Hacker Newsnew | past | comments | ask | show | jobs | submitlogin

Most trading signals aim to exploit a secret edge. A temporary market inefficiency. The value is in the secret itself. Once you sell the secret, the small window of opportunity is competed away almost instantly.

Trend based models are different. The "secret" isn't a secret at all. Think of a trend based trading strategy more as a disciplined methodology. Trend based models follow price and attempt to identify as early as possible when an asset flips from bearish to bullish.

Therefore, selling our model wont destroy the underlying trend, especially in highly liquid assets, such as: SPX, BTC, etc.



This doesn't make as much sense as you think it does. If you could predictably trade a flip from bearish to bullish (for example, of course there are other trend-based signals), you would not share that signal because others would overcrowd your trade (by buying/shorting and moving the price more quickly towards the trending direction than you).

A potential argument is that these signals are only applicable to a certain bracket of portfolio sizes (e.g. larger AUM funds would not be able to trade this strategy) -- but you are sharing this with folks presumably in your range of portfolio size.


Overcrowding an entry on highly liquid assets is something that is so far from reality for our service.


The more highly liquid an asset, the more efficient it is and the fewer trading opportunities after accounting for transaction costs. In something like the S&P 500, everything is already priced in.

Meme stocks and shitcoins being manipulated by whales are not efficient and also not as liquid.

The larger point remains that none of the above considerations are discussed on this product's page.


I'm realizing there's a lot of confusion about what trend based models actually are. I was under the assumption the concept was more widely understood, but I'm realizing we need to explain it better.

To be clear, there's nothing new or innovative about a trend based model. It's one of the most commonly used investment strategies by intuitions, etc. It's been widely utilized for far longer than I've been alive.


There's no confusion about the type of edge. Just pointing out that if you are selling an edge rather than trading it yourself, you're either grifting or naive.




Guidelines | FAQ | Lists | API | Security | Legal | Apply to YC | Contact

Search: