3
$\begingroup$

I' m relatively new to this site, but my understanding is that "trading strategies" are not a good topic for the site. Some reasons include "too localized," (will help only one person), or too broad; will generate many "opinionated," as opposed to factual answers.

But I edited one question by tying it to game theory, specifically Nash equilibrium, which appeared to have something to say about the particular strategy. If we could then coach answers in terms of what "Nash equilibrium" (or the Efficient Markets Hypothesis, or Capital Asset Pricing Model) has to say about a strategy, we could "anchor" those answers in finance theory.

On most SE sites, we are not supposed to ask, what do you think about such-and-such (an opinion), but may ask, what does so-and-so (a recognized expert) have to say about such-and-such (the expert's opinion is treated as a fact).

Does tying an otherwise off topic issue (e.g. trading strategies) to a recognized financial theory improve the question enough to make it on topic because the debate is then about the "recognized financial theory?"

$\endgroup$
3
$\begingroup$

The general rule of thumb for all stack exchange sites is that a good question has a canonical answer.

So to answer your question, I guess you'd have to ask, "would this new rule mean that a question about a trading strategy have one canonical answer"?

If so then it seems on topic, if it would still lead to more "In my humble opinion" style answers then it's probably not a good fit.

To be honest I've been on sites where people want to discuss trading strategies and as a beginner it was very exciting, but as I started working int he industry I quickly learned that almost all questions about trading strategy, I'll say up to 99%, are a waste of time.

Those that know don't want to share and those that share don't know enough to know that they don't know.

Sorry if that sounds bleak, but show me an online discussion about trading strategies that has generated a profitable strategy and I'll buy you a beer!

Or put another way, if you want to have a discussion about how to generate profitable trading strategies your best first step is to get hired at a buy side fund.

$\endgroup$
  • 1
    $\begingroup$ I'm on the other side of that equation. I'm in my late 50s, so my "buy side fund" days are over. But I am the author of this book amazon.com/Modern-Approach-Graham-Dodd-Investing/dp/0471584150 It is NOT considered an authority on trading strategies, but coming out in 2004, its claim to fame is that it anticipated the 2008 crash. $\endgroup$ – Tom Au Jun 9 '14 at 20:31
0
$\begingroup$

I agree with Chollida, the argument is that discussing about trading strategies and their realization (as there is a multitude of versions per each general idea), is a never ending post. The answer to such question can only be by means of providing concrete evidence that whatever the answer is, is able to generate profit. Let's not forget that each strategy can be 'pimped' depending on the risk aversion of the trader and not one straight answer exists. I think that we should not accommodate such questions as trading is not an exact science and we are not here to provide investment advice or aid in the realization of profit (if only we can succeed...)

On the other hand, there are people asking for what kind of 'tools' they need to use and learn for the realization of specific strategy, I think that is viable as a topic and can stand (although very short lived and answered) Here is an example were a reader asks about pairs-trading.

$\endgroup$

You must log in to answer this question.

Not the answer you're looking for? Browse other questions tagged .