Alexander_99 wrote: ↑
Tue Jan 05, 2021 12:59 am
Kai wrote: ↑
Mon Jan 04, 2021 11:12 am
Usually the purer your trading is the less variance you get with your results and vice versa, so entirely up to you how you want to approach it, ideally you'd like to get the best of both worlds to smooth out both the scaling part and the variance part, but it's a very difficult (and a luxurious) balance to strike.
Kai, any advice on a "pure trading" approach? What do you mean by this?
Well, it's quite simple, some people trade football directly while others want to trade the volatility around football ("order flow trading", "pure trading", "ladder trading" etc), there is a big difference in approach. The perfect football trader should ideally do both, with the value-based approach you get that big scalability and with pure trading approaches you smooth out the variance around it, it makes the overall work much easier and gives you something to do while you wait for goals etc
There are good examples out there, but take Derek and yourself here. He says here to be scalping the noise around the draw price and doesn't care about who's playing and how, while you try to read and anticipate the actual game of football in order to place straight bets on the potential outcome. Notice the difference. Which type do you think Peter is, is he betting on certain runners based on stats or (pure) trading the volatility around them?
Alexander_99 wrote: ↑
Tue Jan 05, 2021 12:39 am
Having said that, grinding out tiny profits - which is what pure trading seems to be - isn't really my cup of tea, especially since it seems I am simply not good at it.
It's a common misconception, but (pure) trading isn't strictly limited to 1 tick scalping where profits can be tiny with small stakes, it can appear "tiny" compared to catching a goal and the massive swing of price that follows it, but profit from catching bigger swings and price corrections or just recycling many smaller scalps all falls under the trading category, because obviously there are clearly defined entries and exits.
My usage of the word "grind" doesn't necessarily imply tiny profits, the biggest of traders have to grind out their profits as well, just like everyone else.