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JLS

01/26/11 1:01 AM

#767 RE: RCKS #764

RCKS,

here's what I would really like to do, or at least find. I looked all over iHub a couple hours ago and I can't find the type of group iHub ought to have. It just doesn't seem to exist.

That would be a group of sincere individuals who were interested in, and capable of, developing algorithmic systems -- notice the plural sense -- that can be backtested over any period of time on platforms that are inexpensive (even essentially free) and available to virtually everyone. I emphasize everyone and inexpensive because I believe the systems that result should be open and available to anyone, even the beginner, and that those people who need help should receive that help.

I also believe that the systems should be limited to EOD systems. There are many reasons for that: 1) very few people are capable of making much, if anything, in the high-speed grapple of intra-day trading; 2) not very many people want to spend 6.5 hours every day staring at a phosphorescent screen (at least not people who still have to earn a living the old-fashioned way, or who have meaningful social lives, or who have imagination enough to desire doing other things, and I can go on and on), and; 3) more money is made by trend traders than by day traders.

The group should also cooperate in developing numerous systems: there is no best system for every market. It is foolish for people to incessantly argue about which system is best. That system which is best for one person doesn't have to be best for another. The system that works best in one market condition, will likely not work best in all market conditions.

The fact that code would be available to everyone and that the platform would be inexpensive or free would eliminate this stupid game of locking horns all the time to prove who's more macho and allowed to mate with the imaginary doe.

However, I don't mean anyone and everyone and beginner in the global sense. If that were the case we would be overwhelmed with leaches. (Sort of reminds me of socialism -- or, survival of the unfittest.) I mean among those who would be, or desire to be, active contributors; and they would only get their code through a secure means so that it wouldn't be distributed to everyone crawling out from under the baseboards. And -- you wont believe this -- I would even admit E-Wavers into the group, but only if they were willing to develop back-testable code representing their system. If they can think it, they should be able to write it down in mathematical form. In other words, we use only the scientific process -- tangible, replicable, repeatable, et cetera.

There might only be three or four people qualified to be part of this new group in the beginning, simply because it could be difficult to find enough people with the software background. But I really believe that it could grow to be quite large. After all, I wrote that we would help. And the mathematics required isn't any more complicated than grade-school algebra. And I can think of one programming language that virtually anyone can learn relatively quickly if they want to, and it is probably already on their computer. For those who don't have the want-to then they shouldn't belong-to. They can just watch from the sidelines.