It was a frustrating night. The odds were good, but the built up so weekly that I couldn’t look for new specific patterns to confirm the trade. I sent the alert a bit late, in time to trade, but late. Some traders were lucky to miss it, other did it. As it was attractive but a bit risky trade, I didn’t send this alert to the new traders approaching Nightly Patterns. Anyway I updated my track record with it.
Here’s the alert:
From → Uncategorized
This mathematical effect goes back to its discoverer Claude Shannon:
Markowitz portfolio theory is entirely based on the Shannon's Demon Effect: a portfolio of financial instruments or trading systems can beat the average return of all its components only if their correlation is low or, even better, is negative.
These computational effects are also stronger the often the portfolio is rebalanced.
This incredible edge coming from diversification can even transform a two systems portfolio with negative returns in one single low correlated and frequently rebalanced porfolio with a positive average return.
In this file:
I show how overall results are boosted by Shannon's Demon with 3 simple strategies that are rebalanced daily. One buys long each night from close to next day's open, one from close to next day's close and one from open to close (intraday). It is clearly evident how much overnight trading has a low correlation with other time frame strategy proxies and why it should be included in a trader's portfolio.
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Marco Simioni
NIGHTLY PATTERNS - Overnight Trading
Hi Marco, I am in the Polaris trading room during the day, another trade titan. Do you have a trial to your overnight session? Mark Fuller
From: NIGHTLY PATTERNS To: fllr_mrk@yahoo.com Sent: Thursday, July 7, 2016 10:17 AM Subject: [New post] Futures Trading Room – 5th July Overnight Overview #yiv3320505938 a:hover {color:red;}#yiv3320505938 a {text-decoration:none;color:#0088cc;}#yiv3320505938 a.yiv3320505938primaryactionlink:link, #yiv3320505938 a.yiv3320505938primaryactionlink:visited {background-color:#2585B2;color:#fff;}#yiv3320505938 a.yiv3320505938primaryactionlink:hover, #yiv3320505938 a.yiv3320505938primaryactionlink:active {background-color:#11729E;color:#fff;}#yiv3320505938 WordPress.com | Marco Simioni posted: “It was a frustrating night. The odds were good, but the built up so weekly that I couldn’t look for new specific patterns to confirm the trade. I sent the alert a bit late, in time to trade, but late. Some traders were lucky to miss it, other did it. As i” | |
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