The unknown obvious: equity control
It's easy to get a mili a year if you trade 100M account, that'll be 1% a year. A lil bit harder but still easy af to get a mili of you have 10M capital, that'll be 10% a year.
That's how many of "skilled" and famous market participants earn dem money. You might say, "Wait, but that's really not a lot, markets can give much more for these capitals".
Yes but given what they have it's all they can do. They been running very shitty bots for decades, they don't really understand how the market works & how to operate. It's especially widespread in cryptos, a lot of people got rich by accident and now they tryna run a business xD
Anyways, there's a tool that helps dem all to get that 10%/y for investors money, a very obvious thing that is called equity control.
Look at the chart here, is this an equity chart of some1 who've bought TSLA stock during IPO or is it price chart of TSLA stock?
If you think deeper, you don't really care about the price of an asset, you care about your equity. If you buy an asset and then look at your account equity after a while, these two charts will be the same. Every strategy can be viewed as a response modifier, it takes an asset chart, for example, IBM stock, and transform it into a different equity chart, with the ultimate goal of having constant always rising equity chart. Market is fractal, the same principles propagate through all the resolutions, they also propagate to your equity chart.
How can you affect an asset chart? You can buy or sell, 2 actions.
How can you affect equity chart? You can reduce size (down to zero) or increase size, 2 actions.
So what these "skilled" and famous participants do, they stop sending they orders to the real market when a shitty bot/trader/manager starts to loose money, but continue trading on a simulator. When this entity starts to earn money again, it gets "connected" to the real market again. How do they define earning/loosing money? They apply the same strategy/quantitative method they use on asset charts. It could be an SMA, I won't be surprised.
Thing is, you can use the same concept in the right way, you can apply a good method on your equity chart to boost the performance in certain times.
That's how many of "skilled" and famous market participants earn dem money. You might say, "Wait, but that's really not a lot, markets can give much more for these capitals".
Yes but given what they have it's all they can do. They been running very shitty bots for decades, they don't really understand how the market works & how to operate. It's especially widespread in cryptos, a lot of people got rich by accident and now they tryna run a business xD
Anyways, there's a tool that helps dem all to get that 10%/y for investors money, a very obvious thing that is called equity control.
Look at the chart here, is this an equity chart of some1 who've bought TSLA stock during IPO or is it price chart of TSLA stock?
If you think deeper, you don't really care about the price of an asset, you care about your equity. If you buy an asset and then look at your account equity after a while, these two charts will be the same. Every strategy can be viewed as a response modifier, it takes an asset chart, for example, IBM stock, and transform it into a different equity chart, with the ultimate goal of having constant always rising equity chart. Market is fractal, the same principles propagate through all the resolutions, they also propagate to your equity chart.
How can you affect an asset chart? You can buy or sell, 2 actions.
How can you affect equity chart? You can reduce size (down to zero) or increase size, 2 actions.
So what these "skilled" and famous participants do, they stop sending they orders to the real market when a shitty bot/trader/manager starts to loose money, but continue trading on a simulator. When this entity starts to earn money again, it gets "connected" to the real market again. How do they define earning/loosing money? They apply the same strategy/quantitative method they use on asset charts. It could be an SMA, I won't be surprised.
Thing is, you can use the same concept in the right way, you can apply a good method on your equity chart to boost the performance in certain times.
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