Random trading systems - "monkey with a pin"
Ok now I am sure I am going to get some LOLz from this but it's a genuine question.
I've seen a few articles and papers about random trading strategies and how they can beat a fair chunk of investors performance quite regularly.
What do people think about this?
I think it sounds interesting and could be fun to try, with a very diverse set of shares, funds, etfs or something, but I would want to use some risk management on it.
Thoughts?
I would suggest you try it (paper trade it, not real money) and you may learn something useful.
It seems to me that with any strategy there is an element of randomness, so the articles seem to be comparing strategies with different degrees of randomness. How random is the strategy that is examined in the articles? Is it that the system goes long on a randomly selected stock...or that it randomly selects a stock and then randomly chooses long or short at a random time?