2min chapter

Chat With Traders cover image

245: Jason Shapiro - The Mind of a Tape Reading Contrarian Trader

Chat With Traders

CHAPTER

Is Return Degradation a Common Problem in Program Trading?

You mentioned that you were bothered by return degradation. Is this common when using program trading? I use discretion on top of it. Sometimes my system will say buy something and I won't buy it. Or say anything on the cell, you know, I won't make any trades now that my system doesn't say make. But there are trades that I will make that I won’t make that my system does say make. That's because I have learned partially through that process of when we were fully systemized. And I can recognize them that this is the weakness in the system. So therefore I can sort of ignore those trades.

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