What is the “edge” you have in the markets?

masterjee · #31 17th March 2008, 11:03 AM

Quote:

Originally Posted by hari09omkar

And I thought the Ma was Shashi Kapoor's and the Bangla,Building,Car,Bank Balance was Bachchan's.

Sorry - I thought Anil was Amitabh's hedge - or is it vice versa -

regards
m

masterjee · #32 17th March 2008, 11:09 AM

Quote:

Originally Posted by CreditViolet

Not true. Lot of funds doing Stat Arb have been doing very well consistently. Just because they are not in the news doesnt mean they dont exist. Just like traders, funds that actually make money tend to be very secretive, quiet and shun publicity

Thanks CV - point taken. But one needs to be clear the difference between arb and hedging. Probably for the sake of terminological and semantic clarity some one in the forum should define the difference and similarity between these two operations.

Unless of course it is all semantics

regards

m

sudoku1 · #33 17th March 2008, 12:09 PM

Quote:

Originally Posted by hari09omkar

And I thought the Ma was Shashi Kapoor's and the Bangla,Building,Car,Bank Balance were Bachchan's.

AMIT: mere paas gaadi hai ,banglaa hai , paisaa hai .....
SHASHI:mere pass bhi gaadi , bangla , paisaa hai....
AMIT: HAING.....

.....TO PHIR MAA KISKE PAAS HAI.....?????

aca_trader · #34 17th March 2008, 12:23 PM

Quote:

Originally Posted by masterjee

....cannot understand your logic or argument.... (maybe later)....
so called hedge funds are doing everthing except hedging.
most of them are chasing momentum..ie directional calls backed by goblygook formulae...which probably their handlers cannot understand

why? real hedging is boring.

regards
m

Hedge funds derive their common name from the first such private fund which was 50% long & 50% short in the market and hence was called a hedge fund.
However, Hedge funds are only an euphemism now and basically they are closely held, closely invested funds with nothing to do with hedging; neither the SEC regulations governing them nor the exchanges they trade on require them to do compulsory hedging. The investors who are eligible to invest into such private investment pools (Accrediated Investors) are well aware of the fact. The compulsory hedging requirement is applicable only to market makers and specialists (This breed does not exits in Indian Markets).

Regards,
--Ashish

aca_trader · #35 17th March 2008, 12:27 PM

Quote:

Originally Posted by CreditViolet

Not true. Lot of funds doing Stat Arb have been doing very well consistently. Just because they are not in the news doesnt mean they dont exist. Just like traders, funds that actually make money tend to be very secretive, quiet and shun publicity

Stat Arb, most of the time, like volatilty arb or takeover arb is only partial hedge and sometimes even that partial hedge may not work in extreme market conditions. Most of these stat arbs are much of mean-reversal directional bets.

CreditViolet · #36 17th March 2008, 06:52 PM

Quote:

Originally Posted by aca_trader

Stat Arb, most of the time, like volatilty arb or takeover arb is only partial hedge and sometimes even that partial hedge may not work in extreme market conditions. Most of these stat arbs are much of mean-reversal directional bets.

But sir, the question was not whether it was partial or whether it doesnt work. The question was whether some HF's are doing any hedging at all, which they were.

trader111 · #37 17th March 2008, 10:05 PM

Quote:

Not true. Lot of funds doing Stat Arb have been doing very well consistently. Just because they are not in the news doesnt mean they dont exist. Just like traders, funds that actually make money tend to be very secretive, quiet and shun publicity

that supports my previous posts

On NYSE, program trading currently amounts to around 50% of daily volume. Lately algo traders incorporate order book based strategies. Since they have a far advanced execution platform, it is an obvious peril to daytraders edge.

NSE daytraders will feel the same pinch sooner or later.

oilman5 · #38 17th March 2008, 11:05 PM

just go to www.smarttrading.com
............................................
since i have lot to learn

CreditViolet · #39 17th March 2008, 11:53 PM

Quote:

Originally Posted by oilman5

just go to www.smarttrading.com
............................................
since i have lot to learn

That site looks 'spammy'

marcus · #40 18th March 2008, 08:58 AM

Quote:

Originally Posted by oilman5

just go to www.smarttrading.com
............................................
since i have lot to learn

Sudipda

Nice to see you posting again after quite a while, hope your trading is going well

Best wishes