I've had some thoughts about this, ever since I got a complete method of trading, since I realized all the profitable setups that I am missing everyday, on different assets, different time frames... etc
Have any of you guys here on FF, ever tried being a part of a trading team, or have some thoughts about it.
I believe the pros outweigh the cons. If you think about it, lets say you had a method, it worked on all time frames, on a lot of assets, (more than one person could ever monitor) Obviously Volume & volatility is required for it to work properly.
If that was the case, you would be missing out on loads of setups, for example a scalper, or a day trader may only watch a couple of pairs, or even one pair. Because on such short time frames, there are more opportunities. For this to work, everybody in the team would have to be trading the same overall method. But, one guy could be scalping, one guy could be swing trading, and one guy could also just be day trading. We all know how much money you make in trading can be calculated by
Trading expectancy * Trade frequency * Bet size, So.. To increase the amount of money you make can be done by increasing these three things, you can't really increase expectancy unless you lower Trade frequency, so lets say you have a very nice expectancy, then the only real way is to increase Trade frequency and Bet size, now Bet size can simply be done by more capital, and trade frequency can't really be done if you're working as hard as you possibly can - that's where a trading team comes into play, it would also make doing fundamental & sentimental analysis easier, because everyone could do work. And if we're trading the same profitable method = more profitable trading opportunities = More profit, also you could create some trading friends
Now there are cons of course as well.. For example you would have to teach your method to the other people, now if they already had some understanding of trading then that would definitely help. Then you also need to find the right people, with good synergy and communication, and people that are dedicated enough, and willing enough. So essentially kinda tough. But i might wanna try it out.
All of the posts i saw on this topic (the most recent one's" were from 2006 & 2012 - If any of you guys have any experience, or thoughts feel free to post them below, feel like this is a pretty interesting topic that no one discusses apparently.
Have any of you guys here on FF, ever tried being a part of a trading team, or have some thoughts about it.
I believe the pros outweigh the cons. If you think about it, lets say you had a method, it worked on all time frames, on a lot of assets, (more than one person could ever monitor) Obviously Volume & volatility is required for it to work properly.
If that was the case, you would be missing out on loads of setups, for example a scalper, or a day trader may only watch a couple of pairs, or even one pair. Because on such short time frames, there are more opportunities. For this to work, everybody in the team would have to be trading the same overall method. But, one guy could be scalping, one guy could be swing trading, and one guy could also just be day trading. We all know how much money you make in trading can be calculated by
Trading expectancy * Trade frequency * Bet size, So.. To increase the amount of money you make can be done by increasing these three things, you can't really increase expectancy unless you lower Trade frequency, so lets say you have a very nice expectancy, then the only real way is to increase Trade frequency and Bet size, now Bet size can simply be done by more capital, and trade frequency can't really be done if you're working as hard as you possibly can - that's where a trading team comes into play, it would also make doing fundamental & sentimental analysis easier, because everyone could do work. And if we're trading the same profitable method = more profitable trading opportunities = More profit, also you could create some trading friends
Now there are cons of course as well.. For example you would have to teach your method to the other people, now if they already had some understanding of trading then that would definitely help. Then you also need to find the right people, with good synergy and communication, and people that are dedicated enough, and willing enough. So essentially kinda tough. But i might wanna try it out.
All of the posts i saw on this topic (the most recent one's" were from 2006 & 2012 - If any of you guys have any experience, or thoughts feel free to post them below, feel like this is a pretty interesting topic that no one discusses apparently.