undefined | Better HN

0 pointscolechristensen6y ago0 comments

On average (and very much more than just average) there is a negative correlation between trading frequency and portfolio performance (you are not an HFT firm, don't compare yourself to one).

Set up a system like that wrong, and it doesn't matter how smart the crowd is, you're going to lose all your money. It would be interesting to play with the parameters of the game and see how results changed. (how often trades are made, max portfolio % per trade, voting mechanics, etc.)

0 comments

benj1116y ago

Agreed

You'd want to play to the 'wisdom of the crowd'.

Perhaps some kind of voting on a selection of likely stocks?

imtringued6y ago

Sounds like the most optimal setup would be a single vote (1 vote = $1 spent on a stock of your choice) at the start and then just wait 1 year for the results.

jtolmar6y ago

You could put in a set amount per day (or week), choices weighted by the votes since last time, and get some of the benefits of dollar cost averaging, plus more reason for continued engagement.

Maybe introduce sales after it's been around for a year. (Though I'm not sure which mechanism, DCA doesn't work in reverse.)

j / k navigate · click thread line to collapse