Re:Day Trading for a Living?
by PorterDuff on Wednesday September 11, 2019 @10:48PM
(#20947361)
As I remember the book, they back tested quite a lot. It's just that whenever they went live with trading reality changed on 'em. Go figure.
They were exposed to a margin call. Trading reality changing or no, if you can get taken out by your prime broker at the end of the day, you need to account for that too and they didn't.
*edit: I'm not a serious student of this aspect, but I recall that none of the top independent hedge funds took a bath in the 2007+ collapse (that is, those that weren't in-house funds from a major wall st. company). They all had their risk management in order and all did pretty well in buying distressed assets. Some like Bridgewater really managed to grow non-stop right through that.