“Give me $100 today and I’ll turn it into $398 million in 20 years.”

Are you down for the offer?

This is exactly what the most successful quantitative hedge fund, Medallion Fund, achieved from 1998 to 2018. It’s likely that all investors in this fund are now billionaires.

Over their impressive 30-plus years of performance data, the Medallion Fund has only had one losing year. This demonstrates the incredible potential of quantitative trading.

Unfortunately, the Medallion Fund is not open to public investment. For the 99% of retail traders who aspire to create their own “Medallion Fund,” the lack of quantitative finance and programming knowledge poses a
significant challenge in building a mathematical model to analyze and trade in the market.

To grow their wealth, some individuals choose to invest in ETFs and indices (such as the S&P 500, which has seen a 600% increase during the same period), while others prefer alternative strategies to aim for a even higher return. This leads to the emergence of scalpers and day traders who utilize high leverage and tools to maximize their gains.

However, 90% of retail investors lose money in the market, including trading influencers who never reveal their long-term portfolios.

So, how can we achieve something extraordinary like the Medallion Fund?

This is where TradeDots comes in. TradeDots is a quantitative trading company that develops indicators and tools specifically for retail investors. These resources provide unique insights and knowledge to enhance trading results.

TradeDots focuses on the more challenging aspects of quantitative trading, such as researching and building mathematical models. This allows users to concentrate solely on executing trades using these models and tools.

TradeDots has recently released its second version reversal indicator on TradingView. This indicator utilizes price action analysis to identify market pivots. You can try it out with a 7-day free trial here.

Unlike other buy/sell indicators in the market, TradeDots only considers price and time when generating signals.

Backtesting on the S&P 500 index over a 10-year period has shown that the TradeDots indicator improves the cost-averaging strategy by 30%.

However, there is still room for improvement. The current reversal signals model can be further enhanced by incorporating additional market data, such as financial statements and economic indicators, to increase its
accuracy.

This is the true power of quantitative trading. By analyzing large quantities of numbers and data, we can uncover hidden insights in the market.

It’s time to erase all your rectangles and trendlines on charts and start thinking like a logical trader, not a painter.

While drawings can assist in thinking, the market doesn’t care about what you draw on charts, and chart patterns are not reliable.

The market is always uncertain. Believing that you can predict the future is dangerous. A few profitable trades do not prove anything, as one trade alone can wipe out your entire account.

Relearn trading. It’s not something that can be mastered in just 7 days. Even the Medallion Fund experienced losses in its second year before it went crazy.

Trading is a marathon, and the winners are those who can endure until the end, not those who can run the fastest.

About TradeDots

TradeDots is a TradingView indicator that identifies market reversal patterns through the implementation of quantitative trading algorithm on price actions. Try our 7-day FREE Trial to level up your trading game.

Set up your personalized trading alerts using our Telegram Bot, so you can now trade effortlessly without gluing to your screen. Join us now to experience TradeDots across all trading assets!

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Disclaimer: The information provided in this article is for educational purposes only and should not be considered as financial advice. Trading involves risk, and it is important to conduct thorough research and seek professional guidance before making any investment decisions. Prospective investors are encouraged to perform their own due diligence or consult a financial advisor before making investment decisions.