Anybody here develop low frequency, long term strategies?

Honestly for those 3 benefits you mention, only the last one is partially true.

All three are true. I don't see how the first two aren't. I pay $4.95 per transaction a few times a year with no slippage. Like I said, only for market making strategies would you be right.

Long term means you hold lots of risk (overnight risk, exposure to long-term changes like black swan events) and betting on a direction.

What you're saying is far too narrow.

It Completely depends on the strategy. If its a long volatility strategy, no black swan event could harm you. In fact, it would likely benefit you. The strategy I implement is an arbitrage play, purely market neutral AND volatility neutral.

Short-term strategies can be directionless and earn money regardless of what direction the market goes, and doesn't get you exposed to big changes happening in the world since you are in and out so quickly out of a trade.

Again, What you're saying is too narrow. That is true depending on what your strategy is. Many HFT strategies have transaction cost + slippage as their largest expense.

/r/algotrading Thread Parent