Introducing Nvest
nvest.me
nvest.me
Retrospectively, of course, some of their picks should look like pure gold.
It isn't like I was attacking him on it, just pointing out that feature is effectively ineffective except against truly mass bot type stuff.
If so, you may end up with people deleting their account if they have bad predictions (the usual survival bias of mutual fund investments).
A solution would be to never delete postings, just maybe changing the username into [deleted123] or so.
Long-term Marketocracy funds are under-performing broad index funds FWIW.
What does your Prof say about Warren Buffett.
> some will by chance do well.
Buffet's performance could be due to being skilled, or the reason we're talking about Buffet instead of someone else could just be survivor bias.
http://www4.gsb.columbia.edu/null?&exclusive=filemgr.downloa...
There's also the argument for diversification - investors holding large fractions of their portfolio in one security expose themselves to the operational risks of the company. By holding a broad variety of stocks, you'd expect their "lumps and bumps" to even out on average so you are only exposed to the overall market risk (i.e. hold airline stocks? Offset that with some oil stocks. And those with solar. etc.).
Nvest looks cool, but also seductively simple for the casual observer. It helps pick individual stocks, not necessarily build a balanced portfolio.
Do you take dividends into account? If not, why not?
How do you rank people who make different numbers of picks? A naive method would be to add up all the returns, but this would then favour people who make more stock picks. For example, if I recommend two 'buys' that both give a 10% return, have I gained 20% in total or 10%? (As I would have had to split my bank to invest in both at once)
investing is more than just a buy or sell. what about position sizing? what about position risk? portfolio risk? portfolio beta? how do you benchmark? what kind of drawdown do you incur? what's your sharpe ratio? why are you not adjusting returns for at least the market, and moreso common factor returns?
rank(total_return) != investing success
Your "metrics" should be educational and make people more aware of the financial decisions they are making. By boiling it down to buy/sell recommendations, you make investing into gambling with a 50% chance of being right.
your "transparent" ranking algorithm is not disclosed anywhere - do you have any documentation that your algorithm does more than just show who made the most "money" historically? (past performance is not indicative of future performance!) are your rankings stable? how do you identify persistence?
Then I can fade their bets and become the top :)
How would you deal with that, or would you try to execute through options?
Or is this whole site's effort merely a feature that StockTwits and the other sites may add later on?
You should have the basic sharpe and sortino ratio at least.
You should know this, you are advertising a trading performance evaluation site.
Maybe worth looking into your broken name validation.
It's not perfect, but it might reduce the friction as you solve the chicken and egg problem.