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It seems like picking tops and bottoms but with an added element of a decaying straddle...I suppose if you do it enough that the straddle's cost-basis goes down to nothing, it could be worth it, but why put on the straddle in the first place if you were just going to additionally trade the...

I think worrying about HFTs in general is pretty paranoid. Aren't there HFTs designed to spoof limit orders to fool the other HFTs? If an HFT's strategy is so simple to see, wouldn't someone build an HFT to take advantage of the other HFT's strategy? No HFT firm would be content to let a rival...

Those 1 tick profit trades; are those scratched trades or are you actually taking profit at 1 tick?

¯\_(ツ)_/¯ Guessing he kept betting on the bottom that didn't come until Monday morning. SPX ranged about 40 points 9/9/2016...he lost about 200. Probably kept averaging down while praying for a bottom. Hopefully now he sticks to his self-mandated limit of 1 contract at a time.

Why did you start with futures? With a single lot of SPY you would've been trading the same market for 1/5 of the risk. Little late now as you're far below PDT requirements... How many trades did it take you to lose that 10k? What are your signals? You said you trade breakouts; how do you...

You should design a machine to take advantage of this knowledge.

I find it harder to believe that any collection of markets exist in their own vacuum.

I accept that there are no guarantees whatsoever, and that any answers or explanations can be wrong or nonsensical and must be taken with a grain of salt. Despite that, I still assume that if I ask a roomful of traders "How would you explain why trendlines work or don't work?" that there'd be...

I'd rationalize that someone would use line charts over candlesticks if they found the candlesticks too noisy and preferred to evaluate only the closes. Even if the initial prompt is vague, I feel the question of "What, if anything, justifies local maxima/minima following a linear slope?" has...

:-/ An empty statement, as that is what every technique under the sun is meant to do, and something presupposed before the question. Astrology could be a tool for price action analysis, but nobody would use it because we all know the stars have no significance to price action, and it would be...

Trend lines show a pattern? I thought patterns show trendlines. Sure, "limiting" may have been poor word choice. Perhaps "significant" may be better. Support/Resistance are not "limiting" but are "significant." I'm just wondering what the logical rationale is for trendlines, if there is...

Support and resistance is rationalized by the idea that certain areas of high activity, being significant levels in people's positions, continue to be areas of high activity. But the justification to trendlines seems to me to be that the market reduces value at a linear rate, or at least...

I guess I would be interested in seeing short term support and resistance. A daily volume profile could show me where there were strong lines earlier in the day and it'd be easier to visualize how that line develops throughout the day as price action revisits it.

So you don't find volume histograms useful? This just seems like a deeper version of a volume profile.

I know there are a few different softwares that show you volume at each tick within each bar, sometimes even showing whether the transactions happened when it was the bid or the ask. Just looking for personal experiences/recommendations. I currently use IB's TWS.

Google Black Scholes. Not for the faint of heart/math. http://www.fintools.com/resources/online-calculators/options-calcs/options-calculator/ For options with thin liquidity it is possible that the option could deviate from its fair price, but obviously, anything that is obviously profitable...

Depending on your view of efficient market theory, everything is already priced for an expected outcome. All trading is based on the idea that perhaps the value will vary from market expectations. A straddle is certainly worth it if the market prices in for a 5% move yet you predict a 10%...

The pre-earnings volatility drives options prices up; the option sellers know the move will be just as wild as the buyers want it to be. If I had a neutral outlook but wanted to profit on volatility I would have done an ATM straddle while also selling options above and below to improve the cost...

Bit of a chicken and egg situation with arbitrage, ain't it?

What does the index follow? ;)