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Alright, Chianti time... back tomorrow. :)

Yea, that's fine to fail, we all did and still do in many ways, but it's not nice to extrapolate failure onto the whole surrounding reality.

I thought we live in the world where premise is innocent until proven guilty. You are trying to turn things upside down? :) What you basically asking for is a ready profit machine, a proven system with an edge. People spend years of work to build those. Would you just give away result of...

What makes you think TA can't be objectively defined?

Why do you think they can't?

Never absolutely. With enough probability to justify trading it, yes. And you are right, PhD's look for them... some even trade them. :D

It depends which hedge funds are considered... :D http://www.elitetrader.com/vb/showthread.php?s=&threadid=257482

Not so much risky as it is difficult. Very difficult to become a profitable trader.

Something must be missing in the story. Why does OP's friend provide the funds to all traders, even those who consistently lose? Why not test their abilities and only hire those who are consistently profitable?

I have no goal to attract anyone as I don't mentor anyone nor do I sell any educational services. Example of a testable format is say: last high is "a" if price tests it again no sooner than "b" number of bars and no later than "c" number of bars, place sell stop entry order under last...

LOL. No mystical power is needed to realize world's top markets are heavily dominated by large players anyway and small players hardly can move ES, NQ or 6E much (as examples). Having said that, I want to add that price action clearly tells when odds favor continuation in a pretty objective...

Correct, I analyze the end result of the actions. Now, answer this question please: how do you think, big (really big I mean, say thousands or tens of thousands of ES contracts) orders are usually just thrown into the market all at once or are executed slowly in stages? You are market...

It certainly is the future as artificial intellect is, but still the future, not present.

Yet all forms of computerized trading algos use market (or multiple markets) data as information inputs, correct? No algos exist, which would interpret what Ben Bernanke says and trade based directly on his words. :D

No argument here. Of course external forces, which influence major players decisions ultimately drive the market. But I am speaking of analytical approaches here: analyzing external reasons (macro-economical picture etc.) directly vs. analyzing market participants actions (aka TA).

Good point, NoD. Any computer algo uses TA by definition, because I've never heard of algos which would interpret fundamental data and make trading decisions with precise timing based upon it. :p

The reason why not mechanical algo is simple (for me at least): I don't know 100% mechanical edge which produces as good result as my chart-reading skill does. If I knew, of course would just run the algo across many markets and devote the free time to philosophy instead. Chart-reading is not a...

I concur. If we continue the analogy, astrology is the form of fundamental analysis, because it deals with external causes of market moves while TA deals with the market itself.

Let's look at monthly gold chart as an example. Obviously, it's rangebound during the last couple of years... but what about before? :) Guess any speculative approach has periods of good and bad performance, that's inevitable and good/bad years also depend on time scale at which a particular...

Traders usually fail because they either lack profitable method (also called edge) or willpower to execute it correctly. Under-capitalization can be the cause of a blow up, but I would relate it to the second case listed above (not being disciplined enough to execute strategy correctly)...