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  1. trhudson

    Goldman Sachs is replacing old school traders with junior finance grads who know how to code

    Yeah, it was written almost 100 years ago that there were 4 price action principles that have stood the test of time in all markets across all time frames. Are you saying that's going to change?
  2. trhudson

    Does trend-following work in short-term trading or better use mean-reversion?

    If one does not use any sort of Risk Management / Position Sizing Techniques, neither one will likely work.
  3. trhudson

    Chart Pattern Statistics Book

    One of the problems with patterns and charts is that most people look at a chart and they will say this looks like a '_____ pattern', basically assuming that a pattern actually exists. If one has not mathematically defined a pattern, no matter what it's components (price, volume, time, or any...
  4. trhudson

    The Intra-Day Momentum Method ~ S & P 500

    http://www.tradingmarkets.com/authors/todd-hudson The Intra-day Momentum Method was designed to help determine the best way to trade a particular stock / ETF, whether it is trend-following or reversion to the mean, in connection with a low-to-mid frequency intra-day trade. In order to determine...
  5. trhudson

    Ways of testing Mean Reversion

    Eventually, all moving averages will be re-visited...because they are 'averages'. However... If you are looking at a moving average on a 'Daily' basis, you have to realize it is calculated on the 'Close'. Here's the problem - it may not reach the moving average on an intra-day basis...but...
  6. trhudson

    Is Genesis/Wang still in business?

    Laser is now under Singularity Technology Solutions http://www.ststrader.com/
  7. trhudson

    Opening Range Break

    In regards to time frames:
  8. trhudson

    Opening Range Break

    I don't look at a chart (or time frame based analysis) to analyze what the price does, so I will take your word for it. I will tell you that, since the topic was Opening Range Break, that there is quite a bit of difference in how AAPL reacts off the Open and how most indices act off the...
  9. trhudson

    Opening Range Break

    Interesting ...care to elaborate?
  10. trhudson

    The best of both worlds...RTM and Trend Following

    It's not a matter of trend vs. counter-trend (or reversion to the mean), because a trend must occur for either to make money. A reversion to the mean trader cannot enter a position and make money if the position does not go the other way. He cannot continue to add to a position if it goes...
  11. trhudson

    The best of both worlds...RTM and Trend Following

    I think it's important to understand why a strategy would work or not, that's why I think it's important to know what is happening in a larger time-frame. Not attempting to trade it, but realize why the method may / may not be profitable. Whether one is traditionally a reversal or...
  12. trhudson

    Current Day's Open Position

    I was going to suggest that the closest would be a logical reason, but that is somewhat misleading as this may diminish ever so slightly at the extremes. As for the most liquidity - in terms of stops - while off subject, also explains why stocks tend to be more volatile on an intra-day basis...
  13. trhudson

    The best of both worlds...RTM and Trend Following

    Actually, I am not referring to either of those methods. I am referring to a 'longer-term' intra-day trade, whereby the trader may be implementing either a reversion to the mean or a trend-following strategy, but entering using the same technique. This is of course, a position trade and...
  14. trhudson

    Current Day's Open Position

    For the SPY: Open Upper 50% / Higher High = 65% Open Upper 50% / Lower Low = 26% The logical reason as to why this occurs = THAT'S WHERE THE STOPS ARE PLACED.
  15. trhudson

    The best of both worlds...RTM and Trend Following

    I can assure you, it's certainly not an advertisement. This simply proves my point as to how people see things differently. I am only implying that we all see something different in the market. And while I may demonstrate a strategy / entry method one may say well, you are certainly...
  16. trhudson

    The best of both worlds...RTM and Trend Following

    There is an entry method for day-trading that can be used for both mean reversion and trend-following. This is because a trend trade intra-day may be a reversion on the daily. However, many would likely view this as a trend-following entry method, but they are not likely looking at the 'big...
  17. trhudson

    When a system spectacularly fails

    A few things that are obvious, although in hindsight (these could be measured in real-time): The market has dropped significantly and likely to be trading in a much tighter range on an intra-day / day-to-day basis. When trading a trend-following system, this leaves much less movement for the...
  18. trhudson

    Current Day's Open Position

    The purposes of this post : 1. To demonstrate that market-based tendencies are different than individual stocks. 2. While I am not suggesting that it is a bad practice to implement a stop-loss below the previous day's low or above the previous day's high for swing traders...I am...
  19. trhudson

    Current Day's Open Position

    The numbers are going to add up to greater than 100%. If you have an outside day, that day will be counted twice - as both a new high and a new low. Inside day is typically in the neighborhood of 17-20% Outside day is typically in the neighborhood of 7-10%
  20. trhudson

    Current Day's Open Position

    I will agree that it's certainly going to vary among instruments, but how much? What is surprising, in my view is that the SPY is mean reverting and AAPL is not (on an intra-day basis), yet if you compare the results you would certainly be surprised that AAPL actually creates a Higher High...
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