Why does one have to be lazy because they prefer the charts over a mathematical approach? If charting works for said person, then what's the problem? Are we trading to make money or to attain intellectual bragging rights?
$19B fund uses technical analysis?
- Thread starter WeToddDid2
- Start date
I think what he means is MOST CLASSICAL CHARTISTS aren't profitable. If you are...your're the exception. I do use charts.
I was referring to the classical everywhere on the internet available garbage (for free).
Double bottoms, cup and handles or Elliot Wave patterns...
Because looking at a chart to make a decision is subjective. When running a fund, you want subjectivity to be cut to a minimum or better yet, completely eliminated.
Not quite. Algorithms are math and if unchanged they are objective. A chart trader on the other hand has emotions and we will pull the trigger on a pattern on a rainy monday but skip it on a sunny tuesday, he'll take on more risk where there is volatility in his personal life as well. People aren't particularly good at objective repetitive behavior.
Subjectivity is not a question of tool but a question of mind.
If you work with graphs (with or without indicators), price, volume, order book, facts : they are what they are. Real. But your own analysis is subjectivity.
If you look at graphs or numbers, and just go with the flow : you are closer to objectivity, and at the end profitability. No emotion. You trade what you see. You win. You lose. This is routine. But at the end of the day, week, month, year ... you get more winners than losers.
Alas, we are not robots but humans, we usually want to "interpret" numbers or graphs in order to fit our desire : we "feel", "hope", "anticipate", "regret", "shall", "can't accept", etc.
Emotions are the roots of subjectivity, not graphs or any other tool by the way.
CM
I didn't say they were. Running data through code is always 100% objective, even the best human trader would be less than that.