Algo's are pushing every market toward randomness - God help us traders

jimmiebarton · May 13, 2015

i960 said:
Okay well if you were referring to your trades as being "challenged" meaning they consistently go against you, find out why that is. Surely if you had taken a more patient entry in 100% of those cases then 100% of the time they wouldn't have gone against you so much.

Algos, pro traders, etc. they know where small time guys are getting in - and they regularly take advantage of that.

Take advantage of them taking advantage.

do you notice that every trade you place creates a perturbation of price action???
whats the odd against that?

i960 · May 13, 2015

jimmiebarton said:
do you notice that every trade you place creates a perturbation of price action???
whats the odd against that?

In ES or similar? You're but a drop in a small ocean of liquidity. You aren't being targeted specifically.

IAS_LLC · May 13, 2015

jimmiebarton said:
do you notice that every trade you place creates a perturbation of price action???
whats the odd against that?

Would this perturbation of price action be inside the spreads of 10 years ago?

tommo · May 14, 2015

Algos make trading easier if you know how to trade them. I've made most of my money since volatility has dropped out of the market from trading off the back of algos.

As for comments like "algos stop markets trending"... here's an idea... trade mean reversion strategies!!

Also they don't stop trends, bonds and equities for the past 5 years looks pretty trendy to me.

tortoise · May 14, 2015

jimmiebarton said:
there was a time i could 'eye-ball' a chart.

everything now, is stats,math rigor; not complaining just saying

i've moved on

Gotcha. Ok, that's true. But the math is pre

tortoise said:
The algos make it easier.

So long as their algo behavior doesn't drive you batty, that is.

Take the ES rise from yesterday to this morning. It dropped to the halfway point (2092.75) a few minutes ago. A logical place to go long, if you're so inclined to the countertrend.

With proper risk management, a perfectly valid trade.

What's random about that?

Q.E.D.

Rum Runner · May 14, 2015

tommo said:
here's an idea... trade mean reversion strategies!!

No kidding. Adapt. Mean reversion kills it right now. Enjoy.

jimmiebarton · May 14, 2015

Rum Runner said:
No kidding. Adapt. Mean reversion kills it right now. Enjoy.

Easy to say but naive. AI will kill the market. Right now most of trading occurs b/w superfast computer algo's. Human traders are now the minority. Algo's are getting smarter and faster.

Rum Runner · May 14, 2015

jimmiebarton said:
Easy to say but naive. AI will kill the market. Right now most of trading occurs b/w superfast computer algo's. Human traders are now the minority. Algo's are getting smarter and faster.

I think you need to step back and re-evaluate things. If a particular method isn't working, it doesn't mean everything has stopped working..

jimmiebarton · May 14, 2015

http://www.huffingtonpost.com/2014/...rtificial-intelligence-dangers_n_6255338.html

Before AI kills us it'll kill the market. Every single tick will be pounced on and hammered back the end result a flat price line on the chart. Markets need to develop trends to survive.

tortoise · May 14, 2015

jimmiebarton said:
http://www.huffingtonpost.com/2014/...rtificial-intelligence-dangers_n_6255338.html

Before AI kills us it'll kill the market. Every single tick will be pounced on and hammered back the end result a flat price line on the chart. Markets need to develop trends to survive.

Dude, while you're b*tching about AI, I went long overnight. Whaddup?