Algos ruined day trading

[Overnight]

Yeah, when HFTs can make a profit on buying and selling at the SAME price, inefficiencies are harder to find and even harder to capture.

The FUCK!

Qlai, buy my apple for $1.000. You buy my apple for $1.000. I buy back the apple I sold you for the same price you bought it from me. $1.000

So who made money?

Where is the money being made? Something stinks about that crap, man. HFT must die. Re-open the pits, and make it an Octagon. lol!

 

[SimpleMeLike]

https://www.cnbc.com/2019/04/10/ned-davis-research-founder-says-algos-have-ruined-day-trading.html

qlai,

I took the long position at the red arrow.

After 1 hour of waiting, I notice the algos started having fun moving price sideways and taking small profits in a range, I kindly exited my black ass out of the position for a small loss.

The algos are right there on the chart for all to see, who cares about them, just trade, observe and adjust.

 

[qlai]

I kindly exited my black ass out of the position for a small loss.

Algos were just kind to you my friend

 

[SimpleMeLike]

Algos were just kind to you my friend

qlai,

I don't know what the algo are doing, I don't think about that stuff. Just take the trades

 

[zdreg]

Profitable ones are certainly created by people who understand how markets work, imo. I think the key word is "efficient." I was listening to a podcast with Linda Raschke and she was describing a strategy which slowly (years) went from $85 gain per trade to $5 ... Still working but not worth running.

That is exactly the way an efficient market should work. As an edge becomes known and duplicated the return on the edge will be whittled down to whatever is a normal return.

 

[wrbtrader]

qlai,

I took the long position at the red arrow.

After 1 hour of waiting, I notice the algos started having fun moving price sideways and taking small profits in a range, I kindly exited my black ass out of the position for a small loss.

The algos are right there on the chart for all to see, who cares about them, just trade, observe and adjust.

View attachment 200505

Someone will come along and say the algos showed up about 30 minutes before your entry or that they showed up around 1045am est soon after the release of the EIA Crude Inventories report @ 1030am est or that the algos showed up in force soon after 0800am est last Friday August 5th on positive trade news with China.

My point, if you're able to notice that algos are moving price sideways and taking small profits soon after your entry...

Why did you not notice algos having fun pushing price higher since 0800am est last Friday or that you were buying into resistance between 64.60 - 64.79 that was established yesterday ???

Its so easy to notice algos or blame algos after the fact in hindsight but so damn hard to see them before trade entry.

Then again, maybe that sideways price action that you saw had nothing to do with algos and more to do with retail traders chasing the price movement and other retailers trying to Short it or that it did have something to do with algos Shorting CL or exiting their earlier Long positions that they had taken...creating an almost sideways balance between supply/demand when the retailers begin showing up.

A lot to comtemplate.

wrbtrader

 

[murray t turtle]

200 day MA has been irrelevant for about 10 years now.

%% Glad you think so;
100% agreement would ruin any market.

 

[murray t turtle]

Standing still is going backwards. She started also in the early 80's, like Ned Davis. Things have changed a lot since then.

%% True;
unless the ETF pays dividends. As you implied, there were NOT many ETFs in 1980s

 

[SimpleMeLike]

Someone will come along and say the algos showed up about 30 minutes before your entry or that they showed up around 1045am est soon after the release of the EIA Crude Inventories report @ 1030am est or that the algos showed up in force soon after 0800am est last Friday August 5th on positive trade news with China.

My point, if you're able to notice that algos are moving price sideways and taking small profits soon after your entry...

Why did you not notice algos having fun pushing price higher since 0800am est last Friday or that you were buying into resistance between 64.60 - 64.79 that was established yesterday ???

Its so easy to notice algos or blame algos after the fact in hindsight but so damn hard to see them before trade entry.

Then again, maybe that sideways price action that you saw had nothing to do with algos and more to do with retail traders chasing the price movement and other retailers trying to Short it or that it did have something to do with algos Shorting CL or exiting their earlier Long positions that they had taken...creating an almost sideways balance between supply/demand when the retailers begin showing up.

A lot to comtemplate.

wrbtrader

Yes, my a point exactly. I agree. Too much noise and distractions thinking of algos. Best to just trade and think of buyers and sellers.

In my keep-it-simple opinion, algos do not exist to me. Just marketing and goofing around. Pony and clown show.

 

[qlai]

Its so easy to notice algos or blame algos after the fact in hindsight but so damn hard to see them before trade entry.

I agree with all you said, but I think what he meant (and what I agree with) is that no matter who/what the participants are, we are just trading the collective markets the best we can. When I have a bad trade, I don't blame the algos or institutions, or anyone but myself. Doesn't stop me from cursing when bids evaporate to stop me out only to come right back.