Anyone using indicators successfully for day trading?

[Howard]

ok cool. What kind of patterns?

Any theories on why ES found a bottom at 2751 today?

Any theories on why it's likely to close around 2769?

 

[tommcginnis]

Watching chart history is like driving a car using the rear-view mirror. Looking at the L2 order book is like driving a car looking forward.

You realize that you just put all those guys with icebergs, and all those guys posing spoofs, on the floor with laughter, don't you, Mr. RobtheQuant, HFT, OBE, OMG?

 

[robthequant]

When your algos fail (as they are going to), and you start telescoping out from the picosecond scalpel to the 1-second forests and the 1-minute hinterlands, keep this discussion in mind.

Innovate. Adapt. Overcome.

yes, I totally agree... unless I develop self adapting AI that constantly trains itself and adapts to the market, so when it starts failing in one time-frame it will progressively switch to another time-frame by self adaptation ... better yet, having an ensemble of 100 diverse self adapting AI traders and trade only when majority agrees on the trade... working on it

"Innovate. Adapt. Overcome." that's the new credo of my army of AI traders

Expecting a ton of heat and fire for the statements above on why AI can't beat human traders and why I'm full of BS

 

[murray t turtle]

At least that's what the order flow vendors are teaching...

You're analyzing patterns and price history even when using order flow. If you're trading larger swings intraday or even multi-day, I think order flow is not the first priority.

There are specific patterns intraday that can be exploited. Not necessarily chart patterns.

%%

I'm not talking about ticker tape only. I'm talking about limit order flow in and out of order book. There are imbalances, spoofing and icebreak orders... Some orders are sitting there, some orders are canceled and some added. All have a potential to drive price. This is not a history. You're watching the building and collapsing of the potential energy that is the ONLY thing that really drives price. This is how the big boys trade.

Watching chart history is like driving a car using the rear-view mirror. Looking at the L2 order book is like driving a car looking forward. I wish someone told me this early, hope this can help someone who is reading this.

%%
Exactly; looking@ order book is like looking froward thru a microscope.Most states require a rear view mirror, not that its as big as a winshield - its not that, nor a predictor LOL. A big disadvantage for charts, is my older CPA is used to numbers in a row/rows, so he hates charts- charts are much worse than a rear view mirror or microscope for him .....

 

[robthequant]

I am not being attacked for my AI statements? oh, wow
If anyone is interested in my AI experiments, follow me at twitter @QuantRob. I have like 2 followers already!
But please no hate, I have nothing to sell and no agenda other than to connect with like-minded people.

 

[schweiz]

I am not being attacked for my AI statements? oh, wow

Maybe many put you on ignore???
With AI from "actually ignored"

 

[El OchoCinco]

I am not being attacked for my AI statements? oh, wow
If anyone is interested in my AI experiments, follow me at twitter @QuantRob. I have like 2 followers already!
But please no hate, I have nothing to sell and no agenda other than to connect with like-minded people.

Ehh you already shot your credibility so many might just be ignoring the rest of your statements as being in the same logorrhea pattern.

 

[murray t turtle]

Rob the Quant comes off as a knows it all while he shows just how misinformed he is to the point were his claims are so ludacris you just got to assume he is trolling to get a rise. I doubt any adult trader could really be that dense for real.

%%
Partial disclosure; i ''liked'' robQnant //Warren Buffet or sclaper post.LOL-True,2.Even though he simply wrong with his ''random walk'' comment. Good to see your post- i was concerned about the fire + brimstone[ sulfur] volcano in HI. I did think i saw a random walk once; but she simply loved to shop so it was not random@ all. She loved to shop so much she had not much order in her buys//walk LOL,

 

[murray t turtle]

Well, I should clarify that I tested “the shit out of indicators” on the FX market which I concluded are pretty random. I spent almost 3 years reading guru’s books and testing various algo strategies. I also did correlation tests of most common indicators and also fancy “adaptive” indicators created by super smart PHDs, which showed me there was no correlation between the indicator and future price. The only indicator which was correlated is the measurement of how many standard deviations current price is from the mean - like a bollinger band. I had a strategy if price is > 2 standard deviation between 9am and 10am buy/sell in the same direction and then follow it with a trailing stop. This was actually working for a while because of morning news releases.

Now I’m into algo trading order book flow which actually has predictive power. I’m also using “indicators” but very differently - mostly to smooth out or normalize values going into a neural net.

If you’re a discretionary trader, looking at charts and trade using indicators and making money, good for you, because around 95% of your piers are losing money with this approach, so that’s telling you something.

%%
Good points.[BBB ]But Bollinger Band Brakeout$ on larger time frames are/have been profitable in stocks. I like John Bollinger myself, but many in market ignore Bbands.As far as investing goes , many more investors are profitable compared to traders.Thanks for your comments- not the random walk nonsense, the other comments of yours.

 

[cruisecontrol]

I'm not talking about ticker tape only. I'm talking about limit order flow in and out of order book. There are imbalances, spoofing and icebreak orders... Some orders are sitting there, some orders are canceled and some added. All have a potential to drive price. This is not a history. You're watching the building and collapsing of the potential energy that is the ONLY thing that really drives price. This is how the big boys trade.

Watching chart history is like driving a car using the rear-view mirror. Looking at the L2 order book is like driving a car looking forward. I wish someone told me this early, hope this can help someone who is reading this.

I'm very curious what would be an example of a legit edge based on L2. One would think that the orderbook doesn't contain much information these days because of the prevalence of algorithmic trading systems which are designed to minimize information leakage.