"Reading the tape is the best indicator we had 20 years ago, and is still the best indicator we have today"
Mike Bellafiore, SMB capital, net > $1 billion.
Mike Bellafiore, SMB capital, net > $1 billion.
Anyone using indicators successfully for day trading?
- Thread starter Howard
- Start date
So if I know a guy that took a market position based on how long he took a dump each morning then I should proclaim that taking a dump is the best indicator we had 20 years ago and is still the best indicator we had today!"
For a quant guy you really fall into the "1 example is a definitive proof to base my opinion on!" quite easily.
wow, it's like one attack after another... I'm not saying it's a definitive proof. Trading is based on disagreement and there are many methods that you can use to make money. I'm saying is: if a trader is looking at indicators and doesn't have much success, he should try to look at the pure order flow instead, and he'll see it's more predictive of future movement than any indicator ever will. That's based on my experience and that is also confirmed by many traders who are making killing. I wish I realized this much sooner. Waiting for another attack now...
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"Then they stopped working because of computerization and algos generating too much noise and these old school traders went and started making money by writing books about them. These books were read by new people who could't make money by trading so they started teaching about these indicators instead. But today indicators on top of historical price are pretty much worthless no matter what the guru is trying to tell you. I tested the shit out of them and my conclusion is whatever you see in the past is an illusion."
Most of the derision ("attacks") were triggered by this pearl of pompous ignorance.
Most of the derision ("attacks") were triggered by this pearl of pompous ignorance.
I had my RSI changed, where normal RSI many make comparisons of highs and lows when they should be comparing closes. On mine when RSI gets above 50 it tracks of the highs within calculation and when it gets below 50 only uses the lows, it gets smoothed out nearing 50 so only one line shows. I find normal RSI to be great for reverse divergence signals whereas this can't be found on normal chart patterns of the strength/weakness of possible move. I have made completed systems just using RSI, can show trend beyond 60/40 or when to take signals like uptrend and RSI comes into 60/40 buy on lower close, risk is less and profits more than momentum plays. You stare at anything long enough, value can increase. Just like stochastics, define trend and wait for fast Sto to drop to 10 and wait for reverse of one bar to enter, risk is cheap, and profit potential greater.
But all my systems were built on premise of reducing losses will provide more consistent equity curve and keeping drawdowns low. By using both chart based patterns of what most use to using more abstract patterns that few use and adding indicators to slow me down because most indicators lag. I don't like much of anything to be fast as too many false signals, and same with chart patterns most use as I often seek the failed patterns to be more reliable, yes I will miss some opportunities of beginning breakouts, but under funded trader failures are much easier for scalp/runners profit and lower losing percentages. But there are couple chart patterns where fast is king but like is taking reversals. I think charting the best for reversals or at very least to stop taking more trend signals.
Yes, correct, all garbage
Anyways.... charts and indicators are nothing but Rorschach tests
You cannot keep track of your bullshit... you should run for office.
So if a trader IS having much success than he is fine looking at indicators based on your logic.
In other words, you contradicted yourself because you selfish ego does not let you comprehend that because you failed at something, others can succeed.
Also no one here said they are simply trading by taking a long signal on MACD or Stochastics. That was your asshole assumption which got you into trouble. Find the quote that said that....
Typical ET argument when someone has no intelligent point. Attribute a bullshit argument to the other side that you can easily take down but no one said ever.
So if a trader IS having much success than he is fine looking at indicators based on your logic.
In other words, you contradicted yourself because you selfish ego does not let you comprehend that because you failed at something, others can succeed.
Also no one here said they are simply trading by taking a long signal on MACD or Stochastics. That was your asshole assumption which got you into trouble. Find the quote that said that....
Typical ET argument when someone has no intelligent point. Attribute a bullshit argument to the other side that you can easily take down but no one said ever.