Are you sick of technical analysis? I am...

[Martin Gale]

Quote from Pekelo:

You mean if Mondays are down 52% of the time, we should play it from the short side? (and silimar crap?)

You're an idiot. But then, you knew that.

 

[wutang]

Quote from nukethewhales31:

there are random trading systems built that work on the style of thought that its all random... not saying i agree or disagree with it but it doesnt run on past.

Yes I'm learning about that. This is a recent revelation for me. That's why I found the coin flip thread so interesting before it got trashed. I like the idea of this and stat based strategies because they are objective. I'd also bet there are far less retail traders doing those strategies because it will take real work and thought to successfully implement them which makes it more appealing to me.

 

[MAESTRO]

Quote from dtrader98:

FWIW, there is an interesting set of slides from a hedge fund/physicist that discuss some of the ideas here from a quant POV. Enjoy.
----------------------------------------------
Fundamental Financial Analyst: Price/Earnings ratios, global economy, demand for products
MSNBC
Financial reports company by company

Quantitative Financial Analyst: large data sets of historical prices, etc, and statistical models
Data mining, pattern recognition, analysis


Technical Analyst: moving average trend lines,Elliot wave theory, visual patterns in pricing (“cup and bowl”, “evening star”)
Generally not well-founded in statistics

www.fnal.gov/orgs/fermilab_users_org/Krane.ppt

Comparing TA to QFA is like comparing high school math (if that) comprehension to graduate level math comprehension. Notice the bulk of best sellers pander to the high school math crowd (Ironically), while the 'good' stuff that pros use is hidden away in esoteric texts that few bother to read (nor will most even comprehend).
There are a few (but very few) posters here that I would classify on the QFA side. Seek them out and try to understand what they have to say (because there are also a few generous ones who throw a bone once in a while).

The problem with many pure QFA sites (much like actual real life jobs) is that they are filled with pontificating mathematicians who like to derive obfuscating equations all day long, but couldn't trade their way out of a paper bag.

If you can blend both sides, then as someone once quipped, the world is your oyster.

Excellent post! I could sign my name under each line. The slides are hilarious! They look exactly like one of my presentations. Conclusions: All quants think alike. Knowledge is the must, Skill = your ticket to success.
Cheers,
MAESTRO

 

[dtrader98]

Quote from MAESTRO:

Excellent post! I could sign my name under each line. The slides are hilarious! They look exactly like one of my presentations. Conclusions: All quants think alike. Knowledge is the must, Skill = your ticket to success.
Cheers,
MAESTRO

Quote from dtrader98:

There are a few (but very few) posters here that I would classify on the QFA side. Seek them out and try to understand what they have to say (because there are also a few generous ones who throw a bone once in a while).

....and here is one of them.
Pay attention folks.

 

[ProfLogic]

Quote from dtrader98:

FWIW, there is an interesting set of slides from a hedge fund/physicist that discuss some of the ideas here from a quant POV. Enjoy.
----------------------------------------------
Fundamental Financial Analyst: Price/Earnings ratios, global economy, demand for products
MSNBC
Financial reports company by company

Quantitative Financial Analyst: large data sets of historical prices, etc, and statistical models
Data mining, pattern recognition, analysis


Technical Analyst: moving average trend lines,Elliot wave theory, visual patterns in pricing (“cup and bowl”, “evening star”)
Generally not well-founded in statistics

www.fnal.gov/orgs/fermilab_users_org/Krane.ppt

Comparing TA to QFA is like comparing high school math (if that) comprehension to graduate level math comprehension. Notice the bulk of best sellers pander to the high school math crowd (Ironically), while the 'good' stuff that pros use is hidden away in esoteric texts that few bother to read (nor will most even comprehend).
There are a few (but very few) posters here that I would classify on the QFA side. Seek them out and try to understand what they have to say (because there are also a few generous ones who throw a bone once in a while).

The problem with many pure QFA sites (much like actual real life jobs) is that they are filled with pontificating mathematicians who like to derive obfuscating equations all day long, but couldn't trade their way out of a paper bag.

If you can blend both sides, then as someone once quipped, the world is your oyster.

Great post and nicely put, especially pointing out the advantage of blending!!

 

[cap'ncod]

Quote from ProfLogic:

Great post and nicely put, especially pointing out the advantage of blending!!

Or was that 'the world is your lobster'...anyway, if you're a maths dunce you can still make it because of the wonderful world of chart patterns (takes a bit of working out to discover which the best ones for yourself are). I suppose it's geometry, always my favourite part of maths. But price patterns do tell a story and can be used to trade effectively from (as long as you are disciplined in all the other areas. Charts are maths in motion.

 

[ambienCR]

Quote from ProfLogic:

Great post and nicely put, especially pointing out the advantage of blending!!

jack hersheys little brother shows up to PITCH his products and ideas he sells in $$400 books and 3rd world seminars to the gullible and naive.

what an ignorant trying to sound learned.

the PIED PIPER of hersheydom

 

[Pinozi]

Quote from TradePilotPro1:

How about old style Price action ...............that is a new idea!
try it you will like it, I promis it will never let you down

Is is not the Easiest for newbie's to learn but it truly is the
best


Happy Trading,

Joe

Can someone please define what trading by "price action" is?

Is it just having a simple chart - candles, OHLC, line - just plain price and no squigley lines on it?

Is it just watching the depth and price move - e.g. watching the bid offers and depth on ES?

Does volume come into the picture?

 

[d08]

Quote from ambienCR:

Once again you are wrong.

IT IS NO LONGER the masses of people that move the market. this entire behavioral premise of TA is IGNORANT,

IT IS THE BIG MONEY THAT MOVES THE MARKET. ONE MAN, on a whim, who controls the masses of money, CAN CHANGE THE DIRECTION of the market. IT IS NO LONGER THE ANTS and their easy to follow fear and GREED--- it is the hedge fund managers who toss the market.

HOW DARE YOU BELIEVE YOU CAN PREDICT WHAT A SINGLE PERSON will do in the future.

YOU ARE LIVING IN 1967---- when there may have been some truth to quantifying human behavior.

once again, it is the SINGLE man who has the money that moves the market-- NOT THE MASSES

Partly correct but couldn't agree completely - you describe it as 25k ants and one 50bln player when in reality its more like 25k, 50k, 100k ants; 1-50 mln average fund managers and 50mln+ hedge fund managers - most importantly all these can trade against each other.

I agree with Raskolnikov that TA isn't only MA crossovers and Bollinger Band violations which by the way still work when applied correctly
I truly believe FA, TA and SA all work when applied correctly and I apply elements of all 3. The debate should center around correct application not classification of analysis.

 

[nukethewhales31]

Quote from Pinozi:

Can someone please define what trading by "price action" is?

Is it just having a simple chart - candles, OHLC, line - just plain price and no squigley lines on it?

Is it just watching the depth and price move - e.g. watching the bid offers and depth on ES?

Does volume come into the picture?

its the action of price.