Can "Noise" Be Traded?

[ktmexc20]

Quote from funky:

that explains it! see my quote below...

Right , but forget the tragic part. I care to be a person of humility.

 

[ElCubano]

Quote from tikipoki:

you'd be either right, or not.

in a second, with no liquidity on the way up/down.

thats gambling my friend (unless you have sneaky inside info )

Tiki

Just as in trading your so called 'noise' ....you are either right or you get stopped out ( not really wrong, but not right ) ....you can do the same trading these so called noiseless gaps.....

 

[ElCubano]

Quote from damir00:

and how would you take the correct position? charts would look like discontinuous perfectly horizontal lines. when you're on one of those lines - maybe for months - on what basis do you decide whether the next horizontal line will be above or below?

The basis would be the same as trading your 'noise'...look for a pattern of up/down gaps and place a bet it would continue in that direction.....

 

[damir00]

Quote from ElCubano:

you are either right or you get stopped out

you don't get stopped out - there is no trading between the two levels. you just find yourself at the next level with a loss or gain of whatever proportion the market deemed "rational".

 

[ElCubano]

Quote from damir00:

you don't get stopped out - there is no trading between the two levels. you just find yourself at the next level with a loss or gain of whatever proportion the market deemed "rational".

\

I understand.....but who said you need to get out at the next gap...you could ride a winner 10 gaps and cut your loss at lets say 1 or 2 gaps...same logic as trading your 'noise'..am i missing something????

 

[abogdan]

Quote from damir00:

you don't get stopped out - there is no trading between the two levels. you just find yourself at the next level with a loss or gain of whatever proportion the market deemed "rational".

That is so true, I feel that we trade exactly the same style. Interesting!

 

[abogdan]

Quote from ElCubano:

\

I understand.....but who said you need to get out at the next gap...you could ride a winner 10 gaps and cut your loss at lets say 1 or 2 gaps...same logic as trading your 'noise'..am i missing something????

You are missing the point, in this style trading becomes binary (step function),

 

[ElCubano]

Quote from abogdan:

You are missing the point, in this style trading becomes binary (step function),

so you are saying it is tradable??? my point is extracting money from market ( tradable ) ....noise or no noise...

'bring the noise' ...chuck D; public enemy

 

[abogdan]

Quote from ElCubano:

so you are saying it is tradable???

Of course! It is the most lucrative style I know of

 

[Weasel]

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