Do large banks and institutions use TA to profit?

I would not say it helped me improve my trading but yes, it helped explore and test different tactics and strategies. It is not the certification that improved my trading but the years of watching prices move, and that unexplained connection you build with price behavior. Recognizing tops, bottoms, reversals and ranges. Trading them is another story!!

Nothing beats learning it the hard way. Big difference between theory and practice, i would say the certification is only half the work. Without a certification, you can still get much of the theory from books like (Magee, Pring & Murphy). It all depends what you want to do, trading or analysis.
 
motif said:
Please go into a little detail about the CTAs you mentioned, who are they, which companies they work for, what specific methods etc; Kind of a large statement to make without facts
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AHL, Winton, Aspect, Bluetrend, Cantab, Transtrend, Graham, ISAM.

"Which companies do they work for?" Don't understand the question.

Their core trend following is mostly built on evolutions of moving average crossover; slightly improved but still highly correlated to that. The reason for that these firms, and the people they employ, grew out of the AHL / Mint 'DNA'.

GAT
 
volpunter said:
lol, that is like asking hookers how they think people on high moral grounds think and live their lives. Are you sure taking what someone posted on "quora" or "forexfactory" seriously and as a fair representation of what the investment banking and hedge fund industry does? If any of the sell side banks keep a "chief technical strategist or analyst" around then it is to keep some of their more retarded clients happy. Nobody at any of the prop desks I ever worked at has consulted or asked a "technical analyst" to share their wisdom of "Ichimoku Clouds, Death Cross (or whatever its called), moving average crossovers or any of the gibberish that is traded in the part of the retail crowd that does not know better. Does anyone though look at price action in the professional space? Sure they do. No question, but none of them care look at things some in the retail crowd looks at things. Professionals may concern themselves with changes in correlations or dispersion. By the way, I do not consider some buy/sell button pushing monkeys at execution desks professionals. They may chat all day long with their clients how the 100 day MA was over or undershot. I would venture to claim that mentioning any technical analysis piece as major rational for a larger trade at any hedge fund's or sell-side bank's prop desk gets you fired sooner than later.
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Yes, I think it's perfectly valid if they have the credentials and have worked in the industry. Just as valid as your credentials may be.

You do realize correlation trading and dispersions involve looking at historical price charts that bear no outcome on the future? This is why I said what funds do now is based on TA and is like TA on steroids. It's got a fancier name, "quantitative analysis", but is still rooted in TA. Seems you haven't carefully read my post, or understood it.

You really think support/resistance levels aren't watched by the professionals? You really think they don't use fibs or MA's at all? You're really telling me all global macro funds will just randomly enter based on fundamentals? Because I can find many of them saying they use TA concepts for entries, even ones managing billions. Do I really need to prove this?

Just because YOU or YOUR FIRMS don't use TA, doesn't mean other professionals don't. And sorry, but QA is based on original TA concepts and therefore by looking at past price and analyzing what it's done, you are using a form of TA whether you want to admit it or not. Just because you add math into the calculations doesn't mean you're not analyzing historical charts anymore. Of course it's not how TA has become in the retail crowd nowadays. I mean astronomy in markets, really? But TA was once used in a professional manner to read order flow in price action, that is the professional way of using it and is still used to this day by many professionals.
 
volpunter said:
That is bs. HFT firms act on price and volume, only, and they have nothing to do with TA.

TA is unfortunately a pretty loosely defined term which is why most who lose money are tricked into its promises and why it is at the same time so hard to prove it's lack of predictive power.
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Acting on price is a part of TA. Volume, hmm sounds like Wyckoff.

HFT firms can call what they do whatever they want, that doesn't negate the fact that analyzing historical price came from TA and what they do now is related to TA.
 
another one who has never worked in financial markets yet pretends to know it all. Just because correlation or dispersion studies make use of time series does not mean anyone drools over charts, Fibonacci series or whatever they are called, or moving averages. If you claim such then you only give testimony to your own lack of understanding.

FXTraderSK said:
Yes, I think it's perfectly valid if they have the credentials and have worked in the industry. Just as valid as your credentials may be.

You do realize correlation trading and dispersions involve looking at historical price charts that bear no outcome on the future? This is why I said what funds do now is based on TA and is like TA on steroids. It's got a fancier name, "quantitative analysis", but is still rooted in TA. Seems you haven't carefully read my post, or understood it.

You really think support/resistance levels aren't watched by the professionals? You really think they don't use fibs or MA's at all? You're really telling me all global macro funds will just randomly enter based on fundamentals? Because I can find many of them saying they use TA concepts for entries, even ones managing billions. Do I really need to prove this?

Just because YOU or YOUR FIRMS don't use TA, doesn't mean other professionals don't. And sorry, but QA is based on original TA concepts and therefore by looking at past price and analyzing what it's done, you are using a form of TA whether you want to admit it or not. Just because you add math into the calculations doesn't mean you're not analyzing historical charts anymore. Of course it's not how TA has become in the retail crowd nowadays. I mean astronomy in markets, really? But TA was once used in a professional manner to read order flow in price action, that is the professional way of using it and is still used to this day by many professionals.
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bullshit. But please believe what you said if such belief matters to you.

FXTraderSK said:
Acting on price is a part of TA. Volume, hmm sounds like Wyckoff.

HFT firms can call what they do whatever they want, that doesn't negate the fact that analyzing historical price came from TA and what they do now is related to TA.
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volpunter said:
another one who has never worked in financial markets yet pretends to know it all. Just because correlation or dispersion studies make use of time series does not mean anyone drools over charts, Fibonacci series or whatever they are called, or moving averages. If you claim such then you only give testimony to your own lack of understanding.
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Pretends to know it all? Really? If you want to make such bold statements please back them up rather than just making dumbfounded statements. I could do the same for you. Correlation and dispersion make use of price over time data (time series). So do MA's and other indicators. Although both have different purposes, both depend on what price has done over time historically, which is a tenant of TA. Like I said, quants may give it a fancier name but as much as they hate to say it, they are trading a form of TA with just heavier math calculations and testing. Please disprove how QA is not based on historical data over time and then maybe I can call you the oh so wise mr. Market genius.

Btw, I never said quants use technical studies. I said what they do is based on TA. However, not all traders are quants. There are small funds and money managers who trade with fundamentals AND TA. I hope that's simple enough to understand because you are either not reading or properly understanding what I post.
 
One of the major components of mortgage products are interest rates. The value of a treasury bond largely depends on interest rates. Ergo a treasury bond is a mortgage.

Welcome to the idiotic world of common ET logic.


FXTraderSK said:
Pretends to know it all? Really? If you want to make such bold statements please back them up rather than just making dumbfounded statements. I could do the same for you. Correlation and dispersion make use of price over time data (time series). So do MA's and other indicators. Although both have different purposes, both depend on what price has done over time historically, which is a tenant of TA. Like I said, quants may give it a fancier name but as much as they hate to say it, they are trading a form of TA with just heavier math calculations and testing. Please disprove how QA is not based on historical data over time and then maybe I can call you the oh so wise mr. Market genius.

Btw, I never said quants use technical studies. I said what they do is based on TA. However, not all traders are quants. There are small funds and money managers who trade with fundamentals AND TA. I hope that's simple enough to understand because you are either not reading or properly understanding what I post.
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