Does Technical Trading Really Work?

[JTrades]

Darth Vader. Only you could be so bold. The Imperial Senate will not sit still for this.

You must learn to use the force for good, not evil.

You needn't worry about your reward. If money is all that you love, then that's what you'll receive.

So TA really works then it seems. I am converted.

Has Darth Vader just turned his back on the dark side and joined the Jedi?

To be continued...

 

[wwatson1]

The quality of this website has reached a new low. This site has become a site for people who have lots of time and have not the slightest qualification to be a trader or investor. All we still miss is free beer.
I bet that in 10 years new threads about "TA working or not" will still be started at a rate of 1 every week.
I saw this site change from a good website to garbage over the years.
Posting here is useless and reading too as you read 100 times the same stupid postings without any substance.

I've been a member here for 14 years and I don't agree with you

 

[Q3D]

Before the HFT and algorithm revolution circa 2008 and subsequent dehumanizing of the markets any poster could pitch an idea on a stock or trading technique and make some coin. The negativity in the aftermath of the HFT revolution is a necessary backlash and evolution in trading education...we have paved the way for a new generation of trading teachers to integrate price action, real-time per second risk management and conceptual awareness of HFT and algorithm heuristics.

 

[wrbtrader]

Before the HFT and algorithm revolution circa 2008 and subsequent dehumanizing of the markets any poster could pitch an idea on a stock or trading technique and make some coin. The negativity in the aftermath of the HFT revolution is a necessary backlash and evolution in trading education...we have paved the way for a new generation of trading teachers to integrate price action, real-time per second risk management and conceptual awareness of HFT and algorithm heuristics.

Don't forget, many HFT and algos are moving out of commonly known markets and into the world of currencies (Forex). Many research firms have noted a decline in HFT and algos in equities and futures while noting a substantial increase in currencies.

http://www.zerohedge.com/news/2015-...es-now-biggest-source-revenue-hft-titan-virtu

http://www.bloomberg.com/news/artic...med-then-soothed-currency-market-in-snb-shock

Reminder, algos can be problematic in some markets and market conditions and then on other days they can be very helpful or useful in some markets and market conditions. To view them only as bad or problematic for retail traders implies a lack of understanding how markets function in general.

Adapt or find another career.

 

[Mtrader]

The research study you presented recently indicated you focus entirely on the 390 minute per day regular session. There's never a time during that session where slippage associated with large size should be a concern ...unless risk reward ratio is out of proportion as in accepting large risk for the opportunity to earn tiny profits as reasonable and necessary.

Did not understand it this way. You are right. I never go overnight. Only trade between opening and close Chicago.

 

[lawrence-lugar]

I've been a member here for 14 years and I don't agree with you

I'm relatively new here to ET, but not that new to trading.
...as I read old posts from the 'glory days' of trading with people saying, or claiming, they make six figures from their trading account statements...sounds amazing to me.

It is indeed tougher to make a living today from trading. -- you have to really know what you're doing and be skillful.

 

[Q3D]

Don't forget, many HFT and algos are moving out of commonly known markets and into the world of currencies (Forex). Many research firms have noted a decline in HFT and algos in equities and futures while noting a substantial increase in currencies.

http://www.zerohedge.com/news/2015-...es-now-biggest-source-revenue-hft-titan-virtu

http://www.bloomberg.com/news/artic...med-then-soothed-currency-market-in-snb-shock

Reminder, algos can be problematic in some markets and market conditions and then on other days they can be very helpful or useful in some markets and market conditions. To view them only as bad or problematic for retail traders implies a lack of understanding how markets function in general.

Adapt or find another career.

Even if HFT declines in certain markets the move away from human to computer-based trading will only grow with AI improving..more an more PA retail traders integrate automated trading to adapt. PA trading educators have utterly failed if not contributed to the destruction of new traders by not preparing them for these new market conditions.

My point that trading teachers have not properly addressed and integrated price action education with per-second risk management and algorithm/hft pattern exploitation and awareness remains valid.

 

[wrbtrader]

The only folks suitable to teach education about HTF and algo to retail traders are those that actually worked in the industry of HFT and algo instead of by someone that just happen to read informed articles about such.

Thus, that may be why today's trading educators haven't really addressed this issue. In contrast, I see this issue addressed in professional industry magazines that the typical retail trader doesn't subscribe to or doesn't have access to.

Simply, if you want to get schooled about this issues while trying to be a retail trader...its self-education. If you think HFT/algos is the only thing not addressed...many other things are not addressed and I don't think such should be addressed by today's typical trading teacher because the typical retail trader isn't interested in such until after the fact.

These types of retail trader should then just realize a trading teacher has limitations. In those situations, the retail trader must seek a different type of education involving those topics not being taught by the trading teacher.

Analogy, its like going to see a doctor for a foot pain. You then see him and he then sends you to a foot specialist. You go see the foot specialist and that person then sends you to someone else with more specialty if needed. I often wonder why all the middle man and why couldn't I just see the last guy first ?

Simply, maybe those you're questioning should be recommending you to another source if/when they are not able to provide adequate answers about topics (e.g. HFT and algos) you're interested in about your trading. Just as important, its your responsibility to research these topics too on your own especially if you want up to date (current) info and not something from a few years back.

 

[NoDoji]

From entry to profit in 10 seconds? That's faster than a rocket. Of course no losses. So TA really works then it seems. I am converted.

If your definition of "works" means "no losses", I'll save you from wasted hours, loss of capital, and resulting heartache with this advice: Forget trading and move on with your life.

 

[NoDoji]

So I assume that you can never take a big position? I mean for example 100 or more contract ES?
Or in other words: size is very limited?

PS: and as you know for men size matters!!!

I believe significant size would be quite limited for the way I trade. ES would allow the largest size to slip under the radar, IMHO, but it really doesn't matter to me because I trade small as a day trader and save size for option-based swing trades.