Easy edges in the markets for retail participants?
- Thread starter ras72
- Start date
the OP doesn't seem to sense or reason that there is a set of participants and the fact that "to each his own" is at play independently.
Larry Harris lays out 32 named types in his heirarchy.
I function in one of those boxes of the heirarchy.
All traders branch from one general box. I am six levels down in my sub ...sub set.
I take profit sectors right along with many other particpants in several boxes.
How can a person not understand the Taxonomy of trading and why it is never competitive?
He places utilitarian investors at the high cost of operation peg. Why would anyone spend so much money to make money from commissiions and fees? Well, there is no other way for these pro's he thinks have an intellectual advantage his mistake and problem).
I trade parasitically as a speculator because I am profit motivated. So I have to frontrun the sentiment of informed traders by using information processed technically in a tax free context. I can only operate at five times the market capacity.
he disparages a trader over and over. So his comments turn out to be bullshit and you can think I'm vulgar.
He is not going to participate further in this thread and he ought to have at least read Harris. So let me know when you are going to get a copy of Harris. Get a better pic, the garden island of Hawaii is a little larger and has an airport or two. Maine is a little different, however.
Quote from ras72:
It appears some retail traders make a living, perhaps even a good one, trading mechanically or fully automatically, an "edge" based on some repeating pattern.
But isn't the existence and long term stability of easily exploitable repeating patterns in price movement, counter to good sense?
By which I mean; shouldn't such opportunities disappear due to the counter action of more professional, higher capital, better equipped, quicker, market participants?
Or, were those to be inescapable consequences of price dynamics, shouldn't they be acted upon more quickly than possible to small retailers, thereby cutting them out?
Assuming that these simply accessible opportunities exist and perdure, why is that? What is their place in the "ecology" of trading? What do "mechanics" and "automatons"(yes I'm being facetious) get paid for?- ras72
I been playing the "game" long time, have backtested thousands of different patterns based on Price, Volume, indicators and spreads, and there isn't enough time to do them all. I am always thinking of something new I haven't tested. And when the market place has started something new, this generates even more to test like HFTs. I found one pattern that is very reliable based on HFTs after they did their signal, have it automated following several markets. Will I share it? Hell no, wouldn't take long for the market to snap it up and destroy it.
The difference between most retail traders and larger traders is experience, I wouldn't now consider anything less than 3,000 sample size to be well backtested. All trades traders make are trying to forcast the future based on the past, think there are few who try to lose money on purpose and just flip a coin, heads we buy.
Most of my signals are generated by taking other side of what others deem way too much risk, I only take the trades that show in the past to have very small percentage of losing trades, plus I hedge to get risk reduced even more.
So long as small traders trade with "gut feeling" instead of a Trading plan, patterns will continue to work well.
Agreed. For retail, there's no point competing with the cool kids. Stick to chasing the overlooked "chubby chicks" in the market. Put some runs on the board, without forgetting your pay grade.
Five months on and I've come to believe that trading properly calls for extreme levels of skill, organization, resources. This is directly visible to some or it can be indirectly inferred observing that it is simply not possible for a game where millions of participants try to take money from each other to be optimally playable by an individual working even 16hh a day. In the end the radical simplification adopted by the back test boys (and girls) does have something going for it.
-ras72
-ras72
Nothing extreme about it. I suggest you review NoDoji's posts from the first page of this thread.
It all begins, of course, with the ability to tell the difference between up and down.
The ideal, highest level playing, is unattainable to an individual. The simplified versions are readily accessible to someone who has spent months on it and come in many varieties.
-ras72