Easy edges in the markets for retail participants?

Laissez Faire said:
This wasn't about me, but about me being tired of losers deluding themselves (and others) into thinking they're winners.

It's dishonest.

But I'll bite.

Where have I've been told this that you're talking about?
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For the ES, here's one of several. This was during the time when the buzz was all about the "head and shoulders" in the ES. I was off by 12pts, but I'll take an error of less than 0.1%.

And for the NQ, I've been posting these since July, last update today.

I can answer in advance though. I'm not trading or doing any research at the moment because:

1) I'm a full-time student and in addition to that work nearly 100% on the side.

2) I do not have a stake at the moment.

If I will return to day trading, I will continue where I left with the methodology I developed on my own.
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And if you're happy with it and making all the money you want, that's really all that matters.
 
ras72 said:
What. You don't play backtested setups yourself? You mean you add context and a degree of discretion?
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The setups I trade have been thoroughly backtested by hand using spreadsheets to track the results based on a variety of variables such as method of entry, fixed targets/flexible targets, and price environment (context) leading up to the price action pattern.

To me a setup includes context: Setup = pattern + context

For example, the price behavior pattern that signals my A1 setup is qualified as valid if certain conditions (context) are met. These are defined conditions.
 
NoDoji said:
The setups I trade have been thoroughly backtested by hand using spreadsheets to track the results based on a variety of variables such as method of entry, fixed targets/flexible targets, and price environment (context) leading up to the price action pattern.

To me a setup includes context: Setup = pattern + context

For example, the price behavior pattern that signals my A1 setup is qualified as valid if certain conditions (context) are met. These are defined conditions.
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You could just copy and paste this same exchange from October. That, plus distinguishing between those who want to learn something and those who just want to argue, will save you a lot of time.
 
dom993 said:
That said, I know for a fact that some price-action patterns disappear over time (the DF20 reversal being one such pattern), and no matter how much money one made in the past trading that pattern, it is now a net losing pattern.
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Wow, what is a DF20 reversal pattern?
 
scalptrader said:
I trade false breakouts of false breakouts.

In other words, I wait for breakouts to fail and the faders to come in. Then I fade the faders. I get 70% win rate and a reward to risk of 3:1.

As a highly successful and very experienced trader, I have learnt that the less obvious ways are best.
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Right out of Brooks' Reading Price Charts Bar By Bar.

The ET community just hates this setup :D
 
ras72 said:
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
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How do you define a retail trader? Is it based on AUM or trading in a customer account vs a BD account? If I have a customer portfolio margin account I get very good leverage but not as much as a prop account. However, most prop accounts don't allow 6:1 over night and a CPM account does. A CPM account is typically large then most Prop traders too.
 
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