Fading an unsuccessful strategy?
- Thread starter clambill
- Start date
Well, if you're implying the banks will pay attention to what market makers in Forex are doing and simply fade every move of the small retail player only making up a maximum of 4% of Forex volume, then I could do one trade in one account and the opposite in another account. I have two Forex accounts.
That is what 80% of the newbies eventually trip over as a hare-brained idea, and is one example why newbies lose so often.
Using fib is about as useless as the OP's thought...
Easy to answer:
http://www.elitetrader.com/vb/showthread.php?s=&threadid=153819
And this is only one example.
It is an idea that is one of the most thought at all.
Nevertheless impossible to implement (see thread above).
(Interesting side notice: That thread is one year old pretty much to the day. Perhaps some ways of thinking are influenced by such factors as weather?
)heh, Forex. Thats the equivalent of playing the slots.
Hi _mother,
Would you care to elaborate? Fading in a trending market is very perilous (i.e. "catching a falling knife"). Furthermore, many fade strategies depend on scaling-in 2 or 3 times because it's very difficult to time the moment of the reversal. Consequently, scaling in (avg. dwn) creates a negative risk/reward profile... No Free Lunch...
thanks,
Walt
Would you care to elaborate? Fading in a trending market is very perilous (i.e. "catching a falling knife"). Furthermore, many fade strategies depend on scaling-in 2 or 3 times because it's very difficult to time the moment of the reversal. Consequently, scaling in (avg. dwn) creates a negative risk/reward profile... No Free Lunch...
thanks,
Walt
Lets say the OP and the posters in this thread have no knowledge of logic.
They are asked to prove this.
They select a leader and he posts the first post in this thread. They all join in an prove they have no knowledge of logic.
Here is the picture. It is a map in two dimensions on transparent plastic. They all change one dimension to get what they think is the opposite map by turning the map over by rotating it on its horizontal axis.
Did they get the opposite map? NO they didn't and they do not know it.
The second half of the job still has to be done with consideration to the other axis. Be careful, you might think you can do a second rotation.
In logic "AND'S" and "OR'S" are not opposites. Inverting signals into an AND and getting their output, doesn't give you the same result as putting signals into an AND and inverting the AND output.
At some point it may occur to some of you that the market is counterintuitive. This may come to mean to you that doing what you do for other than market thinking doesn't apply to markets.
The better orientation to the markets is left and right rather than up and down. What the markets do up and down is NOT the opposite of what markets do left and right. One orientation makes money all the time the other one is what ET members talk about.
So you never learned to think critically. You just think the way you were taught in a mass production formal and informal education orientation. You think like everyone else and you get as far intellectually as everyone else you know.
The southern district (of NY) is prosecuting a former GS employee for stealing. On his last day he walked out of GS with a laptop. He was a programmer for HF trading. Questions: Who was the dumb fuck at GS who let him walk out with a laptop? Who was the dumb fuck at GS that underpaid this guy? Who was the dumb fuck at GS who paid 500 million 10 years ago for a HF trading company?
Anyone here know what the definition of the "right side of the market is?"
LOL.....
Why don't you figure it out???????
They are asked to prove this.
They select a leader and he posts the first post in this thread. They all join in an prove they have no knowledge of logic.
Here is the picture. It is a map in two dimensions on transparent plastic. They all change one dimension to get what they think is the opposite map by turning the map over by rotating it on its horizontal axis.
Did they get the opposite map? NO they didn't and they do not know it.
The second half of the job still has to be done with consideration to the other axis. Be careful, you might think you can do a second rotation.
In logic "AND'S" and "OR'S" are not opposites. Inverting signals into an AND and getting their output, doesn't give you the same result as putting signals into an AND and inverting the AND output.
At some point it may occur to some of you that the market is counterintuitive. This may come to mean to you that doing what you do for other than market thinking doesn't apply to markets.
The better orientation to the markets is left and right rather than up and down. What the markets do up and down is NOT the opposite of what markets do left and right. One orientation makes money all the time the other one is what ET members talk about.
So you never learned to think critically. You just think the way you were taught in a mass production formal and informal education orientation. You think like everyone else and you get as far intellectually as everyone else you know.
The southern district (of NY) is prosecuting a former GS employee for stealing. On his last day he walked out of GS with a laptop. He was a programmer for HF trading. Questions: Who was the dumb fuck at GS who let him walk out with a laptop? Who was the dumb fuck at GS that underpaid this guy? Who was the dumb fuck at GS who paid 500 million 10 years ago for a HF trading company?
Anyone here know what the definition of the "right side of the market is?"
LOL.....
Why don't you figure it out???????
I've just found an easy way to describe it. This strategy would be like instead of trading a moving average crossover, it would be to trade the slow stochastics in a shorter time frame. So, I disagree with the idea that it wouldn't work simply because "it's not logical". I wouldn't expect trading a moving average crossover would be any more/less logical than trading the slow stochastics.