forex and TA? why would it work?

[R1234]

Quote from TraderZones:

But ask for serious proof or show evidence it doesn't work, and the wails are loud and the beliefs die hard.

http://www.autumngold.com/Advisor/Statistics/cta_profile.php?id=429

http://www.autumngold.com/Advisor/Statistics/cta_profile.php?id=107

I don't trade technicals, I trade econometric models. But I do think technicals work over the long term.

The above two links show performance of a couple of big CTA firms that trade exclusively technicals, and have been doing it for many years.

 

[achilles28]

I'm glad so many traders doubt TA.

Seems like its almost 90%.....

 

[speres]

Quote from Eric215:

All of the information is in the price, or more accurately, in how the price moves in relation to the losing majorities opinion of where it will move. There are ultimately many factors which determine how and where the price moves but, on average or better yet the majority of the time, price WILL move in the opposite direction of where the majority of losing traders have placed their positions. So, then the question becomes, how do we determine where the losing majority is positioned? This comes from experience, knowing how the average retail trader analysis the market, and being able to frame the markets in a way in which it allows you to take advantage of the losing majority. To the trader who understands this concept and has developed a way to exploit it, there are at least 2-4+ opportunities everyday to profit from. I can go into this more later, as I am walking out the door to go play poker. I can get back to this topic later.

The only decent post so far..

what the op doesnt realise is that a market has to be made and its been going on for decades.

 

[intradaybill]

Quote from sysre:

http://www.autumngold.com/Advisor/Statistics/cta_profile.php?id=429

http://www.autumngold.com/Advisor/Statistics/cta_profile.php?id=107

I don't trade technicals, I trade econometric models. But I do think technicals work over the long term.

The above two links show performance of a couple of big CTA firms that trade exclusively technicals, and have been doing it for many years.

Interesting data. The first advisor has a much smaller drawdown but assets have been declining as opposed to the second who has more than 25% max drawdown but assets have been rising.

 

[cabletrader]

Quote from TraderGreg:

All that matters is what works in practice.

We have a winner!

How can anyone knock a strategy, no matter what it is, if it works for the user and consistently produces results.

 

[bugscoe]

Quote from cabletrader:

We have a winner!

How can anyone knock a strategy, no matter what it is, if it works for the user and consistently produces results.

Exactly.

This is what is so funny with all these forums, these people who come with absolutes about what does and doesn't work.

These are the people to ignore.

 

[aceholic]

Quote from sjfan:

People here seem to like to use TA for trading forex. I don't understand the basic logic of why TA would work for forex (or anything else, but let's keep the focus on TA).

TA is a graphical/mathematical depiction of mass psychology. And more recently, it's a depiction of the automation created to take advantage of mass psychology.

People tend to think in patterns and act in patterns. TA shows it and gives you the possibility to exploit it.

 

[cocaineaddict]

The most important aspect of fx trading imo is def controlling the amount of leverage you use for your trades

Most traders I know do very well with only using 30x their capital since they are fairly adept at technical analysis