Well, I've been scalping the U.S. Dollar (5 min chart) all morning using the Wyckoff approach. Buying support, selling resistance within the trend. Even more so, calling "price formations" in real-time....no hindsight crap.
Have you used dbphoenix's teachings to become a successful trader?
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Sounds too negative, he was a sponsor here... To his credit, he did point us to the importance of support and resistance which shaped my view from the start, so I haven't entirely wasted that educational expense. Where we part ways is how he made us enter when there's the most slippage (immediately during a break) which was expensive and left us dumbfounded by reversals. An aversion to that era is probably why I love the relative calmness of limit orders now.
No, nooo! The secret is to find a 3.5-second technical discrepency between two ECNs and automate the sh*t out of arbitraging that edge for half-ticks. You know, something consistent that'll work 100% of the time foryears monthsdays to come!
lol...
did u actually "read" what i posted ?
by "statistical" edge u mean like the house edge the casinos have ? like on roulette an blackjack?
u ever heard of visual balistics or card counting ?
edge shmedge ,.. its either skill or a real advantage...
If by "skill" you mean knowing how to collect data and use a calculator, I agree. Otherwise, no particular skill is required. What is required is developing the trading plan, then following it, the latter being where a great many traders stumble and fall.
Sorry I must have missed that bit; I'm catching up on the last 15 years of posts around here so I speed-read... I wasn't trying to laugh at your comment per se, just poking fun in the general direction of all those saying that tape reading is dead now that we're full-blown electronic, full of algos and that the only "edges" (which by the way, everyone has a distinct personal definition for) are ephemeral technical glitches (which for the most part, aren't accessible to retail traders anyway). To me, even arbitrage between the market and a bucket shop constitutes a short-lived gimmick, not a reliable edge. It can vanish in an instant. It should, unless the shop is run by morons who don't notice, in which case they won't stay in business for long anyway, so yeah, short-lived either way.
I guess my personal definition of an "edge" boils down to "whatever works consistently for you". I'll leave it to the experts to argue about whether markets are random and edges illusory (i.e. marketsurfer), as long as my speculation plan works for me.
dear db, can you post backtest results on different type of instruments and compare how well they respect the sla rule ? Because i just cant replicate any significant advantage of sla in index futures.
Don't know what you mean by "the sla rule", but if you find no significant advantage of the SLA over what you're doing now, then there's no reason for you to fool with it.
it does work sommetimes but from purely mechanical implementation the winrate is less then 50 percent and the pf ratio is to low for it to be profitable on nq.
I'm not surprised. It's not a mechanical strategy. And you're into automated trading. Therefore, even if you were to post your plan, I'd have nothing to suggest.
its just a straight line,it should be very mechanical if it works. trending markets like cl and tf it does work better however the pf is still pitifull.