Quote from jack hershey:
The thread is on HF who are famous for technical trading. HF do use scintists who are under the dircetion of business people.
The record is clear on HF performance; it happens in several ranges but none do very well.
Back to the OT palaver.
Most posters here are talking about what they do not do.
As I write for publication my chapter 8 is entitled: "The Lowdown on Learning to Learn". it id the last chapter of Part I where I introduce four main foundational topics for being able to read and use the rest of the book.
I continually examine ET'ers to find out what went wroong for them. In learning about anything, a person has to find out when he is doing something wrong. Then he has to figure out what he is doing wrong. The same applies if you are observing others via their communications.
This thread went astray when it was discovered that HF's do not do very well and/or it ws caimed they do not use Technical trading. Stats are technical but they do not serve well the record shows.
I recommend that people take a moment occasionally to find out how their learning process is going. I doumented my learning process in chapter 7 So there was a context for what I recommend for learning how markets work.
The market is like a jigsaw puzzle. I poured the pieces out of the box onto the card table. Some were upside down.
Regression to the mean is not a pice of the market puzzle until you recognize the nead for the tool. It is a tool that could be like all the clouds in a pastoral scene. It is 1/3 of the picture and you can learn to use it as a part of a money making segment. Or you could sit on the sidelines and trade 1/3 of trends as a contrarian.
We all know how to combine Bollinger Bands iwth little shadows to begin and end a trend. But what about the rest of the pieces of the puzzle inbetween these two points and what about it when bollinger bands are not working?
You do have to know how to learn to learn before you take on learning about a body of skills and knowledge. Fortunately, you have had successful learning experiences. BUT have you used these to assure that you are learning as well as you can?
One of the telltales of not being able to learn something is that the pieces are not fitting together.
Take two more boxes of puzzles and pour them on the table.
Let them simulate the three parts of a trend.
There are 56 pieces on the table. One box has 11 pieces another box has 10 pieces and the third box has 35 pieces.
Your mommy has caught you. She tells you just what to do.
She says turn the pieces upside down and put them back in their boxes. You are learning how to learn as you read this post.
If you have three things, the only way to put each thing in the correct box is to know how to sort. then you can work one putting one box together correctly. reversion to the mean is only one box. The name on the box is "RETRACE". It is made by the non dominant puzzle company.
