Hedge funds famous for technical trading?

[marketsurfer]

Quote from kmgilroy89:

So are double tops, double bottoms, rectangles, triangles, and wedges no longer profitable? According to my TA Book from 2011 they are very profitable. Many types are said to have over a 2-1 Profit Factor.

They never were profitable--- its all hindsight bias-- the pattern doesn't exist until it completed hence it "works" by default-- just don't try to trade it in real time.

Here's an easy way to think about it-- if you flip a coin 10 times and get heads 10 times, are you in a heads trend?

Just try to trade patterns with a simulated account from thinkorswim or another free service-- you will quickly learn the ridiculous nature of chart based pattern TA-- for anything other than descriptive pictures after the fact.


there is much bad info in this biz from folks that want your money.

surf

PS-- i think even the supporters of TA on this site, real traders, don't use patterns but rather price action and DOM reading to make decisions.....

 

[lassic]

all of them use TA

 

[kmgilroy89]

Quote from marketsurfer:

They never were profitable--- its all hindsight bias-- the pattern doesn't exist until it completed hence it "works" by default-- just don't try to trade it in real time.

Here's an easy way to think about it-- if you flip a coin 10 times and get heads 10 times, are you in a heads trend?


there is much bad info in this biz from folks that want your money.

surf

The idea is that it must break the breakout, once it breaks the breakout level the pattern is confirmed and there is a pre-defined stop loss and profit target. For example, in a double top, the low of the valley between the 2 tops would be the breakout level and the profit target/stop loss could be set at 1:1 taking the distance of the top from the distance of the valley's low.

 

[trend2009]

wow, first time heard that hedge fund does not use TA. my friend's 1B hedge fund is based on TA, and Medallion. de shaw are based on TA, and so on..

Quote from marketsurfer:

no such thing since the 1980's--- the ability to test strategies via PC's has resulted in TA being dismissed as an edge producing tactic.


Hedge funds don't use TA-- and if they do, they go under fast--

surf

 

[volente_00]

Surf, repost your trader video link so we can all watch PTJ use ta for his hedge fund trades.

 

[Equanimity]

Quote from kmgilroy89:

Does anybody have a list of hedge funds that are famous for technical trading? It seems that most of these hedge funds are fundamental by looking at their websites.

Hedge Funds trade on Insider Information. Period!

 

[marketsurfer]

Quote from trend2009:

wow, first time heard that hedge fund does not use TA. my friend's 1B hedge fund is based on TA, and Medallion. de shaw are based on TA, and so on..

LMAO! Shaw, medallion based on TA--- what are you smoking?

 

[marketsurfer]

Quote from Equanimity:

Hedge Funds trade on Insider Information. Period!

information yes, but generally legal or grey area insider info----- not many use blatant illegal insider info-- risks are too high for getting caught today-- based on my experience-----but only the "insiders" know for certain.

 

[newwurldmn]

Quote from trend2009:

wow, first time heard that hedge fund does not use TA. my friend's 1B hedge fund is based on TA, and Medallion. de shaw are based on TA, and so on..

Most systematic macro funds use technical analysis.
Some stat arb funds probably do too.
Even fundamental long/short funds will take technicals into account as they manage their positions.

 

[CT10Gov]

The problem with this discussion is that at which point does technical analysis become quantitative analysis.

Quote from newwurldmn:

Most systematic macro funds use technical analysis.
Some stat arb funds probably do too.
Even fundamental long/short funds will take technicals into account as they manage their positions.