Hedge funds famous for technical trading?

Quote from CT10Gov:

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

I have spoken with a guy who was a consultant to some of the most famous funds out there. He made a few of them profitable.
He did not call what he did t/a but it was.

There is no doubt plenty of funds use t/a... if only to figure out the size and time for their trades.

For instance if they need to get big orders done... how do they figure it out. Well some explain opening and closing and reports and round numbers and scaling in and out around support and resistance areas.

A big fund cant just walk in and say I want to trade now. They have to be smart... they look at charts. (although I suppose we dark pools its getting easier.)


Its ridiculous to think funds do not use t/a. When I read about surfs buddy vn... say he does not believe in trends but he does mean reversion trades... I here that T/A does not work but mine does.

Stats are t/a.
 
Quote from CT10Gov:

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

exactly-- it becomes quant when its tested and quantified-- too bad pattern and chart TA can't be tested hence it always belonging to retail and other mystics. surf
 
Quote from jem:

Stats are t/a.
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I disagree. My personal definition is that TA is doing stats like computation without applying the theories of statistics.
 
Quote from marketsurfer:

exactly-- it becomes quant when its tested and quantified-- too bad pattern and chart TA can't be tested hence it always belonging to retail and other mystics. surf
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It could be quantified, but it would take a long time to code chart patterns.
 
Quote from jem:

correct.



Stats are t/a.
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Wrong, Jem. No disrespect meant, but this is not correct. If you use stats you don't need "charts" and "patterns"-- which are the fundamental tool of technical analysis.
 
Quote from marketsurfer:

Wrong, Jem. No disrespect meant, but this is not correct. If you use stats you don't need "charts"-- which are the fundamental tool of technical analysis.
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what? are you kidding me? now I understand why you keep saying t/a does not work. you have no idea what a chart is supposed to do for traders who make money.

a chart should give us the same info as a stats trader and more.

stats are tracking historical performance and activities.
that is t/a.

for instance
the indicators many use are just a graphical representation of stats.



----
http://www.investopedia.com/terms/t/technicalanalysis.asp#axzz2HJUnngyW


Definition of 'Technical Analysis'
A method of evaluating securities by analyzing statistics generated by market activity, such as past prices and volume. Technical analysts do not attempt to measure a security's intrinsic value, but instead use charts and other tools to identify patterns that can suggest future activi

Read more: http://www.investopedia.com/terms/t/technicalanalysis.asp#ixzz2HJXLbxNe
 
Quote from CT10Gov:

This is a rather simplistic view of stats.
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but even complicated views of stats are still t/a. even if they could not easily show up on a chart.

1. lets say you developed a reversion to the mean program to arb stocks back into line with the futures.
you could use a spreadsheet or an app
or you could use a chart
they are both t/a.


2. some very complicated option stats can still be represented graphically.

3. when at stats not t/a?

Essentially the stats vs T/A debate was really marketing.
stats are part of T/A.
 
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