I have bought Al Brooks' Trading Course

[Visaria]

Anyway update on Brooks's video course: interesting concepts, not wholly convinced of the application to real trading YET...but haven't seen those specific videos on how to trade...still on basic price concepts atm

 

[marketsurfer]

btw, NONE of them day trade. Anyone mentioning 1 minute bar charts would be laughed out the room.

Many hedge fund managers dont know much more than folks with money. Others are trust fund kids who want a "job" they can talk about at parties. Heck, one hired me to teach them TA from this site. Lol.

Yeah, the 200 day SMA is likely they are lookng at. But this is to put the different markets into context against one another-- not to make short term decisions.

 

[Visaria]

The guys i know are ex goldman and other IB prop traders who were made redundant after volcker rules....all use TA in some form. Not just TA of course....

Anyway Soros uses TA, Druckenmiller uses TA, PTJ uses it...only VN doesn't and he keeps blowing up! Perhaps you should teach him some - or refer him to Al Brooks lol

 

[Visaria]

Also your friend, LBR is a huge advocate of TA....isn't she the president of the market technicians society?

 

[marketsurfer]

Also your friend, LBR is a huge advocate of TA....isn't she the president of the market technicians society?

Not sure. Linda is a great lady, we get along fabulously despite this small disagreement!

I concur with pTj trader trainer Dr.Brett Steenbarger.

"We use TA as a way of framing hypothosisis about the market--- not as a collection of conclusions"

That is the paraphased version of his answer to me when i asked him directly about TA. I was not given permission to qoute him directly.

Dr Brett makes sense.

surf

 

[Alpha Trader]

So a 60% chance of a profitable result.



Making a trade with these odds once using all capital would be a gamble. But using a small fraction of capital and repeating hundreds of times would lead to near certain success.

@JTrades just a little clarification. It's actually a 60% chance that the trade will tip in your favor as opposed to a profitable result.

Once in your favor, as they say, let your winners run. If not, than the losses are cut fast and dry.

In math terms,

60 x $1.00 (winners run) = $60

40 x $0.20 (cutting losses short) = $8

So even with the 60:40 ratio, the odds in your favor (on average) tend to be 7:1 making it a decently comfortable system.

 

[Alpha Trader]

View attachment 156709

Very informative post @londonkid

Surely it can't be as simple as setting an algo shorting at +40 and going long at -40 can it? :eek:

 

[londonkid]

Very informative post @londonkid

Surely it can't be as simple as setting an algo shorting at +40 and going long at -40 can it? :eek:

not sure if you are pulling my chain. It's dealer inventory on the chart not price.

 

[Alpha Trader]

not sure if you are pulling my chain. It's dealer inventory on the chart not price.

Hey @londonkid I wouldn't be one to yank anyone's chain. I can see why you thought that after reanalysing my post tho ; it's still very early in the morning here in Florida.

 

[Visaria]

@JTrades just a little clarification. It's actually a 60% chance that the trade will tip in your favor as opposed to a profitable result.

Once in your favor, as they say, let your winners run. If not, than the losses are cut fast and dry.

In math terms,

60 x $1.00 (winners run) = $60

40 x $0.20 (cutting losses short) = $8

So even with the 60:40 ratio, the odds in your favor (on average) tend to be 7:1 making it a decently comfortable system.

wow, are u trading a method that gives you numbers like these? i tend to agree with brooks who says closer to 1:1 at 60%.