If TA doesn't work then why?

[pclark]

Are there ton's of companies looking for Algorithmic programmers and Quantitaive analysysts with programming skills and proven strategies? You would think these large companies know what they are doing. So why is there such an argument on here about it?

Paul

 

[kut2k2]

Quote from pclark:

Are there ton's of companies looking for Algorithmic programmers and Quantitaive analysysts with programming skills and proven strategies? You would think these large companies know what they are doing. So why is there such an argument on here about it?

Paul

Quants usually don't consider themselves to be technical analysts. I've heard one key difference between the two is techs usually look at price whereas quants usually look only at returns, but that's just something I've heard, not conformed.

 

[bespoke]

quants dont use TA in the sense that you're thinking about.......

 

[jeb9999]

The vast majority of traders using TA do not have indepth knowledge of probability and statistics, but quants do. There is TA and there is TA.

 

[TraderZones]

Quote from pclark:

Are there ton's of companies looking for Algorithmic programmers and Quantitaive analysysts with programming skills and proven strategies? You would think these large companies know what they are doing. So why is there such an argument on here about it?

Paul

I don't think the large companies are hiring people for their "trading edge". Usually, the company has its own strategies.

 

[dave74]

This is a zero sum game.

It's simply not possible for everyone to be using the same techniques and make money.

Also, the game is always changing.

 

[Hook N. Sinker]

Quote from pclark:

large companies know what they are doing.

Hehehe

Perhaps you are referring to Bear Stearns (where are they now?), Merrill Lynch (MER), BankAmerica (BAC) or Fannie Mae (FNM)?

 

[yoohoo]

Quote from Hook N. Sinker:

Hehehe

Perhaps you are referring to Bear Stearns (where are they now?), Merrill Lynch (MER), BankAmerica (BAC) or Fannie Mae (FNM)?

ROTFLMAO

At least Leh know what they are doing... don't they?

 

[raker]

I think you need to distinguish between Technical analysis and algorithmic/quantative analysis ...

In their very general sense TA usually refers to moving averages oscilators like RSI and Stochastics and various chart patterns...

Algorithmic/quantative analysis dlves deep into all forms of data mining.
In relation to trading stocks and baskets of stocks the research starts with transaction cost analysis where by the fund manager wants to know how much buying a particular baskets of stocks is going to cost him . So using a historical database of volume , spread and volatility of the instruments to be traded a pre-trade estimate can be attained within a resonable standard deviation of error . Then over the course of trading various algorithms try and disguise there buying and selling activities to minimise the total cost of the trade, and try get as close to a benchmark such as vwap.

THis of course is very broad and there are other forms of algo trading. But it is not technical analysis in the general sense..

 

[ammo]

if you trade on the floor or in a group of traders in an office,you can feed off the herd mentality without TA,if you are trading from home,basically in a cave,little clue to the outside world,very limited compared to the amount of info out there,you need to draw lines and find general areas of support and resistance,this is TA.It wors.. At some point ,after many hours,days ,months,years,you get an inate sense of the markets direction,once you've reached that "aha" point you start to run around and tell everyone you don't need TA,it doesn't work. The fact that tons of TA was used until you got this point is always left out of the proclamation.