Is Quantitative Analysis the only way to get an edge in the market?

[PistolPete]

Even if you found a price action/scalping edge through visual analysis, the speed of price movement in modern markets won't allow you capture it. It must be coded to execute if you plan to seriously daytrade. Longer term PA/TA may still be viable, but exposure risk increases exponentially. I'd still use quant tools, even with longer term outlooks. I just find it much easier to place blame on objectivity vs. subjectivity if things don't ever work out.

No-one mentioned visual analysis so dont put words in my mouth ..

 

[digitalnomad]

No-one mentioned visual analysis so dont put words in my mouth ..

Yep. Jumped the gun here. You definitely didn't

 

[Zzzz1]

where have you been all this time?

Even if you found a price action/scalping edge through visual analysis, the speed of price movement in modern markets won't allow you capture it. It must be coded to execute if you plan to seriously daytrade. Longer term PA/TA may still be viable, but exposure risk increases exponentially. I'd still use quant tools, even with longer term outlooks. I just find it much easier to place blame on objectivity vs. subjectivity if things don't ever work out.

 

[bmw335isedan]

Even if you found a price action/scalping edge through visual analysis, the speed of price movement in modern markets won't allow you capture it. It must be coded to execute if you plan to seriously daytrade. Longer term PA/TA may still be viable, but exposure risk increases exponentially. I'd still use quant tools, even with longer term outlooks. I just find it much easier to place blame on objectivity vs. subjectivity if things don't ever work out.

I disagree, then in your theory even your code is not fast enough to daytrade because there are much faster computer and internet speed available for high rollers.

 

[nooby_mcnoob]

I disagree, then in your theory even your code is not fast enough to daytrade because there are much faster computer and internet speed available for high rollers.

So then execution is paramount, even if you have a good strategy.

 

[speedo]

Is quantitative analysis of past data the only way to get a reliable edge in the market? or can a trader study live price action for long enough to be able to develop a sense for what will happen next?

Yes, forward testing is a good way to go but it takes more time. In fact, observing real time price discovery can be the best education you will get. Had to come back and add comments as the market was moving fast this morning.

 

[algofy]

I disagree, then in your theory even your code is not fast enough to daytrade because there are much faster computer and internet speed available for high rollers.

If you don't try to compete on the sub millisecond level, their superior speed doesn't really matter as much.

 

[speedo]

If you don't try to compete on the sub millisecond level, their superior speed doesn't really matter as much.

I've been day trading manually for going on 19 years. I don't code but will if it becomes necessary. I cut my teeth on the old ER which had price action as fast and violent as any equity futures market today. To the OP, don't let someone's opinion determine what you can or cannot do...and that includes mine. Determine for yourself.

 

[digitalnomad]

I disagree, then in your theory even your code is not fast enough to daytrade because there are much faster computer and internet speed available for high rollers.

You need to understand the pecking order. You don't have to be the first one in, but you'll definitely be the last one in without a good program.

 

[digitalnomad]

I've been day trading manually for going on 19 years. I don't code but will if it becomes necessary.

I don't think it's impossible. The problem is, your signal strength decreases, and risk increases as every second passes. HF firms have this perfected. A retail trader can be semi-perfect and still survive.