Surf's Special Situation Journal

syswizard · Nov 6, 2012

Quote from marketsurfer:

Scalping has huge money too, it just flows away from you and into the markets machinery--- why would anyone want to be involved with such a pursuit with a negative edge built in. not to mention HFT competition?

Scalping is harrowing to say the least. I did it once, and what a rush ! That being said: In the end it wasn't worth it.
Today, this is done by HFT algos....and it works great....for them.
No emotion in software !

marketsurfer · Nov 6, 2012

Quote from cornixforex:

It depends on what we call scalping of course. What NoD does I believe has edge, but certainly is not scalable to millions. Agree with you on HFT, pretty stupid to compete with it, but I like the liquidity bots provide in FX last years.

What's a liquidity bot? I have not heard this term.

thanks! surf

marketsurfer · Nov 6, 2012

Quote from syswizard:

Scalping is harrowing to say the least. I did it once, and what a rush ! That being said: In the end it wasn't worth it.
Today, this is done by HFT algos....and it works great....for them.
No emotion in software !

Yes, regardless of what the NODOJI types say or believe-- the HFT algos are constantly changing and morphing-- they do not repeat over and over again-- if they did, predatory algos would kill the repeaters-- SO, i am at a loss at exactly what these folks are doing who rarely have a losing day trading in this style. What's claimed and market truth are opposed.
surf

PS-- other than simply being skilled at money management.

cornix · Nov 6, 2012

Quote from marketsurfer:

What's a liquidity bot? I have not heard this term.

thanks! surf

Sorry that's my poor English grammar. I mean the liquidity which is added by the algos lately is quite cool.

cornix · Nov 6, 2012

Quote from marketsurfer:

Yes, regardless of what the NODOJI types say or believe-- the HFT algos are constantly changing and morphing-- they do not repeat over and over again-- if they did, predatory algos would kill the repeaters-- SO, i am at a loss at exactly what these folks are doing who rarely have a losing day trading in this style. What's claimed and market truth are opposed.
surf

PS-- other than simply being skilled at money management.

Well, bots change of course, but certainly not every day. They only change as often as coders change them, right?

marketsurfer · Nov 6, 2012

Quote from cornixforex:

Well, bots change of course, but certainly not every day. They only change as often as coders change them, right?

No, friend, many are programmed to evolve and change constantly--that's what they do--- -- what you are talking about was finished about 4 years ago. what needs to be understood is anything that is repetitive in the market can not last, this should be common sense.
surf

R. Raskolnikov · Nov 6, 2012

Anything that is overtly obvious or easy to spot and that is repetitive, won't last. But that which is not and that repeats can last for years and years. This has been my experience.

Quote from marketsurfer:

No, friend, many are programmed to evolve and change constantly--that's what they do--- -- what you are talking about was finished about 4 years ago. what needs to be understood is anything that is repetitive in the market can not last, this should be common sense.
surf

cornix · Nov 6, 2012

Quote from marketsurfer:

No, friend, many are programmed to evolve and change constantly--that's what they do--- -- what you are talking about was finished about 4 years ago. what needs to be understood is anything that is repetitive in the market can not last, this should be common sense.
surf

Probably, I am not specialist in bots. But market behavior doesn't really change that fast. It certainly changed since 4-5 years ago, but slow enough for us humans to adapt.

cornix · Nov 6, 2012

Quote from R. Raskolnikov:

Anything that is overtly obvious or easy to spot and that is repetitive, won't last. But that which is not and that repeats can last for years and years. This has been my experience.

I concur. Same patterns show up over and over again, some of them being extremely high probability trades.

syswizard · Nov 6, 2012

Quote from R. Raskolnikov:

Anything that is overtly obvious or easy to spot and that is repetitive, won't last. But that which is not and that repeats can last for years and years. This has been my experience.

Interesting comment. I remember when I had backtested the Donchian strategy a few years ago, it had an incredibly consistent equity curve upwards....even with the choppy S&P 500 emini contract. I wonder if that's no longer the case.