The only thing I use technical indicators for... (Ocean5 Read)

R

RangeTrader

Technical indicators are good for a few things...

1. Programming them and working through the math keeps my mind sharp.

2. The math of the indicators strips out my emotional bias. (This is really the most important part.)

3. They lessen the brainpower required to calculate things out in my head or on paper. I can just jump in and glance at a few readings and I know whats going on instead of having to sit watching the market for a while to figure out what is going on.


The bottom line is... If you never have any emotional bias, have a good brain for statistics and math, and watch the market all the time... You don't need technical indicators for trading.

It gets quite exhausting watching the market every day minute by minute. Glad I don't have to do that anymore to effectively trade...
 
Quote from RangeTrader:

Technical indicators are good for a few things...

1. Programming them and working through the math keeps my mind sharp.

2. The math of the indicators strips out my emotional bias. (This is really the most important part.)

3. They lessen the brainpower required to calculate things out in my head or on paper. I can just jump in and glance at a few readings and I know whats going on instead of having to sit watching the market for a while to figure out what is going on.


The bottom line is... If you never have any emotional bias, have a good brain for statistics and math, and watch the market all the time... You don't need technical indicators for trading.

It gets quite exhausting watching the market every day minute by minute. Glad I don't have to do that anymore to effectively trade...
More...

Thank you for sharing your thoughts.Another way could be is to automate things.But you need the proper thing,no doubt.
 
Quant funds always eventually get blown up by black swans. Mathmatical based funds were making a KILLING from 2003-2007... Then most of them completely blew up in 2008 in the big crash.

A few of the good ones survived. They had good managers at the top who understood systemic risk and when it was time to turn the systems off...


Truly highly effective automation that accounts for all variables needs some kind of AI to assess the effects of news upon market momentum.

I know there is some mathematical tricks to do it based upon momentum/volume calculations at news releases... But computers cannot calculate out the effects of Merkel/Mario speeches very well.


I am just personally not interested in getting heavily into quant trading math... It's just not necessary, and I like to keep trading somewhat fun...
 
Quote from RangeTrader:

Quant funds always eventually get blown up by black swans. Mathmatical based funds were making a KILLING from 2003-2007... Then most of them completely blew up in 2008 in the big crash.

A few of the good ones survived. They had good managers at the top who understood systemic risk and when it was time to turn the systems off...
More...

Probably becuase Quants were using mean revert strategies and were using no stops whatsoever.I have the same problem i use the meant revert strategy and don`t use stops.Black or not that black - Grey Swans are killing me!Sh!t!!!!!
 
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