Toby Crabels " Day Trading with Short Term Price Patterns and ORB"

Quote from Aaron:


...Schindler Trading uses behavioral finance/sentiment indicators...
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Can you give an example of a "behavioral finance/sentiment indicator" ?

nitro
 
Quote from traderkay:

BTW, Aaron, I have a lot of respect for you and would like to know your opinion. You think that strategies looking solely at price don't really cut it today?
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The only CTA's that are making money using purely price based indicators are the diversified, long-term trend followers. All the other profitable ones that I've looked at are using something else in addition to price.

I know you hear a lot about intraday, priced-based "scalping" on ET, but I can't think of any CTA's doing this. My guess is that it isn't profitable in the long run -- too little signal, too much transaction costs.
 
Quote from nitro:


Can you give an example of a "behavioral finance/sentiment indicator" ?

nitro
More...

Sentiment indicators show what the market participants expect will happen. Put/call ratio, implied volatility, price of gold & crude, hi-yield/treasury spread, the yield curve, cover of magazines, etc.

And the study of behavioral finance is the study of human weaknesses and irrationalities in investing. Behavioral finance will help you look at the sentiment indicators and see irrational, unlikely expectations and take the opposite position. The "new contrarian" you might say.
 
Quote from Aaron:



Sentiment indicators show what the market participants expect will happen. Put/call ratio, implied volatility, price of gold & crude, hi-yield/treasury spread, the yield curve, cover of magazines, etc.

And the study of behavioral finance is the study of human weaknesses and irrationalities in investing. Behavioral finance will help you look at the sentiment indicators and see irrational, unlikely expectations and take the opposite position. The "new contrarian" you might say.
More...
Geeesus,

I use all of these...I did know I was a behavioral finance trader...

nitro
 
Hi, Aaron
You were talking about
"Sentiment indicators show what the market participants expect will happen. Put/call ratio, implied volatility, price of gold & crude, hi-yield/treasury spread, the yield curve, cover of magazines, etc.
And the study of behavioral finance is the study of human weaknesses and irrationalities in investing. Behavioral finance will help you look at the sentiment indicators and see irrational, unlikely expectations and take the opposite position. The "new contrarian" you might say."

I'm very much interested in what you're talking about and wanting to look into this much more. Do you have any particular resources you've found useful in this regard? Thanks.
 
Perhaps this is in the wrong thread, and we can start a new one, but in regard to behavioral finance just started to look into this more and did find a few links in case anyone's interested.:)
http://www.investorhome.com/psych.htm
http://groups.yahoo.com/group/Behavioral-Finance/
http://www.richard.peterson.net/buyontherumor10.html
http://faculty.haas.berkeley.edu/odean/
and http://faculty.haas.berkeley.edu/odean/papers/overconf/DoInvestors.pdf
http://poweradz.investopedia.com/articles/02/112502.asp
http://gsbwww.uchicago.edu/fac/nicholas.barberis/research/bf5b.pdf
http://www.futurespartners.com/articles/traders/pruden.html
PS This is why my trading stinks. Staying up too late to research things like this. :) Kidding.
 
Are Toby Crabels trading methods really that great that such a high price can be demanded for his book? The book might be copyrighted but I wouldn't think that his trading methods are copyrighted. Are there any books out there that tell about a similar trading system? Is his system summarized somewhere on the net? Why doesn't someone write a book telling about the system if they can get $500 a copy?
 
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