Video , why do indicator based systems fail.

A traders most important study/analysis they can do is not on the charts but on themselves. The ahaa moment in my trading was when I turned the spotlight away from the charts and pointed it right at me.
 
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nickynoes said:
Indicators can be simply described as mathematical formulas.

In math, if you attempted to solve the problem of calculating the area of a circle by using Pythagoras equation you would not succeed. Similary if you are attempting to apply an indicator in a situation or for a purpose it was not designed to work you will also fail.

If you want to learn to use an indicator properly you must either first design a system where the application of the indicator would be beneficial in reaching the systems objectives, or by reverse engineering the process by learning how and when the indicator was designed to fulfill its purpose and then choosing situations where it can be applied.

Either way, I recommend everyone who uses indicators to intimately study it, to the point you could even program it yourself if you wished.
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A Very Valid Point.
 
Everybody who says indicators, or technical analysis, and/or whatever else in trading fails...are strangely coincidentally the same bonehead/meathead people...who just happen to be failing themselves, or are just not simply profitable, or fruitfully profitable in this endeavor. o_O

Trading is an incredibly complex, dynamic...organism, or puzzle game, or chess game, or war.
If you are a flat, fixed brain person...chances are you won't enjoy or succeed in the long, overall run of trading.

We're all just basically predicting the future of the broad market, SPY/SPX/ES.
I would hypothetically challenge anyone to a daily prediction/trading/management game of the broad market.
I'm 90% confident I would beat most people here at ET at that.
I guess you can kind of say it's part art, part science.
 
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lawrence-lugar said:
Everybody who says indicators, or technical analysis, and/or whatever else in trading fails...are strangely coincidentally the same bonehead/meathead people...who just happen to be failing themselves, or are just not simply profitable, or fruitfully profitable in this endeavor. o_O
Trading is an incredibly complex, dynamic...organism, or puzzle game, or chess game, or war.
If you are a flat, fixed brain person...chances are you won't enjoy or succeed in the long, overall run of trading.

We're all just basically predicting the future of the broad market, SPY/SPX/ES.
I would hypothetically challenge anyone to a daily prediction/trading/management game of the broad market.
I'm 90% confident I would beat most people here at ET at that.
I guess you can kind of say it's part art, part science.
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Bottom line is, how much did you bank and about what % was that on capital, last 12 months approx?
 
themickey said:
Bottom line is, how much did you bank and about what %
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I banked nothing. I'm a paper trader. I work at Starbucks and Home Depot part-time while I'm studying at an online college for my Real Estate Degree with a minor in children's sociology and live with my parents.
But in my paper trading account...I turned $10,000 into 97 million. and this is my crowning achievement in life.

I blew up my previous $5,000 trading account three times already. -- But this time, it's different...I have an Edge,
And this Edge...will Shock The World,
I call my edge, Razzle Dazzle Nuclear Bomb Universe options compounding daily.
King KONG....Ain't GOT Nothing on Me.

I buy my boxed wine from Walmart.
I plan to write a book, titled: Make Trading and Your Life Great Again.
and I plan to launch my own trading school, called: Lawrence Trading.
and I plan to lose my virginity in 2018. even if i have to pay for it.
as soon as I get rich from trading...I'll buy a Ferrari 458. and a Patek Philippe Tourbillon watch. and a very high-end $20K espresso machine. and $2,600 alligator boots.

I just took a big dump and fresh shower. and gave myself a haircut and shaved my body and brushed my teeth.
and scraped about 7lbs of my beagle's dog shit off of my backyard. :vomit:
But my life is looking up...because I found Moses and Jesus and etc misc spiritual things.
Mazal tov,...High-Five`
I wish I had a girlfriend and life, instead of spending all of my time on ET, with these losers who are only making 5% every year.
 
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In my experience, the more complex an indicator is, the less likely it is to work. Systems based on simple indicators can be very robust and do work. Look at 2-period RSI for example.
 
lawrence-lugar said:
I banked nothing. I'm a paper trader. I work at Starbucks and Home Depot part-time while I'm studying at an online college for my Real Estate Degree with a minor in children's sociology and live with my parents.
But in my paper trading account...I turned $10,000 into 97 million. and this is my crowning achievement in life.

I blew up my previous $5,000 trading account three times already. -- But this time, it's different...I have an Edge,
And this Edge...will Shock The World,
I call my edge, Razzle Dazzle Nuclear Bomb Universe options compounding daily.
King KONG....Ain't GOT Nothing on Me.

I buy my boxed wine from Walmart.
I plan to write a book, titled: Make Trading and Your Life Great Again.
and I plan to launch my own trading school, called: Lawrence Trading.
and I plan to lose my virginity in 2018. even if i have to pay for it.
as soon as I get rich from trading...I'll buy a Ferrari 458. and a Patek Philippe Tourbillon watch. and a very high-end $20K espresso machine. and $2,600 alligator boots.
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Cool, you made more than me, all I managed to make was a pair of wool sox I knitted.
 
Cycles are dynamic, expanding and contracting but short term in nature as far as being reliable enough to base trades on.

Otherwise for the most part are illusive. One minute there ... working, next gone.
 
Cycles can not form a basis for a mechanical trading system, and should be applied solely as an aid by discretionary traders.
 
Scataphagos said:
I'm a K.I.S.S. player. I don't pay attention to "chart/indicator anything" which doesn't meet my criteria for simplicity. Trading is difficult enough even with K.I.S.S.
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If I'm being too nosey just ignore, but may i ask ... What do you use? Maybe Support & Resistance, Price Action and nothing more?

I've probably missed you telling somewhere earlier, but i do notice the smarts in your replies. I would enjoy knowing your thoughts. Thanks!
 
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