Volume analysis is to be discarded as it is "too much information"

[StevenBruce]

I suggest that people look at a specific subject or point of view and THINK critically about it.

If you don't agree with my suggestion, I assume you will discard it and procede on your own path.

Works for me

Thanks

 

[MandelbrotSet]

Quote from xiaohu:

I no shill for pfrologic.

I go to http://www.traderslaboratory.com for discussion on volume.

LOL, on so many levels.

 

[limitupmike]

market delta.. lol just a bunch of techno jibebrish with that software that does absolutely nothing to help anyone make money in the market.. duh..

as far as volume is concerned i hope there is enough to scale your trades so that you can one day be as famous of a trader as mandelbro and landis 82!

 

[StevenBruce]

Quote from limitupmike:

market delta.. lol just a bunch of techno jibebrish with that software that does absolutely nothing to help anyone make money in the market.. duh..

as far as volume is concerned i hope there is enough to scale your trades so that you can one day be as famous of a trader as mandelbro and landis 82!

Okay champ, so your first comment is about a piece of software that obviously you don't know shit about.

Your second comment enables us to identify you as a wannabee talking out of his ass.

Thats all I need to know... you have the distinction of being the second person to make my ignore list. Its quite an acheivement tiger since you really have to be a complete motorized dildo to make that list....

Nice talking with you and nicer still knowing its the last time

Adios

 

[MandelbrotSet]

Quote from limitupmike:

market delta.. lol just a bunch of techno jibebrish with that software that does absolutely nothing to help anyone make money in the market.. duh..

LOL

Quote from limitupmike:

as far as volume is concerned i hope there is enough to scale your trades so that you can one day be as famous of a trader as mandelbro and landis 82! [/B]

LOL

 

[black diamond]

So here are the model results I said I would post last week. These results are for 1000 consecutive holding periods. Not fully realistic (no slippage, costs), just some model backtests to make the point so take it for what its worth.

The basic strategy ranks all stocks from 1-10 using signal 1 in every period and goes long the 1's and short the 10s in the next period, equal dollar weights and always in. I'm not saying what the signal or period length are, but the signal is price based and is a variation of a reversal strategy.

The vol filter takes a ratio of each stock's dollar volume in the ranking period to a historical average for that stock and only takes positions in stocks with the ratio in the lowest 10% (cross-sectionally in that period). I use the ranking instead of an absolute value to make it relative to the market, so I am always taking the "best" 10% of all the positions that signal 1 says to take.

Maybe not earth shattering and needs work before being tradeable, but it looks like the vol filter makes a difference.

 

[jjf]

Reading this thread and it's exchanges between posters, has all the humor and sadness of watching two midgets wrestling.

I never know whether to laugh or cry or do both at the same time.

jjf

 

[Xspurt]

Quote from black diamond:

So here are the model results I said I would post last week. These results are for 1000 consecutive holding periods. Not fully realistic (no slippage, costs), just some model backtests to make the point so take it for what its worth.

The basic strategy ranks all stocks from 1-10 using signal 1 in every period and goes long the 1's and short the 10s in the next period, equal dollar weights and always in. I'm not saying what the signal or period length are, but the signal is price based and is a variation of a reversal strategy.

The vol filter takes a ratio of each stock's dollar volume in the ranking period to a historical average for that stock and only takes positions in stocks with the ratio in the lowest 10% (cross-sectionally in that period). I use the ranking instead of an absolute value to make it relative to the market, so I am always taking the "best" 10% of all the positions that signal 1 says to take.

Maybe not earth shattering and needs work before being tradeable, but it looks like the vol filter makes a difference.

Nice effort and something to develop but I'm surprised a backtest worked. I don't know if what I do can be programmed and I sure was not impressed with VSA's signals.

 

[VSAtrader1]

Volume Analysis is actually based on the Wyckoff Method. The theory behind Volume Spread Analysis is that volume leads price action -- not vice versa. I'm using Volume successfully in my trading around 17 years. With Volume Analysis, we can take an in-depth look at not only the current price bar but the previous price bars, as well as the open, close, high and low of the bar. In other words, when looking at the range of the bars, who had more control, buyers, sellers, or was the volume neutral. By using this method we can actually identify when the professional money is entering or exiting the market.

If you look the example from a trade I took yesterday, the volume indicator is showing there are more buyers than sellers in the market, so why would I take a short trade?

So in my opinion Volume is an important element in trading, which helps to indicate what is happening in the market.

 

[TraderZones]

Quote from VSAtrader1:


So in my opinion Volume is an important element in trading, which helps to indicate what is happening in the market.

Wow, 1 post. How can your word be doubted. Which person are you an alias of?