Why do 5% of Traders Win?
- Thread starter oldtime
- Start date
Quote from krittika:
There is nothing wrong to look at a chart.Some people are actually making big dough by reading the chart.wtf???
I did not say that they didn't, I said that the concepts ... such as data-mining (which is what an algorithmic traders uses to find an edge) is new to someone who is looking at a chart...in particular the member I quoted.
That's the difference in a discretionary trader and a systematic trader / algorithmic trader that uses probabilities to find an edge.
I don't know why one would rather look at a chart than have a computer gather the facts and data for you to determine the probabilities of something working out or not...but they do. And many certainly are good at it!
A computer can be programmed to test many different scenarios and tell one what works best and it can do it extremely fast.
UH, no they don't.
The program reads the data to determine if something will work or not...no need for a chart.
For example, I can determine a number for almost any stock that would tell me if it moved away from the open by this amount, it has less than a 30% chance of going back to the open and in the opposite direction by the same amount. I don't need a chart to do this...it takes less than 20 seconds for me to determine and my program looks at 10+ years of data to determine this number.
