Wow, that attack came out of nowhere
I'm actually curious now haha, what is your strategy (and if you don't mind sharing, performance)? (Not that I'm agreeing with the other poster's post)
Basically, I arrived on my strategy before I opened my brokerage account (actually, my "discovery" was the only reason I actually did open the account).
The basic premise behind this "pseudo-arbitrage" strategy is looking at "mispricings" according to comparisons against other securities and entering and exiting trades at points statistically likely to yield a large enough margin of profit. "Statistically likely" is from my analysis of years of daily data combined with, recently, months of tick by tick data.
It has been working pretty well, and only recently have I been getting more comfortable (cocky? haha) with risking a larger portion of my capital on each trade.
One of my biggest problems has been managing bid/ask spreads as wide as 50 cents. While I still have been profitable, (which I guess attests to an "edge") this has led me to consider other strategies or even other securities from the "favorite" ones Ive been trading. Once I am able to day trade stocks, I hope to get past the obstacle of wide spreads by trading the stocks themselves, but unfortunately this will eliminate the leverage which I feel I need.
Since there is more liquidity and considerably smaller spreads on the stocks themselves, I am also working to make a system that will take care of entering/exiting the actual stocks automatically. Because I will be able to take advantage of the many, smaller mispricings that occur throughout the day (that i cant take advantage of because of the 50 cent + spreads) I actually may be able to be even more profitable.
With regard to technical analysis, how successful do you guys feel things like stochastic, channels, bollinger bands, etc. are? It seems that since everyone uses them there's isn't much advantage? Or is it more like since everyone follows it, it works? Or, similar to Elliot Wave Theory, it's just the natural order of things for it to happen and thus people can take advantage of it?
