Registered: Feb 2009
05-19-09 07:38 AM
I have no idea why the local trolls have stayed away. Perhaps they have been learning something new?
As for your comment about value areas, my experience has been quite different, and although I do trade the value areas as well as many other market profile derived numbers, I am pretty sure that my approach is different from most. Although I am not willing to give the details what I can say is simple.
Index futures markets are very noisy. Most retail traders do not fully appreciate how that noise affects them and their attempts to make money. Rather than go through the tedious math, I will sum it up as follows. No matter what single system a trader develops....no matter how carefully he or she "tunes" and tests their approach, their edge, their indicator blah, blah blah....no matter what...the market is going to cycle in and out of alignment with that strategy.....I don't care how smart a trader is, how much data they test on, how crafty they are with indicators...ITS GOING TO HAPPEN.
So I don't trade single use systems. Instead I monitor a range of data elements and use the principle of confluence. In other words I look for areas to trade where multiple "signals" exist either in the same place or in proximity to each other. Doesn't eliminate the problem, but it does minimize its impact on my P&L.
Have I ever traded with cash?....except for options positions, in our office we trade on margin.
Thanks for your questions.