A message to some day traders.

Discussion in 'Trading' started by Amahrix, Sep 20, 2019.

  1. imjohn

    imjohn

    I day trade. Have several different signals I’m looking for. Any one of them will get me into a trade.

    Looking now at my records for the last 407 days (about 20 months), the most frequently occurring signal is a “trend pullback” that’s occurred 622 times in my timeframes.

    Once the signal triggers, I enter, setting a Stop at a level thats 1 tick beyond the signal bar, and a profit target at a level that’s equal to 1.5X the size of the stop. I exit at either point. The price hit the target 307 times (49.35%), and hit the stop 315 times. I’ve experienced several streaks (winning or losing) of up to 7 in a row.

    I consider the results entirely random for any single occurrence (or small string of occurrences). For the overall 622 trades, It’s possible that my results could be randomness. I could backtest a prior X amount of days / trades, and discover an entirely different outcome. But I’m content to keep taking this signal (along with my others) into the future until my records show it’s not worthwhile for me to do so.

    Though for it to not be profitable, the win rate would need to drop to 40%, at which point it would be breakeven (negative once I factor in commissions). But anything north of that is ok.

    There are probably a lot of statistical things I should learn about. I think in trading, what you don’t know can definitely kill you. Maybe I'm a lucky fool and will be a net loser in the long run. Time will tell.
     
    #151     Sep 20, 2019
    S-Trader, Slope Trader and birdman like this.
  2. bone

    bone

    LMAO :Do_O Now you’re just showing your ignorance.

    Thaler won the Nobel in 2017 for his work on the limits of human rationality as it relates to financial risk. His academic career was quite literally built on the human perception of financial risk. Literally.

    The dude had a prominent cameo appearance in the movie “The Big Short”. TO FUCKING EXPLAIN RISK. He’s the old dude sitting next to Selena Gomez in a casino. Looking into the camera and explaining synthetic CDO risk.

    :p:sneaky::cool:
     
    #152     Sep 20, 2019
    T-Mex likes this.
  3. Amahrix

    Amahrix

    Thx for sharing your results. 622 times is low sample, run a monte carlo simulation that does it 10,000,000 times and see what the results produce.
     
    #153     Sep 20, 2019
  4. Amahrix

    Amahrix

    Yikes, you're in the deep end.

    Thaler doesn't understand ruin, ergodicity, or risk taking.

    You know Scholes & Merton won Nobels too and look at what their models have done to society. Look at LTCM LOL. Nice nobels, they reallllly know what they're talkng aboutttttt.

    Thaler knows NOTHING about risk. He is not a practitioner, this is why he knows NOTHING. ABOUT. RISK. ZERO. like actually, ACTUALLY ZERO. I want to be literal as possible, he knows ZERO.
     
    #154     Sep 20, 2019
  5. Peter10

    Peter10

    OP clearly doesn't understand a lot about market data... price movement arent just coming out randomly, Price changes only when there is an imbalance between supply and demand...
    Traders that send the buy or sell orders to the exchange don't open orders randomly. They have their reason for choosing to either buy or to sell (remember they are taking a risk)...
    So if you are able to see a reason why more buy orders are coming before it happens, then you have an edge...
     
    #155     Sep 20, 2019
  6. Amahrix

    Amahrix

    Thx for ur theories. Unfortunately for you, reality works a bit different. Sorry.
     
    #156     Sep 20, 2019
  7. MKTrader

    MKTrader

    Sanitized account statement or tax returns...I'm not asking for them, but no one has any reason to believe you unless you have proof. I can claim to make $1 million a day. Would you just accept that?
     
    #157     Sep 20, 2019
  8. Peter10

    Peter10

    ok what is reality?
     
    #158     Sep 20, 2019
  9. MKTrader

    MKTrader

    Not random but no one can see that stuff coming unless you're a serious insider.
     
    #159     Sep 20, 2019
  10. Amahrix

    Amahrix

    unpredictability/uncertainty/not deterministic (but to you short-term data worshippers it is)
     
    #160     Sep 20, 2019