After using this trading simulator I'm convinced technical analysis simply doesn't work

Discussion in 'Technical Analysis' started by nxt7, Mar 12, 2016.

  1. i960

    i960

    It's not synthetic data - read the description on the site. They're real charts.
     
    #31     Mar 12, 2016
    dartmus likes this.
  2. dartmus

    dartmus

    Thanks, I wasn't referring to the data on that website. BotPro uses synthetic data. Sorry for the misunderstanding.
     
    #32     Mar 12, 2016
  3. dartmus

    dartmus

    Well said. Very perceptive.
     
    #33     Mar 12, 2016
  4. Bravo! It is a set of tools not a black box predictive trading machine. Most people cannot comprehend this simple idea.
     
    #34     Mar 12, 2016
  5. Handle123

    Handle123

    Obviously, I use indicators way differently than you. You have to learn charting better than you know anything in this entire world, and then you need to completely understand what formula of whatever indicator is and what it is to do, then watch the indicator with price, in a few months, you should be able to know what the indicator will do before it does it. Indicators for me are quicker ways to examine charting. If I took the indicators off my charts, I would have to concentrate harder but have close the same results of if they were on the chart, indicators make it more simple for me, I don't have to add or subtract volume or open interest. You watch enough charts and know when there is divergences or trend, S&R, etc etc etc...

    You really have to do 10,000 hours of going over past charts to know what to do in the future, pull up your sleeves and start back testing ideas.
     
    #35     Mar 12, 2016
    lostman007 and clightmarathon like this.
  6. trader99

    trader99

    Thanks for pointing out this website. It's cool and FUN game! I actually beat buy and hold on every single game I've played except for one. I only played 4 games. Perhaps if I played more then I will not continue to beat buy and hold.

    But it was nice to see validation of my trading methods. :)
     
    #36     Mar 13, 2016
    clightmarathon likes this.
  7. nxt7

    nxt7

    How many indicators do you recommend to have on screen at any time?
     
    #37     Mar 13, 2016
  8. DDR

    DDR

    It's comical when ever a poster states T/A or Fundamentals doesn't work.
    The facts ARE that a professional trader will use all 4
    T/A, FUND, MARKET TONE, EVENTS
    And that's all there is to this gig nothing more, it's not complicated rocket science.
    Unfortunately this topic gets rehashed 10's if not hundred's of times, it should be moderated much more strict to not allow wallow and pave a path for "elite" based topics. What a waste of time over and over. My 2 cents and yes I will stop reading these pathetic arguments.
    I will say I thought 2016 would be change in the quality of content for EliteTrader, obviously not.
     
    #38     Mar 13, 2016
  9. Ferdinand

    Ferdinand

    That is a fun game.

    It seems like you can only trade off one price based on the daily chart, whereas live you can close out mid day, or close half your position, etc.

    Anyway the initial post seems to indicate that technical analysis should always provide an answer of what you should be doing but I would argue quite often you should be doing nothing. So in that game there is lots of pressing "time-lapse" while flat, waiting for something to set up.

    Even then, technical analysis doesn't tell you what WILL happen, it tells you what might or is most likely to happen. This is where risk management comes in: when wrong, cut.

    I think these are things many traders struggle with for a long time.

    Be patient, spend a lot of time flat, wait for a set up, and when you do enter, cut ASAP when the set up is invalidated.

    Easier said than done.

    How many times have I wished there was a "time-lapse" button for the live market!
     
    #39     Mar 13, 2016
    shihpinlo and K-Pia like this.
  10. imo you have not taken onboard the true competition nature of trading. TA is a set of tools. You seem to have applied the tools in the 'mainstream' way and found they dont work. This is exactly the result you should expect.
     
    #40     Mar 13, 2016