Yeah, but it doesn’t. Index arb/program trading is persistent as the barrier to entry is high and dominated by Virtu, etc. There is no reason to run the TA on cash other than granularity (penny “ticks”) but it’s not executable as the synthetic is not as liquid and the microstructure is poor. And ofc the cash synthetic is going to follow futures but the cash index print will not.
Ok maybe I have just been lucky then when I have used it in the smaller range bars. I mostly trade our local market and in larger size range bars so from your points made it will probably only have a small affect at that level. But thanks for the pointers anyway.
Sure, just think about execution. Single names are executable at the print, less NBBO spread, but index isn’t instantly-trade-able and fills will meet futures anyway.
I'm not even sure what I'm looking at. Price sometimes trends and sometimes ranges. What are the stats on this system of your working? What is your risk parameters? It isn't enough to just look at one chart with zero context and be expected to develop a system. Buy signals seem to be after 2 consecutive up bars on the range chart. Are you exiting a long position when the sell signal comes in and then going short or are you just exiting after the first down bar (the red dot)?
Sometimes the market trends nicely (trend continuation, trend reversal). Such a market is easy to trade. Unfortunately, most of the time, the market moves in a choppy chaotic trendless manner. This is where it is very difficult to profit from the market.
I never understood why everyone is so cryptic. Either everyone is an asshole or no one has any idea what they're doing. Trading communities remind me of poker communities: selfish and arrogant. Thanks to everyone that posted something worthwhile. I won't be back. I'll figure this out myself. I'm literally getting comments/advice/strong convictions from people (I checked post history) that aren't even profitable yet.... Not sure why they would even comment.
Now you are starting look at it great. I'm trying to get you to think for yourself you said you had problems knowing which way the market was going well range bar charts is one way to help. I have attached another chart what do all the highlighted down bars have in common? Cmon man think, you will have better chance of success if YOU develop something than trying to copy off someone else. I'm just trying to get you to look at it a different way.
Considering the question in the OP this thread needs more YTD P&L statements and performance figures. So far, I was the only one who shared anything specific, and while nothing to brag about, at least I'm keeping things transparent. Rest assured, if I will be able to keep growing my account I will brag about it and share once again at some point. If not, assume I blew up.