Does Technical Trading Really Work?

Discussion in 'Technical Analysis' started by Lloyd W. Coutee, Oct 8, 2015.

  1. dartmus

    dartmus

    NoDoji's methods are perfect candidates for scaling up size because she focused on solving the risk portion of the equation. This makes her methods the exact opposite of what you've disclosed as the underlying reason your method works. You're essentially ignoring risk so naturally your method frightens you when you think about position size.
     
    #71     Oct 10, 2015
  2. Agree. That is why I believe trading is more than trading itself. You have to fight against your greed and always remain calm. Meanwhile, we need to do lots of homework to prepare for whatever would happen.
     
    #72     Oct 10, 2015
  3. Q3D

    Q3D

    Everybody knows scaling up size is Russian roulette.
     
    #73     Oct 10, 2015
  4. Here comes the question: what is your decision based on? Any analysis? Analysis of what? Or just experience or so-called feeling?
     
    #74     Oct 10, 2015
  5. Mtrader

    Mtrader

    I don't ignore risk I think:
    • I have a hard stop so I know my risk before I take a trade already. So no reason to be nervous or frightened.
    • I get every day again confirmation that I control my risk.
    • I have my statistics that cover many years and give me a good idea about probabilities of profits, losses, black swans....
    • I can never lose all I have because I use high margins but with only a small part of my total worth. Wiping out an account three times in a row would never really harm me.
    The only thing that worries me is: can I get out of my full position in a short time?
    Trading 1-10 contract ES is not a problem, but if you trade 100 contracts you have to be already a bit more cautious, depending of what time it is. Trading 500-1000 contracts might be frigthening..... if you want to close them in a few seconds.
     
    #75     Oct 10, 2015
  6. Mtrader

    Mtrader

    Not everybody, only those who don't know what they do.

    Russian roulette depends on two factors:
    1. the person who acts
    2. the action
    Drive at 50 pmh if you never drove a car is much more dangerous than an experienced pilot driving +200 mph in Indianapolis.
    For some people cutting a slice of bread can even be a deadly experience.
     
    #76     Oct 10, 2015
  7. speedo

    speedo

    Chart patterns across time frames and rule-based entries and exits. Experience helps see through the "noise".
     
    #77     Oct 10, 2015
  8. That sounds only basic chart analysis. Does that really work? No info analysis or fundamental analysis?
     
    #78     Oct 10, 2015
  9. dartmus

    dartmus

    The research study you presented recently indicated you focus entirely on the 390 minute per day regular session. There's never a time during that session where slippage associated with large size should be a concern ...unless risk reward ratio is out of proportion as in accepting large risk for the opportunity to earn tiny profits as reasonable and necessary.
     
    #79     Oct 10, 2015
  10. That sounds only basic chart analysis. Does that really work? No info analysis or fundamental analysis?
     
    #80     Oct 10, 2015