Edward O. Thorp on charting

Discussion in 'Technical Analysis' started by truetype, Feb 20, 2017.

  1. MKTrader

    MKTrader

    I think Thorp's story is much more common that most here want to admit.

    There's a LOT of confirmation bias (as well as other behavioral biases) when it comes to chart-reading. I used to look at charts and think I'd found some amazingly profitable pattern. Then I'd test the idea over a longer time frame with a statistically-significant number of occurrences. It would almost always lose money or be breakeven-ish.

    Also, of all of the self-proclaimed successful "pure price action traders," I've never seen one with a profitable, verified long-term track record.
     
    #11     Feb 20, 2017
    Simples and marketsurfer like this.
  2. MKTrader

    MKTrader

    Maybe to keep others from going down the black hole of chartology (not to be confused with astrology or Scientology...or maybe it is).
     
    #12     Feb 20, 2017
    marketsurfer likes this.
  3. If more traders were uninformed, wouldn't that be an opportunity for you with your superior knowledge of markets? Why stop your potential bread and butter?
     
    #13     Feb 20, 2017
    eganon69 likes this.
  4. MKTrader

    MKTrader

    Where did I claim to have "superior knowledge of the markets"? I have a few slight edges, but I'm no Thorp or Renaissance. Nor are you, chart dude.
     
    #14     Feb 20, 2017
    marketsurfer likes this.
  5. I recommend the book Fortune Formula, which is really about Ed Thorp
     
    #15     Feb 21, 2017
    PoundTheRock, MKTrader and Occam like this.
  6. J.P.

    J.P.

    And you likely never will, as they are astute enough to ply their trade and STFU.
     
    #16     Feb 21, 2017
  7. MKTrader

    MKTrader

    Fixed it for you. It's not like posting results is going to give away their little trendline/hopscotch pattern methods.
     
    #17     Feb 21, 2017
  8. This is 100% correct. it is a complete myth propagated by those who need your money and the unfortunate sad souls who cling to anything that sounds like easy money----
     
    #18     Feb 21, 2017
  9. Daal

    Daal

    What about Paul Tudor Jones? He says never own anything that is bellow the 200MA. That's because he believes that price conveys useful information to make trading decisions, which is pretty much what 'price action traders' do
     
    #19     Feb 21, 2017
  10. I think that information is from the late 1980's. Lots has changed since that time.
     
    #20     Feb 21, 2017