Financials continue to look excellent here and poised for a huge run-up. Looking real good in my view.
How did you infer that I missed that point? I'm no expert on algorithms, but I'm quite sure they range from very, very basic to quite complex and elaborate. Some algorithms are HFT - others are not. The point I was making is merely what I'm repeating above which is that algorithms are as varied as everything else in the markets. As such - it's hard to generalize the resulting behavior from algorithms. But feel free to elaborate on your clam that algorithms are being based on traditional price behavior and not complex calculus.
Of course they are varied. Institutions have their own trade plans but they are all written by people who are examining price action, retracement levels, measure move targets, stair step patterns etc etc. If you understand price, you can discern what algo's are doing what at critical levels....that's it over and out. ciao
Okay. It's possible that there are institutions that have algorithms that are based on price action and price patterns. To be honest, it's the first time I've heard of that. I'm sure most algorithms aren't chart based, though, and while the calculus may not be esoteric, there's certainly a lot of high level math involved in some of them.
Based on what? You said that 2 months ago and they haven't budged. We all make bad calls B1. Own your mistake buddy.
Exactly Zandty....especially the big banks: 1) no net interest margin 2) few new loans being made; stringent criteria 3) hugh loan default write-offs Their only hope is in their fixed income and equity trading divisions.
I highly recommend reading The Man Who Solved the Market, a book about Jim Simons and the Renaissance/Medallion Funds. They made hundreds of billions of dollars and easily out-returned such as Soros, Cohen, Dalio etc. Simons was not a trader but a mathematician and math professor who had an intense interest in the markets...and making money. He assembled a team of other mathematicians, theoretical physicists, data and computer scientists. They amassed vast amounts of data and when they crunched the numbers, they first discovered that price had repeatable patterns and much to their surprise, the most efficient time frame to exploit those patterns was on the FIVE MINUTE CHART. So they programmed their trades which could be hundreds of markets simultaneous based on such a model. Moral of the story, the biggest whale in the sea wrote algo's off 5 minute patterns which were in the market long before they entered the arena.
This confirms my view that: patterns exist. patterns based on past data can work in futur. pattrens repeat themselves, also in futur. testing a system on past data makes sense. There are however a lot of "elitetraders" who don't agree with that.
It's quite amusing that you want to close this argument regarding the simplicity of algorithms referencing Jim Simons and his Medallion Fund which most likely uses very complex math and strategies. I read the book and I agree it's a great read, but I don't believe there was any reference to 5-minute charts, but it was said that they saw improved results going from the 30-minute time frame to the 5-minute time frame. Remember - a chart is only a visualization of one set of numbers. Quants generally don't analyze charts. They are more likely to use math and statistics. Very little is known about what Medallion actually do, but I would be very, very surprised if their core strategy is based on 5 minute chart patterns.