Why is it not portable back into retail? You think there aren't any wealthy retail people who could mimic the whole operation? And if you say 'no', then the competitors would surely like to learn every detail of the operation and set up shop next door, so to speak. That kind of business model is unsustainable and unrealistic, you can stay 3 steps ahead for a while but eventually you'd be eaten alive. You might "know" some shops but I think you don't understand how their operation works or what their real edge is. In 1985 you might've been right, automation was almost nowhere back then.
It's another case where MS shows he's not familiar with programming languages <u>that are</u> currently available to do what he says can't be done which is the automated routing and switching. Backtests won't be as robust because technicality is what is tested less than profitability. I've done that in my codes. You can't send pre-market orders to market when it isn't open, so here's another example where he's talking out his ass. Route to the best price always. In EasyLanguage specifically this is possible but I believe only in tradestation, haven't looked at multicharts for that since only futures are held at one exchange and not several ecn's competing on price.
Sure, it can be done-- but by the time it is, the prop firm if its constantly researching the next edge is onto the next thing as the original edge fades away. it was 2003/5 when I traded with a prop firm that had a real edge over the markets-- not 1985 LOL! surf
An edge has nothing to do with hardwork experience or experimentation to the man who has never created one and has only replicated the work of others, no...
I found it intriguing after reading this that a system data-mined for qqq did as well or even better in tlt in a falling market with a long/short pattern ratio of 2...
Don't listen to surf, his contradictions and several misinformation about prop firms. You can easily learn all about the bad and good involving prop firms here at ET via the search function @ http://www.elitetrader.com/vb/search.php?s= and a few of the prop firms are sponsors of Elitetrader.com such as http://www.stocktrading.com/ and http://www.echotradeonline.com/ and http://alpha7trading.com/ If that's not enough info, use Google @ http://www.google.com to find opinions by those that have done prop (succeeded and failed) outside of surf's agendas. Simply, there are traders at prop firms that do use TA (they use charts to help them with their trade decisions) and traders at prop firms that do not use TA. Also, if you go @ http://www.stocktwits.com there are a few prop firms promoting their business while discussing chart patterns, s/r analysis and other forms of technical analysis (e.g. http://stocktwits.com/futurestrader71) P.S. I have no affiliation with any of the above mentioned prop firms.
wow, lots of links in that post. Name a contradiction and misinformation. While there may be prop firm traders that use subjective TA to make decisions, its generally not taught as an edge in the market by prop firms. Only retail relys on this archaic method, often to their detriment. Sure, real pros use TA but only as descriptive metaphors such as your stocktwits examples. Why is everyone so anti-prop firm? Its the most intelligent way to learn real edge that works now. surf