No such thing as Noise fallacy

Discussion in 'Trading' started by DarkerthanDarc, Apr 17, 2025.

  1. Trading noise is subjective. Some people will say a movement is 90% noise, while others will say its movement is only 10% noise. Different people will observe different things.

    Trading noise is like fart, body odor, second hand smoke, environmental pollution...it's part of the collective mix.

    That's why trading is so difficult. It's not easy to see bull shit in the dark or in your food. You have to understand the relationship spectrum between data and art and establish a visionary future framework map to trade off of.
     
    Last edited: Apr 19, 2025 at 5:57 PM
    beginner66 and DarkerthanDarc like this.
  2. The reason I mention Noise, is that Noise will whipsaw a lot more violently, making it harder to Trade, causing more damage to your Account.
     
  3. Sekiyo

    Sekiyo

    Can you give an example ? Using ... CL, GC or ES ?

    E‑mini S&P 500 (ES) Futures
    Key Fundamentals
    • Trade‐policy volatility remains front and center: a partial reprieve on electronics tariffs buoyed U.S. tech names, but the broader sweep of recent tariff announcements continues to inject sharp, unpredictable moves into ES futures ReutersReuters.

    • Fed caution is limiting equity upside: Fed officials have signaled that the inflationary impact from tariffs is likely transitory and that they are reluctant to cut rates prematurely, keeping long‑term yields elevated and weighing on risk assets ReutersReuters.

    • Earnings‐season catalysts loom large: a heavy slate of reports from major tech and industrial names (e.g., Tesla, Alphabet, Boeing) will likely amplify swings as markets reassess growth prospects amid trade‑related headwinds Reuters.
    Going‑Forward Bias
    A neutral to slightly bearish bias: without clear relief on tariffs or a dovish pivot from the Fed, ES futures are prone to sell‑offs on bad news, while any positive headlines may spark short‑covering rallies.

    upload_2025-4-20_0-8-45.png

    Crude Oil (CL) Futures
    Key Fundamentals
    • OPEC+ supply restraint: producers collectively ran at 112% of their March quota, tightening available barrels and providing a firm floor under prices Discovery Alert.

    • Reduced non‑OPEC output: the IEA trimmed 2025 global supply growth by 260 kb/d, citing lower U.S. shale and Venezuelan flows, further underpinning the market IEA.

    • Demand slowdown: the IEA now sees 2025 world oil‑demand growth at its weakest in five years, pressuring the forward curve despite tight supplies Reuters.

    • Refining and inventory dynamics: U.S. Gulf Coast refineries operated at ~92% capacity in March, supporting regional spreads amid leaner stocks Discovery Alert.

    • Current price levels: mid‑April WTI sits near $61.84/bbl and Brent at $65.20/bbl, reflecting this tug‑of‑war between supply cuts and sluggish demand Discovery Alert.
    Going‑Forward Bias
    Neutral to modestly bullish: supply‑side discipline argues for support around current levels, while demand risks from a slowing global economy cap major rallies — look for a range roughly $60–70 with a slight upside skew if further OPEC+ cuts emerge.

    upload_2025-4-20_0-7-8.png

    Gold (GC) Futures
    Key Fundamentals
    • Safe‑haven flows from trade tensions: escalating U.S. tariffs and retaliatory measures have driven investors into gold, pushing prices to fresh all‑time highs above $3,300/oz markets.businessinsider.comReuters.

    • Fed rate‑cut expectations: markets now price in roughly 90 bps of cuts by year‑end, lowering real yields and enhancing gold’s carry appeal Reuters.

    • U.S. dollar weakness: the dollar has slid nearly 10% from its January peak, further boosting gold’s attraction for non‑U.S. buyers Business Insider.

    • Central‑bank and ETF demand: robust official purchases and record inflows into gold ETFs continue to soak up supply and lend structural support Reuters.
    Going‑Forward Bias
    Bullish: unless there’s a sudden détente in U.S.–China trade or a markedly hawkish Fed surprise, gold is likely to extend its rally. However, sharp retracements remain possible if sentiment abruptly shifts, so tactical pullbacks should be expected.

    upload_2025-4-20_0-8-31.png

    All data as of mid‑April 2025.
     
    Last edited: Apr 19, 2025 at 6:10 PM
  4. SunTrader

    SunTrader

    Noise, without actual examples, is just that noise.
     
  5. Trading Noises are decoys, distractions, temporary hiccup reversal moves all meant to fool you the trader from realizing maximum trade movement capture loot treasure.

    Imagine driving to the Grand Canyon Las Vegas...but you never reach there. For some reason or reasons, you ended up at a small town strip club or in Scottsdale or LA. Filter out noises and have deeper vision.
    Trader of Sun
     
    beginner66 and DarkerthanDarc like this.
  6. When I finish building my Strategy, from Fundamentals all the way down to Al Brooks 5 minute Candles, make only a modest 50 million, write my best selling Trading book, you @SunTrader and @Sekiyo will receive free autographed copies :)
     
  7. SunTrader

    SunTrader

    How many lifetimes from now?

    I only have 862 more to go.
     
  8. You're paying for them now. But the Autograph still comes free :)