Professional traders screens are made up mostly of numbers, amateurs screens are made

Discussion in 'Trading' started by mokwit, Oct 23, 2010.

  1. jOllie

    jOllie


    The exact logic can be used to support random entries. Either you win or you lose. Losers can become winners if you apply time. Just like winners can be losers depending on time Held

    The dynamics here are not simply linear like a chart forces.
     
    #31     Oct 24, 2010
  2. Not all financial instrument derivatives meet your premise. Options, for example, have a finite life. Time wont help you when they expire.
     
    #32     Oct 24, 2010
  3. Not really, because price MUST behave in a certain way, within certain limits, in order for the trade entry hypothesis to remain valid within the constraints of the pattern. Even if the entry itself was based on a subjective interpretation of a chart, that subjective interpretation becomes the objective constraint on price now that the trade is initiated. So, if I enter a trade because I think a pattern ended at the most recent high, even if my interpretation of the pattern's conclusion is ultimately subjective and wrong, the most recent high is my stop. Period. In your scenario, I remain in the trade for some indeterminate amount of time even if price moves beyond that most recent high. It's not hard to construct scenarios in which pattern trading with objective stops would outperform random entry trading without objective stops.

    Anyway, before dismissing pattern-trading, I think it would be appropriate to compare the records of pattern traders to non-pattern traders before saying one method was superior to another. My guess would be that there are good pattern traders who outperform mediocre non-pattern traders.
     
    #33     Oct 24, 2010
  4. The only non-pattern trading I've ever had any success with is credit spreads. Passage of time has not yet been reversed at a scale that would negate the inevitability of option expiration.
     
    #34     Oct 24, 2010
  5. spindr0

    spindr0

    -------------------------------------------------------------------
    Quote from spindr0:

    My Excel formulas aren't very bright. They can't analyze charts so I am forced to look at numbers only


    -------------------------------------------------------------------
    LOL. I guess the irony of my comment was too subtle for you.
     
    #35     Oct 24, 2010
  6. Redneck

    Redneck


    IDB

    I get this on trending days – how do you handle inside days Sir

    -----------------------------------------------------------------------------------------------------------------------------------------------
    Separate note

    I also get how one can trade with out a chart by entering the underlying – then offsetting with options


    Not sure how to strictly trade (no hedging) stock(s) day in and day out without a chart(s)

    ----------------------------------------------------------------------------------------------------------------------------------------------


    Aside

    Couple of years ago my computer’s time was off causing my charts to crap out

    To see how well I could read the tape I traded POT with out them - and only used T&S

    Doable – yes… but it took a considerable amount of focus and note taking

    I would not want to trade this way day in and day out


    Thank You
    RN
     
    #36     Oct 24, 2010
  7. aradiel

    aradiel

    [​IMG]
     
    #37     Oct 24, 2010
  8. Redneck

    Redneck


    JSSPMK

    Would you be put off if I replaced Pro with Commercial

    I humbly consider myself a pro – but I also use charts

    :)

    RN
     
    #38     Oct 24, 2010
  9. JSSPMK

    JSSPMK

    Do you manage/trade OPM?
     
    #39     Oct 24, 2010
  10. Redneck

    Redneck

    Nope

    RN
     
    #40     Oct 24, 2010