Structural Collapse

Discussion in 'Trading' started by dima777, Sep 19, 2008.

  1. dima777


    Can it be that the ban on short-selling in USA and UK will bring about a massive rearrangement in market dynamics that can destroy the effectiveness of many technical trading systems which have been successful so far? What do you think?

  2. How do you make this one out?
  3. dima777


    I paraphrased it into a question. My thoughts are that the usual technical patterns that the systems exploit are the product of the BALANCED interplay of the forces of supply and demand on the markets....this balance will be shifted towards the buying public if the ban stays - causing the disbalance which will ultimately mutate the way the technical patterns look and form...:(
  4. yes i think so, i def believe price patterns are now messed up, i have fallen back on my core strategy which relies on trading stocks which are for the msot part insulated from broad market action
  5. My systems have been adversely affected by the change in market behavior. I am waiting to see if the last two weeks' behavior shift will revert, or if this is a new pattern. If the latter, I will need to rewrite my systems again to exploit newfound weaknesses. I'd rather not, but I have done it before.
  6. I think this is guaranteed to happen. Time to go back to fundamentals.
  7. Would it be safe to say that if you can trade in this, that you can trade anything?
  8. No. Systems that worked before may not work now. New systems are needed for these new behaviors. That new system will not work should the old behaviors return, any more than the old system works today.
  9. You mean buying when the mas cross over aren't going to work anymore?

    I am screwed !!!!

    :eek: :eek: :eek: :eek: :eek:
  10. I can't speak for stocks but aside from the opening 5 min bar on the ES, the rest of the day acted the same way the mkts always do (in terms of PA patterns I trade off of). Who knows if this will change over time but at least today I found the day to be business as usual (aside from the huge gap up).
    #10     Sep 19, 2008