The most efficient method of trading

Discussion in 'Trading' started by stewbacca, Mar 7, 2023.

  1. stewbacca

    stewbacca

    I haven't posted for a while in this forum, but have been wanting to share my main takeaway from my 23-plus years of trading experience, and wanted to see what other members thought.

    While traders are bombarded with technical and fundamental analysis, I have found from my own trading results, and from the results of the other successful traders I have been surrounded by, that it's not fanciful candlestick patterns that bring big and consistent profits, the strategies that offer the most edge are what I call "glitch strategies".

    I will use the word “glitch” to describe a malfunction, mispricing, arbitrage, or inefficiency within a market. A good example in the equity markets are opening and closing auction strategies. Another example might be inter-exchange arbitrage. These kinds of strategies, though hard to find, do exist in all markets, and when discovered and utilized can bring almost unlimited profits.

    My goal isn't to list a bunch of strategies, but rather share this approach to trading, and see if other members of the forum share my same outlook, or might suggest markets that may be "ripe with glitches"
     
    Tradess0610 and murray t turtle like this.
  2. 2rosy

    2rosy

    renewables
     
    stewbacca likes this.
  3. stewbacca

    stewbacca

    Interesting.. Is this an accessible market?
     
  4. mikeriley

    mikeriley

    That's very interesting stewbacca.
    My edge is the plain-ole adding contracts
    when market moves in my favor.

    Sometimes it's just intensive and conscientious practice
    based upon mentorship, study, research, and analysis
    until a trader/investor finds what works.
     
    smallfil, damnpenguins and stewbacca like this.
  5. easymon1

    easymon1

    Nothing succeeds like success.
    Post an example or two of successful trades of this type from the past to get the ball rolling.

    delete.jpg
     
  6. %%
    CLOSE , more than the open price.
    By close all have voted. Certain exceptions apply:D:D
     
    Buy1Sell2 likes this.
  7. Nope. It's "Price TA". Don't let anybody convince you it's different.
     
  8. traider

    traider

    Totally agreed but these edges can get eroded very fast and there were a lot of these in cryptos but now you have to deal with crypto exchange risk which have become undefined.
     
    stewbacca likes this.
  9. Sprout

    Sprout

    for liquid markets;
    glitches = inefficiencies = imbalances = gaps = everywhere when one has eyes to see

    They occur when slicing by price, time and/or volume

    I imagine the options market would be ripe with them, idk, not really versed in options yet.
     
    stewbacca likes this.
  10. mikeriley

    mikeriley

    You make a valid point. Depends also what an edge is based upon.
    If you know 90% of traders refuse to follow a certain tactic for
    optimizing profit, then it's highly unlikely to lose that edge.

    Also, imagine if one's edge is based upon the cyclic nature
    of markets. If the market never ends, neither will the Cycles
    that define it. Of course their phases may change,
    but the same formulas/ratios are used to define the cycle.

    The market is a multi-dimensional geometric solid (CYCLES within a square)
    rotating on our chart screen.

    Basically the same principles of physics governing
    the structure of the atom and forces of energy
    in cyclic action, also define the CYCLIC structure
    of the markets.

    Natural Law never changes, only we do.
     
    #10     Mar 7, 2023