and the point is - drum roll! there is no point just like higher education! in fact consider that the myth of higher education is nothing more than a government tool to dumb down the masses into socialism and enslave our youth.
<iframe width="420" height="315" src="http://www.youtube.com/embed/ZK3O402wf1c" frameborder="0" allowfullscreen></iframe> Understanding and mastering Linear Algebra is the first step of many developing your own indicator. This is rock science.
Who needs an indicator when we have GrandSuperCycle! http://www.elitetrader.com/vb/showthread.php?threadid=214546
Here is Higher Education Exam sheet. http://ocw.mit.edu/courses/mathemat...-spring-2010/exams/MIT18_06S10_Final_Exam.pdf The question is, why are u losing?
Is there a book or material in applying linear algebra to making an indicator? I took linear algebra. I had never heard of it's application to making trading indicators. I've just seen 3d graphics algorithms using some aspects of linear algebra. True it helps in deriving algebraic equations and mathematical proofs and basis, and is the first step into advanced math for a math major. In computer science one studies finite automata logic, and grammars and use discrete math. But again, I don't see how or haven't heard how that applies to making indicators. A lot of the calculus based math is used for modelling the physical sciences and engineering based on natural physical laws. But again, trading is not natural physical law. Trading is human fear and greed, and psychology has a long way to go in being able to predict or manipulate mass behavior and economics precisely. If quants and mathematical trading was that precise, Goldman Sachs would have done better this past quarter and MFGlobal wouldn't have failed big time. If anything HFT uses some logical ai but it's still based on observing buy/sell patterns. You don't need a full science college degree to learn to program an indicator. A 2 year degree, or a year spent learning to program C/C++ and basic pseudocode to learn about the tools to use is sufficient. All oscillator based indicators are lagging anyways. It says so in Stocks and Commodities mag. The human brain is better at anticipating prices than computers still by learning and practicing discretionary trading and price action.
But you forget to mention all those who have a college degree and most of them have lost as well. Formal education does not give you anything when trading the Forex or Indexes on five minute bars. College degreed people still have to put in the same amount of time studying the markets as one who didn't pass high school. It comes down to "heart and drive", if someone doesn't have that, you can forget about making it in this business cause no one gives you anything when you are on one side of a trade. I was profitable trading stocks way before I even went to college. College did teach about the financials to all the other students that I had already learned years earlier on my own. College certainly didn't teach me about money management stops and targets, didn't help me at all the emotions one goes through while learning and certainly didn't help on how to backtest ideas. Hell, PC's were $4,000 back then if you could afford to buy one. College gives opportunities to see other investments, but still comes down to heart and drive to become a profitable trader. Not having a degree is just another excuse.
There was a study done amongst the customers of a broking house some years ago. Most lost money, but in terms of education, there was no significant difference in loss rate between those with say first degrees and those with advanced degrees (virtually all their customers had a college degree). The point, i think, emg is trying to make is that you need the education to be subsequently employed by a firm or company (he refers to it inappropriately as the "house"). He saying you are not going to make it as an independent trader, but only as someone who is an employee.
Should we distinguish between a degree and an education? Somebody wanted to give up their current career (which had a degree) and start trading forex 'next week'. I asked what about getting an education before trading? The answer was - what education? you just press the buttons! Seeing my face, he sheepishly asked how to go about getting a trading education. This is what I told him: 1. Read about the greatest traders and investors - 1 month 2. Read about business, economics, stock and forex markets (fundamentals) - 2 months 3. Read about technical analysis - 2 months 4. Read about trading psychology - 1 month 5. Read about risk and money management - 1 month 6. Read about trading systems and trade plans - 1 month 7. Demo trade phase 1 to understand oneself - 1 month 8. Design at least 5 trading systems - 2 months 9. Demo trade phase 2 to test systems - 1 month 10. Go live with selected systems phase 1 with 50% of equity - 6 months 11. Go live with selected systems phase 2 with 100% of equity - 6 months 12. End of 2 years - review and analysis of live trading data.