What do you consider noise?

Discussion in 'Technical Analysis' started by mcteague, May 4, 2012.

  1. ocean5

    ocean5

    retraces i find sometimes noisy,though i have no programming skills to eliminate the from my display.:(
     
    #31     May 4, 2012

  2. Agreed
    And many books/articles/recomendations you can read base their assumptions on market behaviour on a daily chart (ie candles)
    It aint the same intraday - it just aint
     
    #32     May 4, 2012

  3. anything is tradeable
    3 snails racing on a trail of slime is tradeable
    if you can do the math
     
    #33     May 4, 2012
  4. You, the trader decide what is noise and what is the trend you are trying to capture.

    If you are taking your kids to school in the morning, there is a little noise and then a short trending trip.

    If the family is going to grandmas for the weekend there is more noise, but a longer trending trip.

    If you live in NYC and grandma lives in SoCal there is a lot of noise but a very good trending trip if you stay with it and don't go crazy.
     
    #34     May 4, 2012
  5. Bob111

    Bob111

    ----What do you consider noise?---


    CNBC
     
    #35     May 4, 2012
  6. BSAM

    BSAM

    The noon hour, usually.
     
    #36     May 4, 2012
  7. otherwise, I like that quote, according to Einsten, everything is relative, and that is the only absolute

    on a Friday night, wish I had some pot

    "What is an absolute relative to?"
     
    #37     May 4, 2012
  8. dom993

    dom993

    I believe "noise" hinders traders at 2 levels ... at the highest level (trading plan), it makes it difficult to identify these behaviors (patterns/structures/...) that could produce a system w/ positive expectation, because a particular behavior is scattered through many others behaviors plus a ton of noise.

    At the lower level (day-to-day execution), noise makes it again difficult by making each instance of a specific behavior appear quite unique, often times different enough from the template behavior to raise questions about the validity of this instance (for discretionary traders) or have it simply missed by an automated system. One could add there are also instances of pure noise that match the template definition for a particular behavior, but I would argue that it is impossible to prove it was noise not signal, so I am deliberately ignoring this (provided the template definition for a behavior has been refined enough).

    Against this low-level noise, for a specific market behavior identified & modeled as a "template", I use metrics to measure the quality of each instance (vs the template definition), and statistics out of backtesting to set thresholds for those metrics (which become execution filters). One of the keys is to have a loose enough initial definition of the behavior ("outside" template), to capture & measure as many variations as possible, in order to refine the "inside" template through those metrics/filters.
     
    #38     May 4, 2012
  9. ammo

    ammo

    noise is what the parent's of a successful musician have to listen to while the kid's growing up,if he/she makes it,it becomes music
     
    #39     May 5, 2012
  10. kut2k2

    kut2k2

    Seeing is believing. I have to see significant profits being derived from a randomly generated series before I believe it.
     
    #40     May 5, 2012