What´s left for the human trader?

*Arbitrage: computers: definitely better.

*Making a market: in electronic markets, black boxes can react much quicker than a mortal can.

*Technical analysis: A properly programmed computer, why wouldn´t it be able to recognize patterns just as well as human beings?

*Fundamental analysis: More and more computer interpreted systems are coming in, but still the human has the clear upper hand.

Thus, in my opinion, we are being outrun, made redundant, except for fundamental analysis.

 

trade a market that would not use these for lack of being able to put size on....I.E. not worth it for them...

 

scalability

 

I've always done well in small caps. I think they're the markets where humans can excel because a computer can't analyze ability for growth due to innovation, management, etc. They will likely not be able to for a long time.

Capitalizing on that edge is easier than most others that are out there.

 

bottom line is a system/algo/black box/computer cannot and will not take a punt.

take a view and go with your gut feeling.

same thing when your wrong and you get out.

you just know its time to get out.

something smells wrong.

computers will never be able to do this in the current format.

 

conditional probability

 

I think your approach is wrong. If you are trading longer term and not trying to scalp for a few bucks, it doesn't matter who are you trading against. Also if you go with the trend, just how wrong can you be?

Not to mention that programs act always the same way to the same set ups, thus very well recognizable patterns emerge...

 

You talk to much.

 

Holy shit if computers can come out and analyze things like innovation and management we really are not going to stand a chance. I think there has got to be a breaking point sooner or later. I mean if you get all these highly complex computer systems that will be able to analyze and trade like that the charts will literally be a flat line except when news or info comes out then it is a jump to the appropriate price then another flat line. What kind of trading would that be? It would no longer be profitable for anyone to trade at all due to all of the competition and everything literally being priced in. I would imagine that the SEC, CFTC or the exchanges would step in at that time. Scary Thought Though!

 

You can't even spell a 3 letter word ( too ) correctly...perhaps you shouldn't comment about anything.