Why does TA not work (for you)?

Discussion in 'Technical Analysis' started by Xspurt, Aug 4, 2012.

  1. I'll accept my role here as an educator -- HFT is not a trading method but rather encompasses multiple strategies-- primarily market making and latency arbitrage. It is constantly evolving and in no way "fixed". One HFT strategy may work for a week then it's edge is gone and another strategy is implemented. HFT has nothing to do with TA for the most part.
     
    #1091     Aug 14, 2012
  2. No, there are runs and series in random generated stock charts just like in real price charts.
     
    #1092     Aug 14, 2012
  3. How many market return beating non prop traders have you met? Not counting unverified claims
     
    #1093     Aug 14, 2012
  4. cornix

    cornix

    Guess it depends on what's meant by "TA". If it's TA in the sense of wrbtrader, then hardly one can beat a human trading nearly every day and staying in sync with market evolution. That's the beauty of creative TA approach, you adjust to the game depending on conditions, algos can't change that fast, because they first need to be reprogrammed by humans. :)
     
    #1094     Aug 14, 2012
  5. cornix

    cornix

    I would never speak of unverified claims in the presence of wrbtrader, because it really sounds funny. :)
     
    #1095     Aug 14, 2012
  6. I personally know the head of a HFT desk at a major firm in NYC and we had dinner several months ago and we were talking about HFT and he TOLD me that they use TA as a component of their algo's strat.

     
    #1096     Aug 14, 2012
  7. cornix

    cornix

    When I watch Euro PA and see how amazingly often it reacts at certain TA/PA levels, it makes me wonder if those algos which are lately very active in FX also use... (such a blasphemy!) trendlines and S/R... :D
     
    #1097     Aug 14, 2012
  8. That's news to me. Does this firm lose a lot? People try all kinds of crazy sh@t trying to find an edge nowadays. Some fims have Gann masters and astrologers on staff.
     
    #1098     Aug 14, 2012
  9. I don't know the desk's performance metrics but he's been the head of the desk for at least several years now and he works for a firm that everyone here knows. I would imagine if they weren't doing well, he'd be gone by now.


     
    #1099     Aug 14, 2012
  10. Next time you see him, ask him about the results with the TA strategy. It won't be a pretty picture--- if he's telling truth. Remember, some of these firms run 100's if not 1000's of strategies--- could there be a TA component to one of them-- SURE. That's why my original comment said "FOR THE MOST PART". There are TA true believers in all levels of the market-- doesn't mean TA works.

    Just like multi PhD particle physicists who believe in Magick--- there are a few, but it doesn't make Magick credible.

    surf
     
    #1100     Aug 14, 2012