I understand from your name/site that you are a dealer based forex trader? Likely use MT4 platform? Just guessing. You also appear to be a psychologist/psychiatrist? I have a good friend who is also a psychologist--- maybe he can make sense to you why Fixed system objective TA simply makes no sense http://www.brettsteenbarger.com/Stationarity.doc Surf Ps--As an aside, maybe you can learn from dr Brett how to gain some traction for your business. Pss. Are you familiar with the forex contest that you won by losing? Wonder why losers started winning hence lost the contest? Therein lays your answer.
The miracle of compounding negates your vast sum needed argument. Take a penny, double it. Yadayadayada. I present things in different perspectives trying to gauge themes. Sorry if that confuses you. Surf
<b>Quote from RCG Trader: So you are in a twist about the type of data used, is that it? If you took order and graphed it for visual use, guess what you have? An indicator! So instead instead of graphing your data you are using spreadsheets and waiting for certain drivers to line up. And that is not TA, you say. Really?</b> TA deals with post trade data. Price Driver deals with pre trade data. Price Driver isnt TA per the accepted definition of TA.
No, it actually doesn't. Starting with 10k, it takes more than 10 years assuming a 50% return (which is clearly above market average) to make it to a million, so nothing is instant as you implied. You present your view while ignoring all the facts, nothing else.
Yes, I am MA in psychology and Ph. D. in social philosophy. Yes, I trade dealer based (Oanda) forex (not through MT4 though mostly, too slow platform for day trading). Reason for that is very simple: less deal costs, which adds up nicely when you trade actively. I used to trade ES, NQ, FGBL, FESX, 6E... But switched to dealer based stuff simply because it saves me money on deal costs. Yes I am aware of Brett's works, thanks for the link. But no, I don't counsel traders for money, counsel people with more typical spectrum of problems and more as a social work and to stay in good professional shape than as main source of income. Day trading makes quite a lot more honestly and is much more fun. I don't know what you mean by fixed system objective TA, but I sure know that everything related to our cognitive processes, including intuition is based on some actual information processed by the brain, so if TA trader's intuition "works" (as you admitted), that inevitably means that there is some information on the charts, which also "works" in a way of giving an experienced trader's brain signals about odds of certain market event being good enough to justify putting risk on. I trade by TA patterns, which in the course of the actual market observation made me confident to put the risk on those patterns, because they simply make money in the long run (being close to random in short samples, while it adds up very nicely in larger samples). So nonsense or not... should we care as long as it just works?
The problems of nonstationarity as discussed in Steenbarger's paper, can be overcome. As I mentioned earlier in the thread, the key is to properly integrate volatility into your rules. Will the resulting rules enable you to win on every trade? No, but that is an unrealistic expectation (and unnecessary, too). I mentioned that I've already documented the outcomes of over 750 trades and there's almost no way those outcomes are due to chance.
Amazing the time and energy wasted on this silly topic. Of course TA works, surfer is an idiot, you can't convert them all, so what, clock is ticking.