Rogue trader moved DOW & S&P lower...
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BSD
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Indeed it is as Christian Baha and his 1,5 billion fund clearly show:
Technical analysis:
Trading without emotions
Sound managed futures funds like Superfund funds are based on proprietary, fully automated technical trading systems. These eliminate poor investment decisions which are often the result of human emotions. A vast range of technical indicators and historical prices are analyzed by the computerized trading systems to automatically generate buy and sell signals.
http://www.superfund.com/HP07/Superfund_Trading System.aspx
BSD
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Or instead just stick to hard facts and look at what some other billionaire trend followers are doing with their wealth:
http://www.turtletrader.com/john-henry-red-sox.html
;-)
http://www.turtletrader.com/john-henry-red-sox.html
;-)
Waterfield
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BSD you're worrying me, you're sounding a lot like ODT!
DionysusToast
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sigh... sales pitch from yet another billionaire with pics having illustrious backgrounds. The only thing missing is the car from this one.
You can post pics of pretty boys in nice suits standing in front of expensive cars/houses/ports/hotels and quote their sales literature all you like. The fact is, you have misunderstood the argument made about TA in other threads and you misunderstand what the bulk of algorithmic trading is about. You also probably have the same misunderstanding about the role of a quant.
It is meaningless to argue with you about TA in any form as not only can you not understand the subtlies and nuance in the points being made but you also fail to discuss TA itself, you merely bring in more tales of success from web sites/sales pitches and trading books.
For some reason, you avoid tackling the discussion head on by actually taking about the details themselves. The reasons for this are clearly that you know what will happen if you attempt to tackle the points being made by presenting specific cases against the hypothesis.
Either that or you just don't understand what's being said.
You can post pics of pretty boys in nice suits standing in front of expensive cars/houses/ports/hotels and quote their sales literature all you like. The fact is, you have misunderstood the argument made about TA in other threads and you misunderstand what the bulk of algorithmic trading is about. You also probably have the same misunderstanding about the role of a quant.
It is meaningless to argue with you about TA in any form as not only can you not understand the subtlies and nuance in the points being made but you also fail to discuss TA itself, you merely bring in more tales of success from web sites/sales pitches and trading books.
For some reason, you avoid tackling the discussion head on by actually taking about the details themselves. The reasons for this are clearly that you know what will happen if you attempt to tackle the points being made by presenting specific cases against the hypothesis.
Either that or you just don't understand what's being said.
BSD
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Buddy you are only full of crap and hot air.
You made the ludicrous claim that the big boys don't use TA, and I'm just providing proof after proof that there are Billions upon Billions being run by funds that use nothing but TA.
But then you're the bright guy who thought this utter fool had anything to contribute, you must have been just about the only loonie who fell for this prize clown:
http://www.trade2win.com/boards/psychology/88566-if-you-want-fail-trader-study-ta.html
It's ALWAYS the same, those who don't get it go searching for complexity and post nothing but unproven hot air and wild theories based on nothing but conjecture, those who get it stick to KISS.
Oh yeah here's another multiBillionaire trader, James Simons, founder of Renaissance Technologies, and one of the grand daddies of algo trading, on what drives his fund:
"Simons explains his firm's approach as the financial econometrics equivalent of blocking and racking. "We search through historical data looking for anomalous patterns that we would not expect to occur at random. Our scheme is to analyze data and markets to test for statistical significance and consistency over time," says Simons. "Once we find one, we test it for statistical significance and consistency over time. After we determine its validity, we ask, 'Does this correspond to some aspect of behavior that seems reasonable?'""
http://webcache.googleusercontent.c...alysis&cd=1&hl=de&ct=clnk&gl=de&client=safari
Lol !
You made the ludicrous claim that the big boys don't use TA, and I'm just providing proof after proof that there are Billions upon Billions being run by funds that use nothing but TA.
But then you're the bright guy who thought this utter fool had anything to contribute, you must have been just about the only loonie who fell for this prize clown:
http://www.trade2win.com/boards/psychology/88566-if-you-want-fail-trader-study-ta.html
It's ALWAYS the same, those who don't get it go searching for complexity and post nothing but unproven hot air and wild theories based on nothing but conjecture, those who get it stick to KISS.
Oh yeah here's another multiBillionaire trader, James Simons, founder of Renaissance Technologies, and one of the grand daddies of algo trading, on what drives his fund:
"Simons explains his firm's approach as the financial econometrics equivalent of blocking and racking. "We search through historical data looking for anomalous patterns that we would not expect to occur at random. Our scheme is to analyze data and markets to test for statistical significance and consistency over time," says Simons. "Once we find one, we test it for statistical significance and consistency over time. After we determine its validity, we ask, 'Does this correspond to some aspect of behavior that seems reasonable?'""
http://webcache.googleusercontent.c...alysis&cd=1&hl=de&ct=clnk&gl=de&client=safari
Lol !
B
Black Swan
seriously if you thinka 1000 point PLUNGE is any way technical you need to get another profession. no offense
Pfttt!! Looks like there's a few journos gonna have to join me eh bud? Wtf do they know eh?
Stock plunge raises alarm on algo trading
A spine-chilling slide of nearly 1,000 points in the Dow Jones Industrial Average, its biggest intraday points drop ever, led to heightened calls for a crackdown on computer-driven high-frequency trading.
http://www.reuters.com/article/idUSTRE64631Y20100507
http://www.suntimes.com/business/2250624,CST-NWS-curious09.article
http://www.reuters.com/article/idUSTRE6466SB20100507
B
Black Swan
Question for those in the know
Gamers, sharks, dark pools, iceberged orders and pinging are way ahead of anything I'm ever likely to be involved in so my knoweldge of algo trading is (similar to Dinosaur Toast and others) critically limited to what I read in books, on forums, or have a genuine intellectual curiosity to enquire about. But I genuinely always thought that (with regards to strategy and implementation) basic models can rely on as little as linear regression, but that the more complex *game-theoretic* and pattern recognition or predictive models can also be used to initiate algo trading? Is this wrong, am I way off the mark with this? TIA...
Gamers, sharks, dark pools, iceberged orders and pinging are way ahead of anything I'm ever likely to be involved in so my knoweldge of algo trading is (similar to Dinosaur Toast and others) critically limited to what I read in books, on forums, or have a genuine intellectual curiosity to enquire about. But I genuinely always thought that (with regards to strategy and implementation) basic models can rely on as little as linear regression, but that the more complex *game-theoretic* and pattern recognition or predictive models can also be used to initiate algo trading? Is this wrong, am I way off the mark with this? TIA...
BSD
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No mate you got that right, it can be as simple as that:
"Superfund's origin dates back to 1991, when Christian Halper and Christian Baha developed a software system for the technical analysis of financial data. Within two years, this program became the leading provider of market delivery software in Austria. This success led to the development of the Quadriga Investment Group, created by Christian Baha in 1995. Today, the group has more than 280 employees worldwide. The quadriga Group launched its first alternative investment product for private investors on March 8, 1996 called the Quadriga Beteiligungs - und Vermogens AG". In 2003 the Quadriga funds were globally unified under the umbrella brand name SUPERFUND. Today, the group has more than 1.5 billion dollars under management from more than 55,000 retail and institutional investors."
http://www.superfund.com/
Technical analysis:
Trading without emotions
Sound managed futures funds like Superfund funds are based on proprietary, fully automated technical trading systems. These eliminate poor investment decisions which are often the result of human emotions. A vast range of technical indicators and historical prices are analyzed by the computerized trading systems to automatically generate buy and sell signals.
http://www.superfund.com/HP07/Superfund_Trading System.aspx
Doesn't get more elite or A-list than a fund running over a Billion.
Or take Larry Hite, another mechanical, technical trend following computer trader who averaged out at 30% p.a for years and years and is the guy who made MAN into the giant - biggest money manager in the world - they are today... (trader Daily, october 2008)
Ditto for Bill Dunn, who has all of TWO (!!!) parameters driving his mechanical, computerized trading model. (Trader Daily, june / july issue 2006)
There are proven examples beyond belief of people who made billions with the simplest of fully computerized trading models based on TA.
Ones gotta be catatonic to uphold the belief in the face of all evidence to the contrary that TA isn't used by any of the big players when some of the biggest around are on recoprd as using nothing but TA.
Of course there are lotsa fundamental funds too as any self secure individual will have no problems admitting, but it's just not the only game in town.
"Superfund's origin dates back to 1991, when Christian Halper and Christian Baha developed a software system for the technical analysis of financial data. Within two years, this program became the leading provider of market delivery software in Austria. This success led to the development of the Quadriga Investment Group, created by Christian Baha in 1995. Today, the group has more than 280 employees worldwide. The quadriga Group launched its first alternative investment product for private investors on March 8, 1996 called the Quadriga Beteiligungs - und Vermogens AG". In 2003 the Quadriga funds were globally unified under the umbrella brand name SUPERFUND. Today, the group has more than 1.5 billion dollars under management from more than 55,000 retail and institutional investors."
http://www.superfund.com/
Technical analysis:
Trading without emotions
Sound managed futures funds like Superfund funds are based on proprietary, fully automated technical trading systems. These eliminate poor investment decisions which are often the result of human emotions. A vast range of technical indicators and historical prices are analyzed by the computerized trading systems to automatically generate buy and sell signals.
http://www.superfund.com/HP07/Superfund_Trading System.aspx
Doesn't get more elite or A-list than a fund running over a Billion.
Or take Larry Hite, another mechanical, technical trend following computer trader who averaged out at 30% p.a for years and years and is the guy who made MAN into the giant - biggest money manager in the world - they are today... (trader Daily, october 2008)
Ditto for Bill Dunn, who has all of TWO (!!!) parameters driving his mechanical, computerized trading model. (Trader Daily, june / july issue 2006)
There are proven examples beyond belief of people who made billions with the simplest of fully computerized trading models based on TA.
Ones gotta be catatonic to uphold the belief in the face of all evidence to the contrary that TA isn't used by any of the big players when some of the biggest around are on recoprd as using nothing but TA.
Of course there are lotsa fundamental funds too as any self secure individual will have no problems admitting, but it's just not the only game in town.
Last edited:
Jack Hughes
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Marcus has been away since April 1. This is his first day back. Give him a fair go!
BSD
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Marcus has been away since April 1. This is his first day back. Give him a fair go!
Need my beauty sleep these days
But now I'm back again, all refreshed, rested and full of new energy.
Hi Split my friend hows life treating you ?
Hope everything is going great for you
You know what's best about this moronic broken record that those who can't trade off of TA keep going is that even proof positive from markets itself can't dispel their false beliefs, this denial of obvious facts really is cognitive dissonance at it's best.
What more proof does one need than what we saw last thursday when we had a 9% or whatever drop in the Dow driven by nothing much more complex than momentum - ie TA - driven algos jumping onboard a freight train leaving the station.
They sure didn't jump onboard because the fundamentals had suddenly changed, any more than the 70% of daily volume being traded on the NYSE is fundamentally driven, unless some really bright FA proponents straight outta comedy central wanna suggest that the funnymentals keep changing hundreds or thousands of times per day lol.
I am sad to admit it, but I missed that one. I closed the shop at 1330. I'd like to say I caught it but you know the story about George Washington....... But there is a consolation. If I said that I had traded that fall successfully no-one would have believed me, anyway.
BSD
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But there is a consolation. If I said that I had traded that fall successfully no-one would have believed me, anyway.
Hi Split,
I missed it too !!!
Why ?
On the phone with somebody about nothing, and missed one of the biggest opportunities of my trading life !!!
But then again, aren't we trained to go for regular singles and doubles, and not very infrequent homeruns.
(Ok ok, must admit, as nice as it would have been to double or treble your account in one day hehe, but unfortunately I'll never be able to spin that yarn in years to come !!!)
scose-no-doubt
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I thought mega-bank algos were programmed to find and front run block orders in institutional size :s
