shouldnt we traders be worried about algorithmic trading taking over?

[gooseman]

there's nothing like a good panic to set the markets free of technology

 

[jammy1337]

haha, yeh i suppose, lets see those algos handle a 1929

 

[Technically Fundamental]

Cameron is very traditional and his poppa was a stockbroker. Maybe you guys will get lucky and they'll cut capital relief on R&D.

 

[N Rothschild]

40% of volume on nyse is auotmated..imo this is way to much it destorts the fundmentals and imo is why the markets can be so irratic at times

 

[Technically Fundamental]

haha, yeh i suppose, lets see those algos handle a 1929

I bet they couldnt handle a 2008. i bet that was all manual. There was a point at the beginning of this year where you could just get short at the yank open then go out and come back to a nice meal ticket. Pity I was only demoing at that time.

 

[jammy1337]

so genics do you think this automated trading is good or bad for day traders

 

[N Rothschild]

algos would make any crash worse, seeing they basically chase the market with buy/sell programs driving the trend harder.. im actually implementing this into my trading, getting in when i believe the algos are gona jump in..working good so far!

 

[jammy1337]

haha, well im 15 and i just scalped me £14 with mah 2.2k account on those little intraday breakouts out on aapl.

 

[Technically Fundamental]

algos would make any crash worse, seeing they basically chase the market with buy/sell programs driving the trend harder.. im actually implementing this into my trading, getting in when i believe the algos are gona jump in..working good so far!

This is what I've been trying to do but you need an understanding of what kind of stimuli the algos react to. Where are you getting this information?!

 

[N Rothschild]

so genics do you think this automated trading is good or bad for day traders

very bad, unless you start to take them into account like i am

 

[N Rothschild]

This is what I've been trying to do but you need an understanding of what kind of stimuli the algos react to. Where are you getting this information?!

dont need any infomation ive watched the markets long enough and seen enough things to make me go (what the ****) to realise whats going on

 

[jammy1337]

damn, there goes my hopes of being a proper day trader

 

[N Rothschild]

damn, there goes my hopes of being a proper day trader

learn and adapt...

 

[jammy1337]

well genics, i use pretty technical strategies, but basic all the same, for example i usually use stochastics as buy/sell signals in a sideways markets, and use moving averages to decide and trade momentum, i also trade a lot of these well known patterns and strategies, e.g. head and shoulders, and a lot pf pivot points- how do you think this combination will fare against these algos?

 

[N Rothschild]

badly

 

[jammy1337]

well then thats just about half of all day traders f*****

 

[N Rothschild]

yeh, and people wonder why they always lose money

 

[jammy1337]

you trying to tell me that just about every technical analysis book is now going to be considered 'outdated' thanks to these frikking machines?

 

[jammy1337]

you said that you yourself have recognised these patterns? well what happens after these patterns get well known, you could have more automated systems trying to follow the original system, creating a truly unpredictable market

 

[Skill Leverage]

Jammy, how is this any different from humans doing this? Everyone in the market, man or machine, has an opinion; the trick is to pick points where you believe the majority of the participants will be of the same opinion.