Hency Corniey
Junior member
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Not always I can but try to best to hold and come into profile.
Hency Corniey
Junior member
- Messages
- 44
- Likes
- 8
In business risk is natural. Trading is a business so you have keep this in mind. lol
Sure, I don't argue on this. The difference is that old-school trading is "_more_ risky" and "_less_ profitable" :whistling
I would be interested in your definition of Old-school....
Well, using standart technical analysis, support & resistance, such stuff.
The single best book on algorithmic trading that I've read is Algorithmic Trading - Winning Strategies and Their Rationale by Ernie Chan (2013). Not too technical, but it requires that you know some statistics, and programming. You probably should know a little linear algebra, too. The code examples he gives are in Matlab. If you don't know Matlab, but you know other programming languages, you can figure it out.
Everyone has a different approach. I wanted a system that didn't require me having to stare at charts all day long. I trade once a week, and the rest of my time is free.
I suspect algo trading tries to utilise micro-second movements in price by capturing profits on the short bursts that we simply would not be quick enough to do. However, standard technical analysis, support and resistance and other such stuff is still relevant as ever. We are not interested in such quick moves. We are interested in intraday and multi-day moves.
Clear, level thinking.
Trends, swing highs, swing lows, support and resistance don't go out of fashion. Trend-following won't stop working because people realise it has been working. A swing low in an uptrend means the same now as it would have to Jesse Livermore. It is just as possible to make a good profit out of 10 10-day with-trend trades as it is out of 100 intra-day trades over the same 10 days. In fact, it takes a damn sight less work.
What your describing is high-frequency trading which certainly does involve algorithms. However, algorithmic trading is also often applied to intraday, interday, and swing trading. I use an algorithm based on statistical arbitrage for swing trading -- I trade about once per week.
Thanks, I'll check it out. Was curious about this topic for some time now, but didn't quite know where to begin.
It does? To me it seems like the longer the term, the more difficult it becomes to predict the movement and the more time you have to spend on it.
No its a common fallacy that long-term horizons are harder to visualise.
But think of the markets like the weather. The short-term weather forecaster has to predict the temperature to 2 decimal places in the next 2 hours this afternoon, as well as the max and min in that period. All I have to do as a trend-follower is predict whether it will be warmer in the summer than in the spring.
Well, it does seem easier the way you put it. On the other hand, short-term weather forecaster can use precise tools designed specifically for this, whereas a trend-follower has nothing other than statistics of previous periods performance. And when trends change (global warming, for example), the latter are the one who suffer most.
But why? Considering you are a long-term trader, buy in an uptrend, and trend changes, why in the world would you be happy about it?
THen how to analyce the trend will changed, sometime that occur is only false signal, I thin forex is about possibility, we trying to get best opportunity on easy trend market
I follow the trend. When it becomes a range I sit in cash. When it becomes a trend, up or down I don't care, I follow it long or short. I don't care if it ends, all trends end. The end of an uptrend could be the start of a downtrend, then I'll be able to short it. Money.
