|
PureBytes Links
Trading Reference Links
|
Bill,
Those are interesting articles. Connors has some unusual views (and
very expensive books <g>).
Below is an example of how a perspicacious DT can gain a trading edge.
It's a quote from Joe Ross' Trading Tidbits.
IIRC, the S&P contract in 1997 had a tick size of 0.05 worth $25 and
Joe's normal trading size for the S&P was 25 contracts (from "Trading
By The Minute").
How much money was Joe making?
" In 1997 I experienced a fantastic winning streak day trading the S&P
500, prior to electronic trading, and prior to the e-mini S&P 500.
In January of 1997 I noticed that at about 10:45 EST the market
moved up about 200 ticks, four days each week, better than 90% of
the time. It never happened on Friday, but Monday through Thursday
were great. I had no clue as to why it did it or who or what caused
it. All I knew is that it worked. So at about 10:40 EST I would
begin watching. Within minutes the attempt to move up those 200 or
so ticks would take place, and I would grab off about 100 ticks,
call it a day, and head for the Bahamian beach.
Then, sadly, in August of that year it stopped working. The exchange
cut the S&P in half and introduced the E-mini. I have never again
seen that phenomenon work, but believe me I have looked. "
Bill
--- In amibroker@xxxxxxxxxxxxxxx, "wavemechanic" <timesarrow@xxx> wrote:
>
>
http://www.tradingmarkets.com/.site/stocks/commentary/lcbattlep/08272004-39801.cfm
>
>
http://www.tradingmarkets.com/.site/swingtrading/commentary/lcbattlep/09022004-39899.cfm
> ----- Original Message -----
> From: sidhartha70
> To: amibroker@xxxxxxxxxxxxxxx
> Sent: Wednesday, August 20, 2008 10:52 AM
> Subject: [amibroker] Re: 'Rule Based' versus 'Discretionary'
trading...
>
>
> I think you're right Brian. We do all use rules of some sort.
>
> But I guess discretionary traders don't use 'hard and fast' rules and
> can't always define the same set of rules by which they choose to
> define an entry or exit.
>
> For example, as we all know, something as simple as defining a trend
> programatically can be more problematic as you might at first think.
> However, a good trader can see very quickly what state the market is
> in by looking at various time frame of chart.
>
> Likewise, divergences of various sorts can be easy to see with the
> naked eye but difficult to code in their entirety.
>
> Like driving a car, or a golf swing, you learn the 'rules' but when
> you get really good you are no longer thinking rules... you've
> effectively let go of the rules and are just 'doing'...
>
> --- In amibroker@xxxxxxxxxxxxxxx, "brian_z111" <brian_z111@> wrote:
> >
> > Here is my definition:
> >
> > We are all rule based traders.
> >
> > Mechanical Traders are a specialist group who have programmed
> > computers to autotrade their rules OR automatically announce their
> > rules via computer communications (audio, email, chart prompts,
> > spoken text etc).
> >
> > I am prepared to continue the discussion with any seers,
inituitives
> > etc, who come forward, and adjust my definition to meet anything
new
> > that comes out of that.
> >
> > In advance I admit to the possibility of exceptions to the rule.
> >
> > brian_z
> >
> >
> > --- In amibroker@xxxxxxxxxxxxxxx, "brian_z111" <brian_z111@> wrote:
> > >
> > > >Descretionary traders make decisions that are based on personal
> > > >knowledge and circumstances, perhaps using many factors
unknown to
> > > >themselves. Like which journal they read the night before.
> > >
> > > This is the nub of the question for sure, and the point that I am
> > > investigating.
> > >
> > > I suspect that when they (self-nominated DT's) think they are
> > making
> > > discretionary decisions they are in fact making rule based
> > decisions.
> > >
> > > That is why I asked for specific examples of 'discretionary'
> > decision
> > > making e.g. I haven't seen Bilbo's chart yet but I consider it
> > highly
> > > unlikely that the decision about whether a trend is in place is a
> > > discretionary decision - I can define a trend in several
different
> > > ways - all of them can readily be written as a rule (in words or
> > with
> > > code) - I don't care if the definitions are 'correct' or not as
> > long as
> > > the system that they are part of works i.e. my rules for a trend
> > depend
> > > on the context.
> > >
> > > As Dennis said, our rules might be difficult to program,
causing us
> > not
> > > to automate the trade, but mentally we are still running the
rules
> > and
> > > if we are honest with ourselves we do know what the rules are.
> > >
> > >
> > > >For a novice traders to try and mimic the techniques (of
> > Discretionary
> > > >Traders) without
> > > >having similar backgrounds merits caution.
> > >
> > > What I am suggesting is that, over time, the sub-conscious mind
> > will
> > > automate what was intially habitual conscious behaviour, and even
> > make
> > > some improvements on it, so that 'we' can skip the conscious part
> > for
> > > some 'tasks' e.g. driving the car becomes second nature.
> > >
> > > That won't happen for new traders, in a short time, so they do
need
> > to
> > > persevere, be patient and not try to mimic people who have been
> > around
> > > for years.
> > >
> > > IMO formal (written) rules based trading/backtesting/optimization
> > is
> > > the best place to start - it grinds the basic lessons in very
well.
> > >
> > > If anyone can look at a chart, and without recourse to any rules,
> > know
> > > which way the price is going to move and trade successfully
(long
> > > term) on that basis then that is something else altogether.
> > >
> > > If it is at all possible to do that then it definitely can't be
> > taught.
> > >
> > > That is why I asked, "Anyone doing it?".
> > >
> > > It is just like >100%PA returns - anything is possible but once
> > someone
> > > confirms that they have done it then it moves from the realm of
> > > possibility into reality.
> > >
> > > In the meantime I will stick to my guns by saying that "except
for
> > > people who KNOW what the price is going to do everyone else is a
> > rule
> > > based trader and categorizing traders, as DT's or MT's, is
> > arbitrary".
> > >
> > > brian_z
> > >
> >
>
>
>
> ------------------------------------
>
> Please note that this group is for discussion between users only.
>
> To get support from AmiBroker please send an e-mail directly to
> SUPPORT {at} amibroker.com
>
> For NEW RELEASE ANNOUNCEMENTS and other news always check DEVLOG:
> http://www.amibroker.com/devlog/
>
> For other support material please check also:
> http://www.amibroker.com/support.html
> Yahoo! Groups Links
>
>
>
>
> No virus found in this incoming message.
> Checked by AVG - http://www.avg.com
> Version: 8.0.138 / Virus Database: 270.6.6/1623 - Release Date:
8/20/2008 8:12 AM
>
------------------------------------
Please note that this group is for discussion between users only.
To get support from AmiBroker please send an e-mail directly to
SUPPORT {at} amibroker.com
For NEW RELEASE ANNOUNCEMENTS and other news always check DEVLOG:
http://www.amibroker.com/devlog/
For other support material please check also:
http://www.amibroker.com/support.html
Yahoo! Groups Links
<*> To visit your group on the web, go to:
http://groups.yahoo.com/group/amibroker/
<*> Your email settings:
Individual Email | Traditional
<*> To change settings online go to:
http://groups.yahoo.com/group/amibroker/join
(Yahoo! ID required)
<*> To change settings via email:
mailto:amibroker-digest@xxxxxxxxxxxxxxx
mailto:amibroker-fullfeatured@xxxxxxxxxxxxxxx
<*> To unsubscribe from this group, send an email to:
amibroker-unsubscribe@xxxxxxxxxxxxxxx
<*> Your use of Yahoo! Groups is subject to:
http://docs.yahoo.com/info/terms/
|