In Cambio Veritas

timsk said:
Hi Monetæ,
Welcome to T2W.
It's always good to have traders with institutional experience contributing - so I look forward to your thread.

One question I expect a lot of subscribers will be wondering is the extent to which you and your colleagues relied upon TA in your hedge fund days. You include it as part of your approach now - but was it also part of your approach back then? If it was used, did you just use price action or did you utilize any technical indicators?
Cheers,
Tim.
Click to expand...

Perhaps Martinghoul could answer this? He would have the relevant knowledge if I remember correctly.
 
Not sure who Davie Robertson is but I see he was banned from the forum. Anyone care to share? Looks like he promoted some spreadbetting system.

Originally Posted by timsk
Hi Monetæ,
Welcome to T2W.
It's always good to have traders with institutional experience contributing - so I look forward to your thread.

One question I expect a lot of subscribers will be wondering is the extent to which you and your colleagues relied upon TA in your hedge fund days. You include it as part of your approach now - but was it also part of your approach back then? If it was used, did you just use price action or did you utilize any technical indicators?
Cheers,
Tim.
Click to expand...

Yes I used technical analysis then as long as it was in line with our fundamental view. No indicators. Some traders a few simple ones (RSI, MACD) for confirmation but not solely for entry/ exit.

Regarding my approach, fundamentally I expect a higher USD/JPY by year end. Technically resistance held at the 50% fib (103.72 - 93.75) and now a H&S pattern is forming on 4hr chart so I'll stay out looking to buy at lower levels or a break above.
 
Monetæ said:
Not sure who Davie Robertson is but I see he was banned from the forum. Anyone care to share?
Click to expand...

He's a legend. He made millions as an institutional trader, and then decided out of pure altruism to sell trading courses for a few hundred quid a pop.

If it were not for him, we would not know that T2WSucksA$$, or that BaronjonSucksA$$.

If he ever decides to pack in the vending game (voluntarily, rather than repeatedly through exposure of his identity) he has a great career ahead of him as a comedian.
 
Monetæ said:
I have perused but haven't contributed.
Click to expand...

I believe you. And I wasn't El Bandito Hungoso, or El Schlongoso Maximus, or Jimmy Wanger, or Joe Schlong, or Ana Lentry (I'm going from memory, they might not be exact, but you get the drift).
 
The Leopard said:
Perhaps Martinghoul could answer this? He would have the relevant knowledge if I remember correctly.
Click to expand...
I personally don't use TA, as it's there's just not enough substance and rigor there for me. However, my attitude to it has changed over the years. Some of the changes have occurred as a result of my interactions over the past few years w/my boss, who has been in the mkt for 20y and is probably the best prop trader I know. If peeps are interested I can share a philosophy on TA that he shared with me that I find quite insightful.
 
Martinghoul said:
I personally don't use TA, as it's there's just not enough substance and rigor there for me. However, my attitude to it has changed over the years. Some of the changes have occurred as a result of my interactions over the past few years w/my boss, who has been in the mkt for 20y and is probably the best prop trader I know. If peeps are interested I can share a philosophy on TA that he shared with me that I find quite insightful.
Click to expand...

i am def interested martin(y)
 
Martinghoul said:
I personally don't use TA, as it's there's just not enough substance and rigor there for me. However, my attitude to it has changed over the years. Some of the changes have occurred as a result of my interactions over the past few years w/my boss, who has been in the mkt for 20y and is probably the best prop trader I know. If peeps are interested I can share a philosophy on TA that he shared with me that I find quite insightful.
Click to expand...

Thanks MG, I think a lot of people would be interested to hear about that from an institutional perspective. I am and Timsk, Steve et al will probably lobby for you to get a peerage.

If you don't mind another question, you aside, is TA/PA used much by prop traders in general?
 
The Leopard said:
Thanks MG, I think a lot of people would be interested to hear about that from an institutional perspective. I am and Timsk, Steve et al will probably lobby for you to get a peerage.

If you don't mind another question, you aside, is TA/PA used much by prop traders in general?
Click to expand...
Ha-ha, I am not sure what I'd do w/a peerage, but so be it...

Not sure what PA is, but yes, TA is used quite widely, in all its glorious varieties. I mean some of it is rather mind-bogglingly complex, like all this De Mark stuff. You won't be able to see the actual data lines 'cause there's way too many squiggly lines.
 
Martinghoul said:
Ha-ha, I am not sure what I'd do w/a peerage, but so be it...

Not sure what PA is, but yes, TA is used quite widely, in all its glorious varieties. I mean some of it is rather mind-bogglingly complex, like all this De Mark stuff. You won't be able to see the actual data lines 'cause there's way too many squiggly lines.
Click to expand...

Thanks for the reply. By PA I meant price action, so nobody is really sure what that means I suppose. Whatever people want, from what I can gather. I was talking mainly about trend lines, breakouts, support / resistance etc, rather than candles or whatnot. I would call that stuff more price action and the bollinger bands, mads, stochastics etc technical analysis. Not really sure if it's a valid (or correct) distinction though.
 
cablemonster said:
i am def interested martin(y)
Click to expand...
So his theory is based on the following observations. A market is a place where information is the most important and scarce resource. Reason for this is simply that the different mkt participants can't communicate with each other directly, much as they would like to. As a result, the mkt has come up with a somewhat stunted and extremely imperfect way of passing information around based on support/resistance levels on charts and other TA artifacts. So it's a language and that means a whole bunch of things. For example, trying to fit it into a rigorous statistical framework is hopeless. Claiming that it "works" or "doesn't work" is silly, because it's just not an applicable concept. Similarly, trying to come up with something crazily complicated is also silly, given it reduces signal/noise ratio massively.

That's the philosophy, FWIW...
 
Martinghoul said:
So his theory is based on the following observations. A market is a place where information is the most important and scarce resource. Reason for this is simply that the different mkt participants can't communicate with each other directly, much as they would like to. As a result, the mkt has come up with a somewhat stunted and extremely imperfect way of passing information around based on support/resistance levels on charts and other TA artifacts. So it's a language and that means a whole bunch of things. For example, trying to fit it into a rigorous statistical framework is hopeless. Claiming that it "works" or "doesn't work" is silly, because it's just not an applicable concept. Similarly, trying to come up with something crazily complicated is also silly, given it reduces signal/noise ratio massively.

That's the philosophy, FWIW...
Click to expand...

So is it kind of classic Edwards and Magee stuff? Sort of keep it simple and focus on the big things?
 
Martinghoul said:
So his theory is based on the following observations. A market is a place where information is the most important and scarce resource. Reason for this is simply that the different mkt participants can't communicate with each other directly, much as they would like to. As a result, the mkt has come up with a somewhat stunted and extremely imperfect way of passing information around based on support/resistance levels on charts and other TA artifacts. So it's a language and that means a whole bunch of things. For example, trying to fit it into a rigorous statistical framework is hopeless. Claiming that it "works" or "doesn't work" is silly, because it's just not an applicable concept. Similarly, trying to come up with something crazily complicated is also silly, given it reduces signal/noise ratio massively.

That's the philosophy, FWIW...
Click to expand...

thanks. Have you read aikins latest book?
 
cablemonster said:
thanks. Have you read aikins latest book?
Click to expand...
No, which one is that?
The Leopard said:
So is it kind of classic Edwards and Magee stuff? Sort of keep it simple and focus on the big things?
Click to expand...
I am not really familiar with Mssrs Edwards and Magee, tbh... But yes, simple is best, 'cause that's inherent in the concept of "language".

BTW, I should apologize to Monetae for hijacking his thread. Really sorry and happy to go elsewhere, if you prefer.
 
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