Indicatorless Trading Strategy

[dbphoenix]

Darvas method worked and still works, but he also used fundamentals. He called himself a techno-fundamentalist investor. Read his book. The best ever written about stock trading.

To clarify, the post you're quoting is not all mine, and it was made over a year ago. I've read the book, though it's hardly the "best ever written about stock trading". Whether the method "works" or not depends entirely on what one is trading and when he's trading it. If one expects magic, he may find himself being stopped out so much that he is unable to recover.

Don't know why you've been touting Darvas so heavily over the past week. Buying breakouts from a range is nothing new, nor was it new in the 50s, and it's hardly the grail.

 

[SOCRATES]

Did a search on google cannot find orb but found Darvas Box which prompted the thought - an indicator by any other name would be as sweet, apologies to William S.

I do not want to get involved in an extended discussion - but when is an indicator not an indicator?

Regards

bracke

Only on one occasion.

 

[vishwamv]

Hi

Iam interested in Ross hook trading style.....Have got too many questions in that.....still working out on trial and error basis on demo account to learn.... would be great to hear from one of the experienced trader who uses in their daily trading...
Thanks, Cheers
Vp

 

[kaZza sg]

This fellow here is claiming to be making close to 500pips a day? He says his bad day isn't even close to below 100, or less. That to me is simply amazing, why is it so amazing? He says that

Technical, and Fudamental Analyst ISN'T necessary. Thus means that he doesn't trade on charting, or even market calculationed information?
Eitherway, he says charts and price prediction is a waste of time and limits your pip returns, gains over losses.

Here, look for a poster by the name of "Dr.Zogg"
Reportedly, he's STILL making a killing.
http://www.moneytec.com/forums/showt...0&page=30&pp=8

A strong money management system of good fractuals is all i can think of and oh yes. His method is automated aswell. He says it's not possible to use his system WITHOUT the use of a computer, he says by human hand it's impossible. Could his method also be as powerful as one of those banking and broker trading methods? Does it require a large margined account to do this, what he is doing? Price action is the only strategy that i can think of.

Or, just another snake oil system that works for awhile, then stops workings?
He also says, before i forget, that predict direction, prediction, or even market conditions just don't matter. He says indicators are useless and a total waste of time and they actually lose you pips even if they are used correctly 100% of the time.

Can someone respond? There are automated systems out there that are this strong? He says he's not even a good trader, nor has ANY market experience, he says it's all in the maths. Well, there is the link, read it fully and tell me what you think about his system. By the way, he's not selling it, but if it's this good. I can understand whynot.

 

[nobrainer]

FetteredChinos,
As time goes by, I find trading has very little to do with technicals and more to do with 'experience'.
As a daytrader, my experiences have taught me that it's best to keep things very simple.The 'money' is on level 2 and its dictates are greed and fear.The same scenarios repeat themselves every week and every day.

Greed and fear will never change.

As an example, if a company warns and its stock falls premarket by 25%, the majority of traders(full time) will be looking to buy the dip.The good traders will always be those shorting immediately cos they want to take advantage of the panic.Another 5/10% is normally easily achieved in such a scenario and when traded in a good size can be very profitable.What 'experience' has taught me is that the 'easy' money is earnt during the initial panic.Once this has subsided, you get 2 way traffic and that's harder to trade.This type of 'event ' trading has little to do with indicators but more to do with instinct.

There are times when you can just tell what a share price will do intraday.It's mainly a function of instinct because you can see the 'greed or fear' even on a computer screen!! i'm sure there are a few other traders who have experienced this or am I just mad ? 🙂)

Anyhow, I could bore people to death with so many examples of the above but suffice to say, I've found that its most profitable to shorten time frames to the absolute minimum and increase trade sizes exponentionally in my case.The only indicator ,as such ,that I use is 'money management' and even that is now more a function of instinct rather than anything arbitrary.

 

[navlani]

This fellow here is claiming to be making close to 500pips a day? He says his bad day isn't even close to below 100, or less. That to me is simply amazing, why is it so amazing? He says that
Can someone respond? There are automated systems out there that are this strong? He says he's not even a good trader, nor has ANY market experience, he says it's all in the maths. Well, there is the link, read it fully and tell me what you think about his system. By the way, he's not selling it, but if it's this good. I can understand whynot.

Hi kaZza sg. I am a MoneyTec member as well. I read that thread. What I probably presume is that he is using Neural Networks (NN) to trade. Since NN is based entirely on computer processing, he cant do without one.

And since there are no predefined Entry-Exit rules in NN, he is not selling the system.

 

[tech_trader]

One example of an indicatorless strategy I've seen was using martingale theory. Basically, you can use the method on any entry signal. If the market goes against you x points, you double your position from 1 to 2, 2 to 4, 4 to 8 and so on. Each time your position increases, you move your profit target to your previous entryprice, which would be x points above your last entry. By doing so, when you hit your profit target, you will have x points in the bank.

The problem with the strategy is it hurts really bad when the market doesn't come back to your profit target, and you will wipe out all of the profit from your small winners (if not more). The idea is pretty good, but it's not realistic.

 

[Charlton]

Analysis, Experience and Instinct

FetteredChinos,
As time goes by, I find trading has very little to do with technicals and more to do with 'experience'.
As a daytrader, my experiences have taught me that it's best to keep things very simple.The 'money' is on level 2 and its dictates are greed and fear.The same scenarios repeat themselves every week and every day.

Greed and fear will never change.

As an example, if a company warns and its stock falls premarket by 25%, the majority of traders(full time) will be looking to buy the dip.The good traders will always be those shorting immediately cos they want to take advantage of the panic.Another 5/10% is normally easily achieved in such a scenario and when traded in a good size can be very profitable.What 'experience' has taught me is that the 'easy' money is earnt during the initial panic.Once this has subsided, you get 2 way traffic and that's harder to trade.This type of 'event ' trading has little to do with indicators but more to do with instinct.

There are times when you can just tell what a share price will do intraday.It's mainly a function of instinct because you can see the 'greed or fear' even on a computer screen!! i'm sure there are a few other traders who have experienced this or am I just mad ? 🙂)

Anyhow, I could bore people to death with so many examples of the above but suffice to say, I've found that its most profitable to shorten time frames to the absolute minimum and increase trade sizes exponentionally in my case.The only indicator ,as such ,that I use is 'money management' and even that is now more a function of instinct rather than anything arbitrary.

nobrainer
No you are not mad ! There are plenty of us who do not use indicators. Look at the thread No Indicators Revisted for example.

I guess it starts with patterns, price analysis, volume analysis (where relevant), fibs, waves, fractals. Some of these might be regarded as indiators too - it depends upon your point of view.

Then with experience in general and experience with the specific instrument it becomes more and more instinctive.

Charlton