shouldnt we traders be worried about algorithmic trading taking over?

[jammy1337]

but this is going to change every strategy out there, all the time tested patterns, everything, everything will have to start from scratch, what is the point in me learning more if what i learn wont be useful in the not too far future? sorry im a bit of a pessimist

 

[pedro01]

I think we should be more worried about what happens when the algo programs crash the market

 

[N Rothschild]

mate half the classic paterns dont even work anyway..they only work when the fundementals are on side, one of my main strats is taking failed breakouts of these paterns

 

[jammy1337]

you say head and shoulders don't work? you say bollinger/MA/support/resiistance breakouts don't work? i disagree

 

[N Rothschild]

they do if the fundmentals support the move, thats what people dont seem to understand

 

[jammy1337]

lol i dont know why people would play them without the fundamentals, the fact is, there are so many people playing themm regardless of fundamentals that they do work . Anyway back to algo

 

[N Rothschild]

cant reason with a fool

 

[jammy1337]

you callin' me a fool?

 

[N Rothschild]

well your asking me if these patterns work or not, i tell you no..then you tell me im wrong..so why ask in the first place

 

[jammy1337]

silence. thats not my point anyway, its whether these patterns, with the fundamentals will work even with 90% of all trades by automated systems

 

[pedro01]

mate half the classic paterns dont even work anyway..they only work when the fundementals are on side, one of my main strats is taking failed breakouts of these paterns

So what you are saying is that these patterns don't work but that you trade them successfully ?

Don't matter if you trade 'em or fade 'em - if you make $$$ - they are working for you.

 

[Technically Fundamental]

This forum is turning $hit

 

[jammy1337]

algorithms are turning trading to $hit

 

[N Rothschild]

So what you are saying is that these patterns don't work but that you trade them successfully ?

Don't matter if you trade 'em or fade 'em - if you make $$$ - they are working for you.

well they dont work in the traditional sense lol

 

[jammy1337]

sigh, im just wondering how the hell im going to work around these algos when they are huge

 

[N Rothschild]

algorithms are turning trading to $hit

maybe you just cant trade and need a scapegoat?

 

[jammy1337]

can't trade? yeh, that's why i quadrupled my £500 account in 4 months- i can trade, and very well. All im saying is what does the future hold

 

[gooseman]

algorithms are turning trading to $hit

only if you are one-dimensional

 

[leovirgo]

sigh, im just wondering how the hell im going to work around these algos when they are huge

Look at the chart of INDU(dow) over the last twenty years. Moves in early 1990s was so much different from that of the last few years. But two things remain the same.

i) fear and greed will drive the markets, not machines
ii) buy price must be lower than sell price to make a profit

Thats all you need to know to trade profitably, not MAlines or stochastics turning points or any other TA.

 

[jammy1337]

thanks lion dude, i understand that markets change daily and that sticking with one trading strategy is a one way ticket to broke-ville. However i d think that TA is necessaryin some cases, for me i intrday scalp and so it is very useful. My fear is that algos will become so popular that daytraders wont be around, i love trading, i dont want it to be replaced by some nerds' master formula