shouldnt we traders be worried about algorithmic trading taking over?

[jammy1337]

no, i can scalp, but not in and out 12 times a day

 

[GladiatorX]

no, i can scalp, but not in and out 12 times a day

How manytimes a day?

 

[jammy1337]

https://customers.reuters.com/community/equities/americas/machines.aspx? this is worrying lawl

 

[jammy1337]

well the day trading pattern is something like in and out 4 times a day 5 days in a row, if i do that then my account gets banned for like 3 months

 

[GladiatorX]

You scalp the US stock market, but claim not to day-trade... And you do less than 12 trades per day?
How many do you do then!?

 

[jammy1337]

lol 2-3 do you haqve skype add me TAjammy

 

[GladiatorX]

lol 2-3 do you haqve skype add me TAjammy

You do 2-3 trades a day? But haven't got $25,000 - Therefore thats a lie?

 

[jammy1337]

wut evar

 

[jammy1337]

not even three, in fact most days 1-2, its whether you do 3 or above for 5 days in a row

 

[GladiatorX]

not even three, in fact most days 1-2, its whether you do 3 or above for 5 days in a row

lol No, its not.

 

[Black Swan]

not even three, in fact most days 1-2, its whether you do 3 or above for 5 days in a row

What does this mean?

 

[Jason101]

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.

Just had a look, thats amazing

 

[counter_violent]

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

Eh...news goes around the globe in seconds....and you think that algo programs can cause market crashes.....soon get caned wouldnt they when theres no fundies to support the position.

Crashes don't happen in 5 mins flat.

 

[GladiatorX]

What does this mean?

He claims to trade US stocks with $2,000, executing 1 or 2 trades per day. Upon question about the law against day-trading with an account under $25,000, he thought that it was 3 or more trades per day for 5 days... When in actual fact its 4 trades over the course of 5 days... If this were broken, accounts would be closed for 90 days...

Showing that making £500 into £2000 in 4 months, was actually just a lie.

 

[trader_dante]

If algos are making life difficult for you, you could try two things:

Get to know when the algos are on and what they are doing and how they are doing it. (can be done with enough screen time and is the preferable option for day traders)

Or move up a TF with wider stops. Just my experience but every single pro trader I heard moaning about algos was a scalper or very short term trader saying things like:

"f*cking algos upticked the high/downticked the low"

"wtf, I bought the Stoxx here and its just blipped down 6 TICKS. OMG. Those f*cking algos - there is no real size here...the bids being spoofed then pulled..."

etc etc

As someone else said: Adaptation is key. If there is a problem, you consult with yourself about what the problem is and you work out a way to solve it.

 

[Skill Leverage]

no, i can scalp, but not in and out 12 times a day

Try 100+ trades in a day

 

[trader_dante]

Try 100+ trades in a day

Don't boast about it!

 

[GammaJammer]

https://customers.reuters.com/community/equities/americas/machines.aspx? this is worrying lawl

Only if you fear change. Which most here seem to, even though they are the chief beneficiaries of it.

Consider it this way - take the FX market for example (I know we're largely talking equities here, but bear with me).

When I first sat down on a trading desk (1993) T'internet was just a gleam in the eye of assorted dudes in San Fran. Clients called banks. Banks made them a barn door price, clients, having no real clue where it was trading, dealt, said thank you, clicked off. Banks made a ton of money.

Fast forward 15 or so years. Retail traders can stick a couple of grand in an account and trade on 2 pip spreads in euro, 3 in cable etc etc. Basically interbank pricing, give or take a pip or two here and there.

The driver? Algorithmic execution and the rise of, and increasing dispersion of technological solutions. The very stuff you guys are running scared from is pushing back the boundaries of what's possible. There wasn't retail access to equity ecns in anything like the same way 15 years ago either - this isn't just an FX thing.

Just another viewpoint.

 

[jammy1337]

well i came to a conclusion on these algos- that they were made to play the patterns that were already there. Althugh they could trade the setup much quicker than a human, i suppose 90% of trades being algos, we will find out some patterns , and the whole cycle of change begins again. The only thin im worried is if that the algos will take over the patterns we play so quick thatby the time we process it the opportunity is over. But traders work around it , no machine , ever, is perfect, AI isnt there yet. Give it 40-50 years maybe- but we'l all be on our firkkin' yachts by then!

 

[Technically Fundamental]

well i came to a conclusion on these algos- that they were made to play the patterns that were already there. Althugh they could trade the setup much quicker than a human, i suppose 90% of trades being algos, we will find out some patterns , and the whole cycle of change begins again. The only thin im worried is if that the algos will take over the patterns we play so quick thatby the time we process it the opportunity is over. But traders work around it , no machine , ever, is perfect, AI isnt there yet. Give it 40-50 years maybe- but we'l all be on our firkkin' yachts by then!

After reading that I've deduced that you cannot trade at all and nothing you say will convince me otherwise.