Wednesday 6 January 2016

Technology Wins! Algos Take First prize.

I saw an interesting article in this morning's Sydney Morning Herald here. My day starts with reading this newspaper, not only because its the newspaper I grew up reading but also because the international dateline is very near Sydney and the day starts there so by the time I wake up in Europe, the news has been well researched and written and I get a good summary of the day before.

What this article talks about is something that I started believing in 1979 or even before, that technical analysis is the only way to get a true idea of what is happening to a particular instrument in the market and that fundamental analysis is flawed due to latency and hidden information.

There can be no better technical analysis than orderflow and price action in context.Using algos to hybrid trade takes this approach to its logical conclusion. Not using algos to action and see the orderflow puts the trader at a significant disadvantage and at the other side of CP traders' trades.

3 comments:

  1. jenrique42.

    No se trata de quien gana o de quien pierde, sino mas bien de una adaptacion a la nueva situacion, evidentemente no podemos luchar ni mucho menos batir a un ordenador, mejor dicho a la PROGRAMACION que tiene, pero si la podemos estudiar y ver sus efectos.
    Es hay donde nosotros tenemos la ventaja sobre las maquinas, y es lo que tenemos q aprovechar, las maquinas repetiran una y otra vez su programa, sin descanso, y nosotros detras de ellas NUNCA delante
    Si llegamos a reconocer sus PATRONES entonces sabremos donde entrar y donde salir CON TODA SEGURIDAD

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  2. hello,one more question reguarding the logik ulitmate renko bars,would it be a profitable strategy to trade if you used a higher tick chart and a higher reversal size and trade every swing? I notice on you renko charts that you missed a lot of swings that would have been profitabe. thank you

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    Replies
    1. The bigger the bar size you create the further from the turning point you will be able to enter the trade. Shorter bars place you closer to the turning point but give more noise. Contact Anthony at PureLogik. He's a great resource on this.

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