Monthly Archives: May 2012

Machine Generated DIA Patterns and Trading Systems

The steps are presented here for discovering price patterns in DIA (SPDR Dow Jones Industrial Average) historical daily data using the Price Action Lab search function, testing the results in an out-of-sample and then creating a trading system. It is shown that Price Action Lab can identify … Continue reading

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HFT is Not the New Generation of Trading Systems

HFT (High Frequency Trading) is the last stage in the evolution of computerized algo trading, where the last frontier and variable to optimize is execution speed. HFT algorithms do not do anything more sophisticated than what pit traders, market makers … Continue reading

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Consistent Losers in the Markets Are as Rare as Consistent Winners – The Paradox

I will name this the “Trading System Inversion Paradox”. The paradox says that being a consistent loser in the markets is as hard as being a consistent winner. The proof of this apparent paradox is very easy and requires high school level math. … Continue reading

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Facebook Saved the Computer Industry

Many articles are questioning the value of FB and the fact that many people would suddenly become millionaires and some billionaires. I will try to explain here the real value of this company for the economy, not the value speculators or investors … Continue reading

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An Excellent Call by Peter Brandt for a Top in Russell 2000 Index

Although I am critical of classical chart patterns for various reasons detailed many times in this blog and I had criticized last year’s call by Peter Brandt for Dow 4,000 solely on technical grounds, I also want to be fair in this blog … Continue reading

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A Warning to all Bloggers Who Provide Market Analysis

This is a warning to all fellow bloggers who provide free market analysis: Be wary of anyone who appears eager to learn from you because it may be a trap and you may get into trouble if you are not registered with … Continue reading

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