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The History Of Real Time Chart Based Trading

  • #1
  • First Post: Edited 8:29am Mar 6, 2017 2:48am | Edited 8:29am
The internet was released to the public only around 25 years ago around 1992.

How were financial markets live prices streamed in real time in charting software before the internet was released?

Or did people not use real time live streaming charts in relation to trading financial markets before the internet was invented/released to the public around 1995?

Thanks.
  • #2
  • Mar 6, 2017 4:06am Mar 6, 2017 4:06am
Quoting Nebula
The internet was released to the public only around 22 years ago in 1995. How were financial markets live prices streamed in real time in charting software before the internet was released? Or did people not use real time live streaming charts in relation to trading financial markets before the internet was invented/released to the public around 1995? Thanks.
I know of people (public service) that used CEEFAX that was broadcast on terrestrial TV in the UK. 15m delayed data of course & only prices.
I think you would have constructed your own charts using closed prices.
It never gets easier, you just get better
  • #3
  • Mar 6, 2017 8:22am Mar 6, 2017 8:22am
Did computer based real time charts (and all computer based charts that require a data download update, even if only end of day charts) only come into existence around 1992 when the internet was released to the general public?
  • #4
  • Mar 6, 2017 10:13am Mar 6, 2017 10:13am
As an example -
Quote
https://en.wikipedia.org/wiki/CMC_Ma...0:_Early_years
1989-2000: Early years[edit]
The company was founded in 1989 by Peter Cruddas as a Foreign Exchange market maker under the name 'Currency Management Corporation'. The name was later abbreviated to CMC and then changed to CMC Markets in September...

So from this i am guessing that real time (or any type of computer based download dependable) charts for financial markets did not exist prior to the release of the internet.


But still, technical analysis has a long history, and without real time charts and prior to computers and the ability to get at least weekly updated data, i cant figure out how technical analysis was used to inform trading decisions....https://en.wikipedia.org/wiki/Technical_analysis
  • #5
  • Edited 10:43am Mar 6, 2017 10:33am | Edited 10:43am
https://en.wikipedia.org/wiki/Technical_analysis

Quote
Ticker-tape reading[edit]
Main article: Ticker tape
Until the mid-1960s, "tape reading" was a popular form of technical analysis. It consisted of reading market information such as price, volume, order size, and so on from a paper strip which ran through a machine called a stock ticker. Market data was sent to brokerage houses and to the homes and offices of the most active speculators. This system fell into disuse with the advent of electronic information panels in the late 60's, and later computers, which allow for the easy preparation of charts.

Quotation board[edit]
Another form of technical analysis used so far was via interpretation of stock market data contained in quotation boards, that in the times before electronic screens, were huge chalkboards located in the stock exchanges, with data of the main financial assets listed on exchanges for analysis of their movements.[78] It was manually updated with chalk, with the updates regarding some of these data being transmitted to environments outside of exchanges (such as brokerage houses, bucket shops, etc.) via the aforementioned tape, telegraph, telephone and later telex.[79]
This analysis tool was used both, on the spot, mainly by market professionals for day trading and scalping, as well as by general public through the printed versions in newspapers showing the data of the negotiations of the previous day, for swing and position trades.[80]
Despite to continue appearing in print in newspapers, as well as computerized versions in some websites, analysis via quotation board is another form of technical analysis that has fallen into disuse by the majority.

So basically real time (and all computer based) charts are a very recent phenomenon in terms of widespread availability to and use by people.

Also there is not a lot of evidence that chart based trading consistently profitably enough is realistically attainable for many people.

And judging by some of the garbage that gets posted online as sorry excuses for chart based trading strategies that work consistently well enough (not!), maybe charts are no more than a fancy looking graphical representation of what has already happened (its too late now!), with little predictive power, and mainly a waste of space.

But computer based charts are useful to post cherry picked screenshots on forums to show what you would/could/should have done if actually operating your refined super trading system, and not just posting screenshots of it....
  • #7
  • Mar 14, 2017 6:45am Mar 14, 2017 6:45am
Quoting Koop
{quote} good one trying to initially sound like you were actually looking to get educated or enlightened only to prematurely blow your wad before you could garner enough attention. Just another sucker who failed miserably at technical analysis crying about how ineffective and bogus it is. If you don't like it or it does not work for you, move on and find what does instead of wasting your time trying to start up stupid arguments or discussions to console yourself.
You may have a point.

But there's also a good chance that you are are talking complete B.S. and that the info i have posted is valid and relevant no matter how much you do not want to hear my truths.
Also, your toxic putrid abrasive attitude is not one that i consider conducive to enlightening intellectual discussion, so if you have nothing constructive to contribute - please jog on.
  • #8
  • Mar 14, 2017 7:32am Mar 14, 2017 7:32am
Quoting Nebula
{quote} You may have a point. But there's also a good chance that you are are talking complete B.S. and that the info i have posted is valid and relevant no matter how much you do not want to hear my truths. Also, your toxic putrid abrasive attitude is not one that i consider conducive to enlightening intellectual discussion, so if you have nothing constructive to contribute - please jog on.
how do you trade then ? fundamentals ? or is it garbage too?
  • #9
  • Edited 6:44pm Mar 14, 2017 8:52am | Edited 6:44pm
Quoting metta87
{quote} how do you trade then ? fundamentals ? or is it garbage too?
That is not relevant to this discussion.

And as i understand it, the price movements you see on a spot forex chart are not really due to human actions, but Automatic computer algorithms. So good look with making any true sense of what these unknown programs do in order to match or/and outsmart or/and second guess them.
  • #10
  • Mar 14, 2017 8:05pm Mar 14, 2017 8:05pm
Quoting Nebula
{quote} That is not relevant to this discussion. And as i understand it, the price movements you see on a spot forex chart are not really due to human actions, but Automatic computer algorithms. So good look with making any true sense of what these unknown programs do in order to match or/and outsmart or/and second guess them.
how do you know the forex price movement is caused by auto computer algorithms ? And even if that is truely the case, what makes you think forex still can't be traded ?Thanks.
  • #11
  • Mar 14, 2017 10:47pm Mar 14, 2017 10:47pm
Quoting Nebula
The internet was released to the public only around 25 years ago around 1992. How were financial markets live prices streamed in real time in charting software before the internet was released? Or did people not use real time live streaming charts in relation to trading financial markets before the internet was invented/released to the public around 1995? Thanks.
In the mid-1990s I subscribed to a charting service that would mail printed charts to me on a weekly basis. They were all daily, weekly, and monthly timeframe. They would be complete through the prior week, and would usually arrive on Tuesday. Meanwhile my broker would automatically fax the previous day’s open, high, low, and close prices each morning, for the instruments I was most interested in. The fax machine was considered high tech back then.

I would turn around and draw on the charts according to the new price data, and look for simple chart patterns. I’d also attempt to keep up with fundamentals. Then I would telephone my broker when I decided to enter a trade.

Around late 1996 or early 1997, a website started posting the OHLC info online a couple hours after the markets closed. Dial up modems were so slow back then that it took quite a while to connect and bring up a full page. But it was still a nice improvement over getting price info the next morning.

Residential broadband internet became available around here about five years later, and that opened things up for real time charts and trading. But it wasn’t until 2007 that I started using them.
  • #12
  • Mar 14, 2017 11:21pm Mar 14, 2017 11:21pm
The daily data of top stocks was posted in the newspaper in the Financial Section. Don't know if Forex was ever there because in those days I didn't know Forex existed.

Wall Street traders who did not have a tick machine often used the Point and Figure technique. Prior to Wall Street, technical traders used candlesticks, but other than commodities, I think most trading was done purely on fundamentals, and was more in the "investing" realm.

Modern computers can perform trigonometry functions live now, so why bother with ancient methods? You can include it that candlesticks, Fibonacci lines, pivot lines, and all the associated patterns. They were based on the end-of-day (week, month) generation and no longer apply to anyone who has upgraded.
You cannot be extraordinary by being normal
  • #14
  • Dec 22, 2017 7:56am Dec 22, 2017 7:56am
Charts are themselves just a mere visual indication representation of what has happened to price over past time, and where price is right now. Whether or not added technical analysis indicators are placed on a chart.

Traders are lucky to break even.

Over 80% of traders (people who try it) do fail to profit overall because of one or more of these reasons -

1. they do not know what will happen next,
2. they must pay a broker spread that must be covered before the trade moves into profit.
3. they have to limit losses with the use of a stop loss, as unlimited draw down is not possible or sensible.
4. human error.
5. computer/technological problem/s.

Merry christmas.
  • #15
  • Last Post: Dec 22, 2017 11:15am Dec 22, 2017 11:15am
Real-Time Trading has existed since the dawn of mankind, but Real-Time Chart Based Trading? Most likely since the dawn of the existence of access to real-time information. It's just natural human tendency to aggregate data into groups.

However what do you constitute as Real Time, since there is also apparent lag between you receiving charting information at whatever broker, and the actual price movement. Whether it be half a second, a minute, or an hour, you're still not receiving truly "Real-Time" Data. But let's just say it's close enough to real time data.

I would say the traders, to trade real-time, had to have access to an exchange, and would trade based on price stream, and the data aggregated into a chart at the end of day. I guess it's all relative. It's compared to the person next to you. If everyone received data one hour later, then everyone would be trading Real-Time. However if a select number of individuals received information on the dot, and you're receiving it an hour later, then you're not trading Real-Time. Technology has helped close the gap.
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