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Trading by the newspaper

  • #1
  • First Post: Jun 17, 2018 11:17am Jun 17, 2018 11:17am
"
In 1978, the tools of technical traders I consisted of chart paper, a calculator and a newspaper. Analyzing a trade was a slow and tedious process, severely limited by the time it took to perform the calculations. Trying different study periods was easier said than done.
Then the personal computer revolution came, breaking open a floodgate of opportunity for the serious trader by performing days' and weeks' worth of calculations in just minutes or seconds.
First to seize the advantage was a small group of traders and analysts who called themselves "The Technical Analysis Group" (TAG). Led by Tim Slater, the group mapped out its technical requirements to a team of software engineers. …"

What did they calculate and why ?
Does anyone have any info or ideas ?
The truth is hidden from you
  • #2
  • Jun 17, 2018 11:23am Jun 17, 2018 11:23am
Lane described the origins of the %K and %D stochastic oscillator as follows:
“These were research days: 20 hour days, all calculating done by hand. The staff expanded to five. I shall not mention names, as they are all well-off financially, still trading, and don’t wish to be bothered.
In our research, our indicators were running all over the page, so we developed the technique of expressing them as a percentage of 100.
We developed %A, found it didn’t work. We went on to research and to follow 28 oscillators. As we progressed through the oscillators we were developing, we expressed them as percentages as well; thus: %D, %K, %R.….
In the sixties, we pioneered using the computer to test our oscillators.”


“In 1954, I joined Investment Educators as a junior analyst….
After I joined the six-man, no-pay research staff, we discovered oscillators. We researched and experimented with over sixty applications, with the result that we found about twenty-eight that had predictable values. In charting our cumulative oscillators, we found they were running all over the chart paper. Soon, we had chart paper running all over the walls. So, we struck upon the technique of reducing these oscillators to a percentage. We used the alphabet to differentiate one from the other: %A, %B, etc. Each one was reduced to a percentage indicator primarily so we could manage to keep them workable on the chart paper!
As a result of all the hard work (the 14-hour, mostly by hand, no-pay days), we decided that the most reliable indicator was %D for ‘% of Deviation.’ The basic premise of %D is that momentum leads price.”
The truth is hidden from you
  • #3
  • Jun 17, 2018 11:28am Jun 17, 2018 11:28am
Anyway this will die off just like all the others...
Anyone interested for a slack/discord to dig in the past ?
The truth is hidden from you
  • #4
  • Jun 18, 2018 12:45am Jun 18, 2018 12:45am
Quoting MaxenshteinD
Lane described the origins of the %K and %D stochastic oscillator as follows: “These were research days: 20 hour days, all calculating done by hand. The staff expanded to five. I shall not mention names, as they are all well-off financially, still trading, and don’t wish to be bothered. In our research, our indicators were running all over the page, so we developed the technique of expressing them as a percentage of 100. We developed %A, found it didn’t work. We went on to research and to follow 28 oscillators. As we progressed through the oscillators...
A different thread and topic. Like it...

Goes to show how much we have taken for granted...
  • #5
  • Jun 18, 2018 2:33am Jun 18, 2018 2:33am
Quoting aaven
{quote} A different thread and topic. Like it... Goes to show how much we have taken for granted...
However you were the only one to reply..
I was attempting to bring interes to the origins of technical analysis in order to jointly research it.
The truth is hidden from you
  • #6
  • Jun 18, 2018 11:01am Jun 18, 2018 11:01am
Quoting MaxenshteinD
" In 1978, the tools of technical traders I consisted of chart paper, a calculator and a newspaper. Analyzing a trade was a slow and tedious process, severely limited by the time it took to perform the calculations. Trying different study periods was easier said than done. Then the personal computer revolution came, breaking open a floodgate of opportunity for the serious trader by performing days' and weeks' worth of calculations in just minutes or seconds. First to seize the advantage was a small group of traders and analysts who called themselves...

I'm pretty sure it was deep math like time series, option pricing etc. Basically, a progress in computer-aided calculations made it possible to estimate which factors do affect the price while others not. Efficient market hypothesis says market yield should converge to zero among traders but I would say it's not true since human actions can be well explained statistically and do show some patterns which can predict future prices.
  • #7
  • Jun 19, 2018 6:22pm Jun 19, 2018 6:22pm
Quoting available
{quote} I'm pretty sure it was deep math like time series, option pricing etc. Basically, a progress in computer-aided calculations made it possible to estimate which factors do affect the price while others not. Efficient market hypothesis says market yield should converge to zero among traders but I would say it's not true since human actions can be well explained statistically and do show some patterns which can predict future prices.
Well said, I really agree with your opinion. By the way, there is no difference on the success ratio, till now below 10%.
  • #8
  • Last Post: Jul 29, 2018 4:50am Jul 29, 2018 4:50am
Trading has been always a thrilling profession where a trader needs to consider the significant market news as well the changes in the global economy along with important happening in various domestic economies. A trader used news papers to get an idea about the environment and upcoming changes in world and domestic economies. However, with the passage of time, we are now able to use various trading software which are helping us to get acquaintance with the market situation.
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