Is it possible to reinvent the wheel? | Page 2 | Forex Factory

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Is it possible to reinvent the wheel?

  • #21
  • Jul 4, 2021 9:12pm Jul 4, 2021 9:12pm
Quoting jmn5611
{quote} And, just how do we know that you are part of the 0.1% who is a trader? Asking for a friend.
Hi jmn5611

I trade live with ryuryu most nights, I can vouch he knows what he's doing.
Also don't ask him about Friday's trading results or he may get a even bigger head

Cheers Rick
Trading thin liquidity at the boundary of the charts
  • #22
  • Jul 5, 2021 2:53am Jul 5, 2021 2:53am
Quoting RickM
{quote} Hi jmn5611 I trade live with ryuryu most nights, I can vouch he knows what he's doing. Also don't ask him about Friday's trading results or he may get a even bigger head Cheers Rick
Alright. I know you know what you are doing. So I will leave him be.
If you are good at something, never do it for free--Joker
  • #23
  • Jul 5, 2021 4:11am Jul 5, 2021 4:11am
Quoting joyny
{quote} Allways wonder how "red news" are processed... How many people involved and how much time before "official announcement" drafts of announcements exists and who have access... For example in stocks... Before company anounces earnings report... And there exists oportunities to establish an ofshore company... and trade... Just thinking...
Never trade stocks seriously. Zero knowledge about it. Once I was trying to trade cheap pharmacy stocks using finviz dashboard to find overbought areas. It was not so good because in most cases you just can't short. It is not allowed by their rules. So I stop doing this. Not fair.

Little trader like me can survive only exploiting market insufficiency the big player are not interested in. To find it I don't need to understand how market works, how news works. I don't have and will never have such an insider information. So why waste time thinking about it?
Observer effect
  • #24
  • Edited 6:30am Jul 5, 2021 6:16am | Edited 6:30am
Possible or not it depends on the knowledge of the trader. There are so many naysayers on this forum. Surely this and that is not possible... Exploiting inefficiency of the market depends on your knowledge whether it's a rising or falling market. Price rise because it's undervalued. Price fall because it's overvalued, a simple logic that everyone understand. The master algo creates this type of over/under price valuation. That's the real edge of forex market. TA and FA is useless in an algo driven market. Volume data is the reaction to the master algo manipulation. All these methods will not tell the trader if it's over or under valued price. Will you have taken this GU undervalued long trade and exit at the day high? Do you know that it's a bullish GU from Aussie open today? Do you know where sit the edge on this chart? Go figure.

Edit - https://www.forexfactory.com/thread/...6#post13434386
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Know what you trade
  • #25
  • Jul 5, 2021 6:30am Jul 5, 2021 6:30am
Quoting BWilliam
Possible or not it depends on the knowledge of the trader. There are so many naysayers on this forum. Surely this and that is not possible... Exploiting inefficiency of the market depends on your knowledge whether it's a rising or falling market. Price rise because it's undervalued. Price fall because it's overvalued, a simple logic that everyone understand. The master algo creates this type of over/under price valuation. That's the real edge of forex market. TA and FA is useless in an algo driven market. Volume data is the reaction to the master...
Hi BWilliam

Perhaps the volume data shows the big player trading their stragey's.
Price falls because volume collapses on the order flow books - if it continues to fall its because the players decide to make money.

The Algo is there only to fill gaps - it has no itelligence but just a simple auction code thats flawed.

Round two but hey great trade

Cheers Rick
Trading thin liquidity at the boundary of the charts
  • #26
  • Jul 5, 2021 7:47am Jul 5, 2021 7:47am
Quoting ryuryu
{quote} Never trade stocks seriously. Zero knowledge about it. Once I was trying to trade cheap pharmacy stocks using finviz dashboard to find overbought areas. It was not so good because in most cases you just can't short. It is not allowed by their rules. So I stop doing this. Not fair.
Easy to trade when know trend in long term. For blue-chip companies, long-term trend is UP. Because pension funds buy blue-chip stocks no matter what price. Therefore there is always demand and pressure to go UP.

Yes, shit can happen for example General Electric stocks. It went down starting from 2017 and several years down. Because of corruptive management which did bad purchases. Management changed - will see where GE will go now.

See MSFT buy the dips results in my TE attached. All exposed. All deals tracked. MSFT raised 19% but trading dips earned 43%.

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Here with MSFT trading can 100% say do not invent the wheel again... just simple logic... buy the dips. Nothing more. Stick to strong stocks and buy the dips.
  • #27
  • Jul 5, 2021 8:00am Jul 5, 2021 8:00am
Quoting BWilliam
Exploiting inefficiency of the market depends on your knowledge whether it's a rising or falling market. Price rise because it's undervalued. Price fall because it's overvalued, a simple logic that everyone understand. The master algo creates this type of over/under price valuation. That's the real edge of forex market. TA and FA is useless in an algo driven market. Volume data is the reaction to the master algo manipulation. All these methods will not tell the trader if it's over or under valued price.
May be you are right, but personally I don't care if market is rising or falling. I tried to check it to make a decision but it just add some mess. A lot of people are using higher TFs to detect the trend but I have found it useless. The only thing I can get for sure using that approach is to stuck with long on the top and stuck with short at the bottom. So all these higher TF detections are now disabled in my trading. Imbalance rule. When there are a very big difference between buys and sells. Also I'm using distance. Because market always wants to go to "zero", to get its balance. That's why, for example, I'm using moving averages and stochastic as take profit targets, not as entry.
But hey, who said I'm right? There is no absolute truth or absolute right approach. I know a lot of traders who are not using volume in the trading and they are successful. Why not. I just like to use logic. If something is too away and there are big imbalance it will go back. In there is imbalance found the market will reveal it soon. So why not to exploit it? We are in 2021, there are computers everywhere. Why not to have a little advantage using math? Of course there are a lot of traders who a profitable drawing rectangles and lines, who are using fibonacci and so on. It doesn't matter. Let them trade whatever they are best at.
Observer effect
  • #28
  • Jul 6, 2021 7:17am Jul 6, 2021 7:17am
I have reinvented three wheels and now I need the fourth so I can make a super super car.
Where there is a will, there is a way.
  • #29
  • Jul 6, 2021 12:26pm Jul 6, 2021 12:26pm
Quoting romulorios
You who use that phrase, are you claiming that nothing else can be created within the world of graphics? If so, I believe this is a frivolous statement on your part, as nothing is so good that it cannot improve. Topic open for discussion.
Is this thread focused on whether it is possible, or advisable, to create a new approach to analyzing and presenting forex data? And you'd want to do this because the existing universe of trading stations is inadequate or perhaps antiquated?
  • #30
  • Jul 6, 2021 12:58pm Jul 6, 2021 12:58pm
Quoting ryuryu
Don't listen to them. 99.9% of "traders" here are not traders they just post the same bullshit about rr, sl, trading philosophy etc again and again. Research, discover, try. And you will find. Don't waste your time for youtube, mentors, free winning strategies and other bullshit. Or just read it for daily fun Trading is similar to professional sports. You have to practice every day to become the best one. That's all. Find your way, your style, your approach and become a master of it.
I fully agree with you ryuryu. If you want to be a professional, you have to do what´s needed to: learn, practice and keep training/practicing to become better everytime!
Regards from SGP
  • #31
  • Jul 10, 2021 9:24am Jul 10, 2021 9:24am
Interesting thread and some great posts.

The most common adage would be "reinventing the wheel".

You cannot reinvent something, unless you have an original model to tweak in order to "reinvent" it. We are talking about trading as an object, unlike the wheel, it is not a physical thing. It is a series of actions taken based on a set of evaluations. So our conclusions of reinventing, would be illogical and would fall into the category of philosophy.

In trading there is nothing to "reinvent". You enter the market (buy or sell), exit the market, with or without a profit.

As far as the methodology of evaluating an instrument by technical analysis, It is conceivable that someone could come up with something new. But it would still be built on the framework of the currently available analysis and information. Time, average of time, price, average of price, etc... So, maybe not that new.

Of course every market has it's own benefit. As an example; volume analysis, works better with stocks than forex since it has a central exchange.

What we are really talking about is, what method of extracting pips or points, depending on the market, works best. As it has already been pointed out, it depends on the method and the mind of the trader to figure that out for themselves. Trial and error, self control and discipline are the best instructors.
MY GRID. Markets are NOT random.
  • #32
  • Last Post: Jul 12, 2021 2:45pm Jul 12, 2021 2:45pm
Took me a few years of carefully finding the right wood (hickory), sculpting the wood, discarding every single one I botched, getting back to carving, doing the work needed, and it was aaaa lot! of work. I knew my wheel must be perfectly round and durable. It will go through a lot of terrain !

Then, when good enough in all aspect and round enough to roll about smoothly and carry my old clumsy sore body and imperfect mind, I start working on my second baby, a second wheel (need at least two! A barrel is not enough ) . Then a third, then a fourth ! That is diversification that keeps return/drawdown high enough on the long run. They still need certain similar characteristics to work together, or the whole will crumble !

I fix them instead of replacing them. I test them every time BEFORE every ride.

If I had spent time staring, studying, obsessing over the more shiny wheels around me, my own good old wheels would not have survived as that would be time and energy NOT taken to take care of them enough.

They are putting food on the table, have brought the workers and the house building material, now the cottage on the lake....

I have come to love my wheels and I realize that, even though there are plenty of finer wheels out there, these are the ones for me. They consistently roll nicely, and with the varying loads.
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If I don't mention SL and/or TP = longer-term setup possibly in the works!
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