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Quant Corner

  • #1
  • First Post: Edited 3:45am Dec 7, 2010 3:12am | Edited 3:45am
It occured to me that there are two very distinct types of traders that come to this forum: chartists (the artists) and quants (the scientists)

I would guess that over 3/4 of the folks here are chartists... they draw lines on their charts, and through some sort of artistic interpretation of where the price is relative to their lines, they assume the price will hit that line or move away from it.

On the other hand, you have folks like me that think that artistic interpretation is too unreliable, and go for a more numerical approach. We believe that the only true indicator is momentum, and that momentum isn't limited by a projection relative to a line, but rather to it's historical characteristic of price runs in the past.

This can be the use of technical indicators, neural networks that pull data from other sources other than the chart, and fundamental analysis such as COT reports.

I suppose we could even group a third set of traders as strictly news release traders... or folks basing their decisions solely on what they are reading in the newspaper and speculate based on world events ("I bet the Euro will collapse", etc)

If you fall into the second catagory, it would be nice to discuss the factors that you use enter and exit your trades.
  • #2
  • Edited 8:39am Dec 7, 2010 4:39am | Edited 8:39am
Quoting tdion
It occured to me that there are two very distinct types of traders that come to this forum:...
The foundation of science is exploration, experimentation, luck. How was rubber invented? Did it take Edison lots of tries before the light bulb? Scientific observation is only after a place is discovered to do so. Here's another: How fast do the species recorders have to move through the rainforests before they all disappear (from a programmed need to make a living only from one way)?

Chartists are first -- They discover, experiment, and risk. Very little can be programmed, compared to what chartists can do -- The flexibility is too great.
Skill hews and evolves the group.

What runs science is observation and quantification, only as servants to the foundation.
  • #3
  • Dec 7, 2010 1:27pm Dec 7, 2010 1:27pm
Quoting tdion
On the other hand, you have folks like me that think that artistic interpretation is too unreliable, and go for a more numerical approach. We believe that the only true indicator is momentum, and that momentum isn't limited by a projection relative to a line, but rather to it's historical characteristic of price runs in the past.
Do you have an evil twin?
The breaking of a wave cannot explain the whole sea.
  • #4
  • Dec 7, 2010 3:12pm Dec 7, 2010 3:12pm
Quoting tdion
It occured to me that there are two very distinct types of traders that come to this forum:...

I want to add fourth category= chartist + 3rd category....

who trade charts with keeping a eye on news.......

V
  • #5
  • Dec 7, 2010 5:22pm Dec 7, 2010 5:22pm
Craig, if I have to bet on something, it is momentum.... however, that doesn't mean I don't think luck is involved because I still do

Quoting Craig
Do you have an evil twin?
  • #6
  • Dec 7, 2010 6:03pm Dec 7, 2010 6:03pm
Quoting tdion
Craig, if I have to bet on something, it is momentum.... however, that doesn't mean I don't think luck is involved because I still do
No problems, was just being stupid about the me/we duality in your original post
The breaking of a wave cannot explain the whole sea.
  • #7
  • Dec 8, 2010 10:08pm Dec 8, 2010 10:08pm
Any quants here build their model based on chaos theory?
  • #8
  • Dec 9, 2010 5:47pm Dec 9, 2010 5:47pm
What do you mean? And how would you do that?
  • #9
  • Dec 9, 2010 7:52pm Dec 9, 2010 7:52pm
Quoting ForexQuant
Any quants here build their model based on chaos theory?
I'd like to know some that do. I trade fractals as they are natures support and resistance lines. I keep thinking you should be able to quantify certain characteristics of fractals...I just don't know how.
  • #10
  • Dec 9, 2010 8:13pm Dec 9, 2010 8:13pm
Quoting ForexQuant
Any quants here build their model based on chaos theory?
Not a model, but an interesting read none the less.
http://intelligenttradingtech.blogsp...l-markets.html
The breaking of a wave cannot explain the whole sea.
  • #11
  • Dec 9, 2010 9:04pm Dec 9, 2010 9:04pm
Quoting tdion
If you fall into the second catagory, it would be nice to discuss the factors that you use enter and exit your trades.


Is this just a fancy way of asking for someone to teach you how to trade?
  • #12
  • Dec 9, 2010 10:47pm Dec 9, 2010 10:47pm
Quoting tdion
What do you mean? And how would you do that?
I meant a mathematic model based on chaos science, a self-similarity mathematic structure.

This mathematic structure allow me to determine the mispricing element therefore profit from it.

Quoting crghill
I'd like to know some that do. I trade fractals as they are natures support and resistance lines. I keep thinking you should be able to quantify certain characteristics of fractals...I just don't know how.
I think you were referring to BW 'chaos theory'. IMHO his so called chaos trading is completely misleading.

Quoting Craig
Not a model, but an interesting read none the less.
http://intelligenttradingtech.blogsp...l-markets.html
Yes I didnt use time series analysis in my approach. I separated the price and time in my analysis.
  • #13
  • Last Post: Dec 9, 2010 11:15pm Dec 9, 2010 11:15pm
No

Quoting akhtergroup


Is this just a fancy way of asking for someone to teach you how to trade?
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