I started my first algo trading course. And gave up after 15 mins

https://learningquant.com/blog/202406/quit-first-algo-trading-course/

by mmarian • 2 years ago

2 13 2 years ago

Technical indicators work because they work.

Really - it works because other traders decided there are price points of significance based on mathematical equations and act on it. Traditional technical analysis could be seen as looking for a set of technical indicators that optimally describe the amalgamation of TA and the capital it controls on the market at the moment.

But nowadays it's very hard to make it work.

mmarian6• 2 years ago

Right, that makes sense from a logical standpoint. Do you know of any empirical research around this? From what I can tell the evidence seems against it, eg see this paper https://link.springer.com/article/10.1007/s11408-023-00433-2

throwAGIway5• 2 years ago

As I said, nowadays it's not working so well. I wouldn't do it - saying this as a former trader that used it successfully (15-20% returns p.a.) for more than a decade, but 20 years ago. Today I don't daytrade at all, just some stock picking based on my knowledge of the tech industry.

streetcat1• 2 years ago

Ofcourse they don't work. If they did work why would anybody tell you about them?. The fact that they use thier time to tell you about them rather than trading and making money means that they do not work.

mmarian6• 2 years ago

I share your skepticism. But I'm trying (forcing) myself to keep an open mind so I don't want to completely dismiss the strategy. I listened on a podcast where a crypto algo trader said he's been using it successfully in his fund: https://bettersystemtrader.com/algorithmic-crypto-trading/

I've also heard on that podcast a good explanation for why traders bother selling courses even if they're good at their jobs. Trading is volatile, so you want to acquire alternative income streams. I think that's a point that any entrepreneur would find reasonable.

keernan• 2 years ago

If technical analysis worked, the conundrum is that revealing the secret would result in the world following the chart, which would have the effect of changing the indicator so it no longer worked.

Presumably anyone who ever found a technical indicator that worked would: 1. Currently be wealthier than Elon Musk; and 2. Never tell anyone the secret.

mmarian6• 2 years ago

Not necessarily. It's well known that strategies only work under certain conditions (scale, market dynamics, etc). And there's a lot of noise these days, so even if you're right it's very hard for people to catch on. I find it similar to other business advice.

I started my first algo trading course. And gave up after 15 mins

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