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Direct MessagesDate/Time: Fri, 19 Apr 2024 00:50:18 +0000
Post From: Trade Intensity/Pace of Tape indicator for SierraChart?
| [2013-04-15 13:08:54] |
| joshtrader - Posts: 438 |
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and the screenshots provided there should be enough to "falsify" the hypothesis that this technique in isolation is of any assistance whatsoever in picking reversals.
If this study alone did provide an edge
Maybe some will want to use this in isolation, but nothing in isolation that is systematic in nature will work, because it will quickly be taken advantage of, as you say. But I certainly didn't propose using it in isolation. they want this indicator not because they can prove it to work but because it somehow 'supports' or 'gives confluence to' their other (untested, unproven) entry criteria.
Yes, absolutely. "Entry criteria" is very interesting because some who are very systematic in nature (who don't really trade, but who do math instead) need fixed entry criteria. Others can look at a DOM and trade effectively this way, and use context and other "unprovable" criteria (in the sense that it is not mathematically quantifiable, it cannot be programmed and cannot be tested or proved in the general sense). The indicator proposed here may provide a visual help for some who trade this way, as one possibility. surely how the exchange matches and reports trade volumes is going to be a significant input in deciding which instruments this study will be of any use on.
Of course, which is why a tick chart is far inferior in this case to a volume chart, which does not take into account orders but volume only, so that changes such as the one you mentioned, which affected quite a few people, would not affect someone who does not care about what a "trade" is but rather about traded volume. I do not use this "pace of tape" indicator, and in fact all one needs to really see this is to put up a small time-based chart with a volume histogram, or program (as I did) a simple indicator to be used on a volume chart that shows the same thing. Is the OP and others who use the strategy aware of these concepts and how it would affect their results? There is no easy money in this business, and if there is you're getting paid short odds.
I would hope the OP is aware -- most traders know about the CME changes you referenced, and it's not rocket science. Absolutely there is no easy money, in the sense that profitable "dumb" strategies which do not rely on unique human expression of thought and which are quantifiable in nature are few and far between, and don't work for long without being modified. In contrast, using logic, intuition, and simple tools can often be quite rewarding. Date Time Of Last Edit: 2013-04-15 13:09:45
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