General Trading Chat

[PS Trader]

WOW...this is big !! RIP Alpari ... whats the fate of other retail clients(who were not part of the losses) ?... We are so blessed to be trading in a regulated exchange.

Folks, please cascade/post this in the respective forex threads in traderji.

http://www.alpari.com/company-news/posts/2015/january/important-announcement/

Don't you see the brokers here offering a lot of NF at just Rs.2000 for intraday????

A bad day will hit them badly and will go bankrupt. I feel pity for the clients (traders) who trades with them and take the full margin.

 

[Smart_trade]

Good Evening Everybody
I have been reading about algo trading...it can be useful in removing emotions from trading.I can understand that no Machine can trade as human..But I would like to know your views about it.
If we want to put a big amount of money for intraday trading, So can we use it.please give your advice & views
Thanks

My take on algo trading is as under :

1) Many think that algo trading is always profitable...it is not so, it can give quick losses too.

2) A complex method is difficult to programme in algo trading. Simple things like ORB,MA crossing etc can be easily programmed but one wonders whether those are profitable.

3) If we can incorporate different actions for trends and different action for sideways markets then algo trading could be great but that putting in algo will be difficult.

4) Algo trading has advantage of executing the trades without any greed or fear.

5) Getting a 100 % mechanical method which has edge in all types of markets is a difficult job.

A trader friend is trying the following as an alternative to automated trading :

1) He has a well defined method with clearly defined stops and profit taking levels.

2) He is experimenting by employing 10th pass girls/boys ( he says preferably physically handicapped) and their job is to execute trades...they are not responsible for the trade outcome but if the trade is missed, they are answerable. Hadicapped because this work does not involve travelling etc and a handicap person can easily do the work.This is a desk job. It provides employment to physically handicapped.He will go only in the evening to see what is todays loss/profit....

This experiment is still at initial stages...I am eager to see what is the outcome of this experiment.

Smart_trade

 

[Smart_trade]

Reliance posts satisfactory results against bad numbers expected. Good for markets on Monday. SGX Nifty 8572 but SGX does not correctly give idea of where the market will open on Monday.

ST

 

[Jai Mata Di]

Algo Vs Our Brain:-

Good Evening Everybody
I have been reading about algo trading...it can be useful in removing emotions from trading.I can understand that no Machine can trade as human..But I would like to know your views about it.
If we want to put a big amount of money for intraday trading, So can we use it.please give your advice & views
Thanks

In my thoughts,

Most of great traders in history (who remained successful till end had mastered in Psychology of Trading, they trained their mind for removing emotions from trading. It is better train our brain than keep that task to algo.

Advantages for Algos:

Algos are mainly essential for institutional/big investors to automatically monitor stop losses(/execute instantly & automatically in various ways(coded in algo) when market crash) for numerous scripts(say 100s of stock with huge volumes in portfolio).
They also reduce impact cost due to huge volume by breaking orders automatically using various algos.
Also, there are very few successful experience pro traders as well as developers who can change their algos according to various market condition.

Disadvantages for Algo for individual traders like us:

1. Just like 'Unplayable deliveries in Cricket' there are dangerous & uncertain times to enter in the market when risk is much more. Experienced traders know when to stay out, using their brains. But algo's can't analyses such dangerous times, algoes will try to play unplayable deliveries too which can cause huge loss in such times.

There are very few experienced traders also who has 70-80% success rate; but they also know the secret, when to stay out (the times when their system don't work ). They also leave Unplayable Deliveries.

2. Algos are not flexible enough to do money management & position size management after risk reward analysis. Experienced traders can easily identify there are some high probability trades, they take huge position sizes. When risk is more they cut down position size as well.

This is one of the most important thing in trading which comes from experience only. Novice traders blindly trade on all signals generated by a technical system and with fixed volume too as they can't analyze risk reward or don't have any idea about money management and position size management.

Hope this helps.

Best Wishes & Happy Trading.
H.C.

 

[LivetoTrade]

My take on algo trading is as under :

Smart_trade

As a first step, one has to 'share' the mechanical system with the authorities, get it 'approved' before he/she can actually use it.

I really wonder how many will be ready to 'share' a profitable, back-tested mechanical trading system !

 

[TradeOptions]

Nifty Option Chain -

Bank Nifty Option Chain -

Advance Decline -

Regards

 

[sudoku1]

Wipro had good Q3 results, Reliance had so so results. Monday may see a small downtick, RIL may be bearish.

stock 2 wch on monday is WIPRO.I doubt if smbody may b able 2 get it fr les den 5% abv 2days eod.

 

[lemondew]

Before 5 pointer I took something else. Then tried intraday stuff. All this is only on a part of the profits I make from my main system. I cdnt understand 5 pointer. I have no qualms I tried 5 pointer. I am happy I did it. The guy who posted 5 pointer took a lot of time to help me install amibroker and thought whatever he understood about his system and technical analysis in conference calls which ran for hours absolutely free. How many in todays world would take time time out to help newbies for free??

Why complain and mock anyone when it is not needed. Ok that might not be full proof system but No one here was forced to take 5 pointer.

There are many things I did in my life which hasnt benefitted me financially

You were one of the avid followers of that 'magical-no-losing-trade-for 6-months' system. Infact, you posted charts to ask q's to the thread owner. Glad that you found something that suits your style. Just was curious on the reason for hopping and hence, the question

 

[timepass]

Don't you see the brokers here offering a lot of NF at just Rs.2000 for intraday????

A bad day will hit them badly and will go bankrupt. I feel pity for the clients (traders) who trades with them and take the full margin.

Who gives NF at Rs. 2000 per lot ?? I don't remember any such advertisements/ posts here in TJ.

Reliance posts satisfactory results against bad numbers expected. Good for markets on Monday. SGX Nifty 8572 but SGX does not correctly give idea of where the market will open on Monday.

ST

Their GRM have come at $7.3, an absolute shocker to the industry.

But who can predict the market ?? The momentum seems strong to spring back from any bad news.

Maybe Kiran Bedi joining BJP will boost up the market

 

[lemondew]

TP,ST

VIX again rose today anticipating some action on monday. Is it to do with reliance, wipro results. Also hul results on monday. Like anant said last day irrespecitve of nifty going up/ down vix went up today.

Who gives NF at Rs. 2000 per lot ?? I don't remember any such advertisements/ posts here in TJ.
Their GRM have come at $7.3, an absolute shocker to the industry.

But who can predict the market ?? The momentum seems strong to spring back from any bad news.

Maybe Kiran Bedi joining BJP will boost up the market