Tools being used by your trading competition

[tech/a]

Have you noticed the rich fly jets they know they are better and can afford them.

The poor own Cessna's they aren't as good as jets but that's all they can afford.

 

[rb250660]

Didn't Einstein say something like "Everything should be made as simple as possible, but not simpler."

 

[Wysiwyg]

“Would love to see some evidence of the far superior method in action”

I think this question stems from the belief that with all Howard's knowledge and experience he would be in the top 1% of traders and exceptionally wealthy from trading markets.


The markets are driven by human response mechanisms. I doubt that can ever be completely quantified.

 

[Newt]

That's what I love about Peter2's threads. Real time, logical, hard slog to give positive expectancy. I suspect a lot of people would be happy to start (learning to trade) knowing profitability is possible, rather than the Lear Jet. Nothing wrong with dreaming - it just doesn't seem pay well in the markets - sigh.

 

[Newt]

Quoting Dr Howard Bandy

Having a keen interest in the subject matter I would like to play the Devil's Advocate.

tech/a makes a disconnect between a data analysis and the end user of the data whereas Dr Howard Bandy has no disconnect, he is a "Data Analyst" and a "Trader" being in a unique position working both sides of the fence adding more weight to ThingyMajiggy reasonable request “to see some evidence of the far superior method in action”

I would like to hear from Dr Howard Bandy in regards to the comments made by Dr Tomasz Janeczko “In my opinion throwing more languages (like Python) into the mix just makes things harder, not easier, and is not really necessary as everything is doable within AmiBroker itself”

Dr Howard Bandy uses languages like Python, ML and AI while at the same time having a deep understanding of Amibroker Formula Language and as fence sitter I’m not fully convinced that either software has an advantage over the other but if there is I would like to see evidence.

My DISCLAIMER

I respect Dr Howard Bandy and Dr Tomasz Janeczko holding them both in high regards.

Devil's advocate is good. Would it be pushing this too far to compare expensive tools versus knowledgeable tradesperson? A great craftsman with cheap tools will probably beat the newbie starting with all the expensive toys everytime? I think the original thread premise was that we're often up against master craftsman, who also have great tools? (was that too many questions in a row??)

Respect for Tomasz J 2nd'ed. Amibroker is an amazing software tool.

 

[Wysiwyg]

Devil's advocate is good. Would it be pushing this too far to compare expensive tools versus knowledgeable tradesperson?

That is right. Where do I start would be one question. Next stage is on the treadmill for countless hours, days, weeks before coming full circle. I do believe there is value in knowing information not broadly known and that is where there is an edge.

 

[CanOz]

Have you noticed the rich fly jets they know they are better and can afford them.

The poor own Cessna's they aren't as good as jets but that's all they can afford.

Not the most relevant analogy....python is free, amibroker is at least $250.00 US

 

[skc]

A propeller is enough to fly a plane
A jet engine is better.

I also agree that a jet engine is more powerful than a propeller.

But here's where the analogy fails, and reflecting what ThingyMajiggy has asked... what's the evidence?

Evidence has shown that a jet engine will move an aircraft faster than a propeller... and faster = better. Is there equivalent evidence that shows more powerful programming and analysis languages = better profits.

How does anyone show or prove that? I have no idea.

Having said that, I also believe that my pocket calculator improves my trading. If I don't have a calculator I wouldn't be able to do some of the quick sums through the trading day (or do them slowly and with more mistakes), I may take less trades, or wrong trades, or have less conviction on the right trades because I couldn't do the calculations fast enough. So a calculator = better profits for me. But I am not sure if I have a calculator 5000x faster would make any further difference. I also know profitable traders who don't even own a calculator.

A calculator vs manual calculation isn't the same as Python vs Amibroker which isn't the same as advanced big data quant vs others. So no analogy is perfect. I am not taking sides on the debate... I wish someone can make a winning argument.

P.S. ThingyMajiggy account is disabled?

 

[tech/a]

I think the original post was pointing out what retail traders are now up against.
10 yrs ago the competition in the market was less.
Now it's more
In 10 yrs time it will be even more.

Will I turn from Duck to Dinasour if I don't come up to a level that is competitive?

Without long trends it's far more difficult to profit.
10 yrs ago the taxi driver was making a profit in the market.

Choppy markets are very difficult to etch out $$s

Frankly I don't know how fundies make a buck today and I've not seen any evidence on this forum that any one of the many here ----are.
Trading short term choppy markets over a long period (years) with long term fundamental analysis doesn't equate to me.

Not saying technical analysis in un trained hands is any better.
But it is much more reactive in choppy markets.
There is no doubt that there are more tools and increasingly more
Powerful tools available to the technical trader.

 

[Trembling Hand]

Not saying technical analysis in un trained hands is any better.
But it is much more reactive in choppy markets.
There is no doubt that there are more tools and increasingly more
Powerful tools available to the technical trader.

Really? Tech those very same powerful tools you think you are talking about are doing the same for quantitative fundamental approaches. Exactly the same.

 

[tech/a]

Yeh I know
But not by the Fundies on this forum
I doubt they are interested in implementing.

Those that I know of are looking for extremities in fundamentals
Setting up to take advantage of.

A combination of both would be interesting particularly in indexes,
Currencies and commodities.

 

[skc]

I don't think that is possible with human nature. Most enter the market because they think they are better than the average. The group who enter the market with an already "defeated" attitude/believe and are willing to take index market average return minus fees will always be the minority.

sorry Minwa. I forgot to link further discussion on this topic is here https://www.aussiestockforums.com/threads/a-long-bet.33273/#post-951785

 

[tech/a]

Have you noticed Howard's absence?

 

[Wysiwyg]

Any tools being used by the trading competition besides a programming language?

 

[Wysiwyg]

Hedge funds have long relied on computers to help make trades. According to market research firm Preqin, some 1,360 hedge funds make a majority of their trades with help from computer models—roughly 9 percent of all funds—and they manage about $197 billion in total. But this typically involves data scientists—or "quants," in Wall Street lingo—using machines to build large statistical models. These models are complex, but they're also somewhat static. As the market changes, they may not work as well as they worked in the past. And according to Preqin's research, the typical systematic fund doesn't always perform as well as funds operated by human managers (see chart below)

 

[Wysiwyg]

Information (and speed of) is the obvious key. Accessing and processing that informatiopn does require some computer skills. For example the list of shorted stocks from ASIC website would be handy automatic information when testing strategies. E.g. if > 10% short sold, then don't buy. E.g. seasonal affects on stocks, news articles, broker reports are information that delivered quickly or 'read' for significance would be an advantage.

 

[minwa]

Have you noticed Howard's absence?

Howards absence is voluntary. He was online today and his account still works.

Thingy's account is disabled. Click on it and it says disabled.

There be more to the story than just here. But if that resulted from just this exchange here then I am done here.

 

[tech/a]

Howards absence is voluntary

I totally understand his non participation.
What I cant understand is that proof of trading prowess
evidently will enhance the credibility of a Maths Professor
who is talking on his topic of expertise.

Its like listening to a researcher who is looking for
a cure to cancer but rejecting their credibility because
they don't have evidence of curing it!

 

[minwa]

I totally understand his non participation.
What I cant understand is that proof of trading prowess
evidently will enhance the credibility of a Maths Professor
who is talking on his topic of expertise.

Its like listening to a researcher who is looking for
a cure to cancer but rejecting their credibility because
they don't have evidence of curing it!

Never knew being a maths proffessor automatically makes you profitable in trading. We are talking about making money in trading here arnt we ?

 

[tech/a]

Oh I see!

Doesn't make you a Doctor/Engineer or Astronaut.

You are really missing the whole point of this thread.