Classical thechanalysis doesn't work any more. What works, maybe quantum? - page 7
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You are mistaken, any action that generates a profit is counteracting the movement, you are slowing it down.
You are right, but as a human being you are wrong.
Your reasoning is correct, but as a human. A robot, although created by a man, works differently. Any robot needs an investor, any investor needs stability. As a result, a robot will work on small fluctuations and miss large ones. All the jerks are likely to be picked up by the Central Bank.
I was just asking about the tuning. When there was only lyre, everybody was happy with the Pythagoras system, and then the organ came along and a uniformly tempered system was needed. Maybe the same thing happened to the market?
Very interesting! Here's a new direction of analysis.
Let's assume a fantastic thing: the market is full of robots, and they're so good that it's hard to escape,
What do you think the market will fluctuate?
The answer: Yes, none, because robots will enter the market to make a profit and cancel any fluctuation, and thus the moral conclusion is that more fluctuations mean more and more money is involved in the market, and not managed by efficient robots
(there are two possibilities, either people or sinking robots).
Why do you think it's a sinking robot?
It's not about losing, the point is that robots trade according to completely different strategies, creating unnecessary noise, by the way it's not even about extra funds, the trading volume increases by increasing the number of trades that are now made automatically by robots.
Efficiency is really not improving, liquidity is serving, volatility is increasing.
It's just that time has started to flow faster for the market.
Very interesting! Here comes a new line of analysis.
and why not. After all, music was the starting point of the Pythagorean doctrine of number
Your reasoning is exactly right, but as a human being. A robot, although man-made, works differently. Any robot needs an investor, any investor needs stability. As a result, a robot will work on small fluctuations and miss large ones. All the jerks are likely to be picked up by the Central Bank.
Any robot is written for profit, and profit means slowing fluctuations or in other words reducing supply and demand imbalances. As soon as you open an order you take an action to reduce the supply and demand
(or the opposite of an imbalance but if you increase the imbalance you incur a loss)
only the action to reduce imbalance brings profit.
This means any robot that makes a profit will reduce market fluctuations.
... but if you tell him that you have to wait out a $20000 drawdown to get $500, he's unlikely to understand you.
So you understood me so that my profit/stop ratio = 500/20000 = 1/20 ?
I haven't written such a thing anywhere or seen it in any books.
It's exactly the opposite. I never open a position if the ratio
Profit/stop is worse (less than) 2, more often 3.
Every robot is written to make a profit and profit means slowing down the fluctuations, in other words, satisfying the imbalance between supply and demand. Once you opened an order you took an action to reduce supply and demand
(or the opposite of an imbalance but if you increase the imbalance you incur a loss).
only the imbalance reduction action generates a profit.
So any robot that makes a profit will reduce market fluctuations.
Yes, but you don't take time into account.
Let's assume a fantastic thing: there are only robots in the market, and they are so good that we can't even stop them,
What do you think the market will fluctuate?
I'll answer: No, because the robots will enter the market to take profits and to cancel any fluctuations,
So all the robots are counter-trending?
Why exactly are they leaking?
It's not about losing, it's about robots trading completely different strategies, creating unnecessary noise, by the way it's not even about extra funds, the trading volume is increasing due to the increased number of trades that are now made automatically by robots.
Efficiency is really not improving, liquidity is serving, volatility is increasing.
It's just that time has started to flow faster for the market.
Will you bet on a robot that earned 20k on a demo and lost 19k last month?
You put robots that actually make money on the real. So the volatility is not about robots.
Efficiency is really not improving, liquidity is serving, volatility is rising.
Time is flowing faster and efficiency has not improved.
This is what I am talking about. The speed of price changes is such that you need a lightning-fast reaction at any time of the day or night. Classical analysis is mainly suitable for sluggish trading. Where there are trends and predictability. And it is good to use it to explain price behaviour in the past. I, as an investor, am interested in future profits, not lost profits in the past.