Bawls to the walls Daytrader

[cjvon]

Has anyone watched the trading videos from Xtremetrader? The guy trades 100 to 200 contracts on one trade, it's crazy to watch his P&L fluctuate thousands of dollars every few seconds.


Here's one video that he makes 10K in minutes. Excuse the cheesy music:

http://www.youtube.com/watch?v...wy5l4k&feature=channel

In the above video he is trading 100 contracts, what is the full value of 100 S&P contracts?

 

[joesmoke]

the place i work at has about 20k contracts... which obviously makes me EXTREMELY cool 😎

 

[newb111]

Well I'm a contract killer, so I win.

 

[halik]

Absolute bullshit, no one (with the exception of genetic algos) has been able to prove that technical analysis produces statistically significant alpha. The guy made money with luck and leverage, especially if all he does is watch for 'supports' and 'resistance'

 

[CrazyLazy]

Wow! A youtube video of a graph going up and down! I'm gonna show this to my aunt so she can email to all her friends!

 

[Crusty]

Heh, I have programs that open/close $20-30m usd in equity positions throughout the day. That's hardly 'extreme' trading 😛

 

[KMFJD]

Text

 

[JMapleton]

Originally posted by: halik
Absolute bullshit, no one (with the exception of genetic algos) has been able to prove that technical analysis produces statistically significant alpha. The guy made money with luck and leverage, especially if all he does is watch for 'supports' and 'resistance'

Then why so many people who have made so much money use it?

 

[cKGunslinger]

I have no idea what that was. 🙁

 

[finite automaton]

Originally posted by: cKGunslinger
I have no idea what that was. 🙁

 

[AMDZen]

Originally posted by: finite automaton

Originally posted by: cKGunslinger
I have no idea what that was. 🙁

 

[aldamon]

Originally posted by: JMapleton

Originally posted by: halik
Absolute bullshit, no one (with the exception of genetic algos) has been able to prove that technical analysis produces statistically significant alpha. The guy made money with luck and leverage, especially if all he does is watch for 'supports' and 'resistance'

Then why so many people who have made so much money use it?

Then why so many people who have lost so much money use it?

 

[Crusty]

Originally posted by: halik
Absolute bullshit, no one (with the exception of genetic algos) has been able to prove that technical analysis produces statistically significant alpha. The guy made money with luck and leverage, especially if all he does is watch for 'supports' and 'resistance'

There doesn't need to be any proof. If you can sustain an ~ 60% win rate using whatever methodology you want that's money in the bank, that's all the proof needed.

Sure, you might not be able to prove(in math terms) that your analysis works 100% of the time, but money in the bank = win.

 

[her209]

Originally posted by: JMapleton

Originally posted by: halik
Absolute bullshit, no one (with the exception of genetic algos) has been able to prove that technical analysis produces statistically significant alpha. The guy made money with luck and leverage, especially if all he does is watch for 'supports' and 'resistance'

Then why so many people who have made so much money use it?

Because if enough people watch for formation, and sell based on that, then it "works".

 

[halik]

Originally posted by: Crusty

Originally posted by: halik
Absolute bullshit, no one (with the exception of genetic algos) has been able to prove that technical analysis produces statistically significant alpha. The guy made money with luck and leverage, especially if all he does is watch for 'supports' and 'resistance'

There doesn't need to be any proof. If you can sustain an ~ 60% win rate using whatever methodology you want that's money in the bank, that's all the proof needed.

Sure, you might not be able to prove(in math terms) that your analysis works 100% of the time, but money in the bank = win.

If I make 6% daytrading penny stocks compared to 5.5% in a direct savings account, who's got the better return?

Statistically there is absolutely no proof that technical analysis done by people produces risk-adjusted returns. Also there are very very few people that can consistently produce excess returns with any strategy for long periods of time.

Quant hedge funds have masses of PHDs to squeeze out least bit of alpha from their strategies, you really think that watching for supports and resistances is all you need to make money?

 

[halik]

Originally posted by: JMapleton

Originally posted by: halik
Absolute bullshit, no one (with the exception of genetic algos) has been able to prove that technical analysis produces statistically significant alpha. The guy made money with luck and leverage, especially if all he does is watch for 'supports' and 'resistance'

Then why so many people who have made so much money use it?

Your question is wrong to begin with, there are many, many people that use it and by the nature of statistic some of them will make lots of money.

Look if I take 100 people and have all of them roll a 6sided die 100 times, the winners will have long periods of hitting 6s in row. The fact that they did manage to roll continues 6s isn't a testament to their skill, but a testament to the fact that they were the luckiest of all the people playing.