Any good reads?

snapdragon1970 posted:
The creature from Jekyll Island.

Already mentioned , but a great read. In my economic days I was studying Ron Paul and Ludwig Von Mises ( mises.org ) and getting a understanding of central banking and the stranglehold that is associated with it, the creature from Jekyll Island was one of the first books I read on the subject.

can you recommend any trading books?

I should have checked first, what kind of trading are you doing Forex or stocks?

just forex for now.
I am most interested in automated trading based on technical analysis , but any info is good :)

Well think about it, no book is going to really help you to trade forex, follow someone live trading, even follow someone on demo to see what they are doing, automated trading on technical you need at least L2 and DMA or lots of experience, End to the bull is a good read about technical. I wouldn't advise automated trading on tech though, the results are hit and miss, but everyone has to find out for themselves what way they want to trade.

That seems counter-intuitive, if you don't advice automated trading on Technical, what would you automate trading on exactly?
 

Have you got L2 and DMA otherwise nothing because it doesn't work without

by L2, do you mean Level 2? There is only market depth in forex, there is no forcible regulation for a level 2 type system as not all forex brokers are DMA.

Yes, my broker is a DMA broker.

Can you answer my question though? If you are advising against automated trading on technical, what would you automate trading on exactly ?

Yes level 2, no there is depth in other securities as well,you need to see the volume and buyers and sellers then you check that with say a resistance level, that's why you see technical fail without those measures, the only place to automate is HFT or Institutional trading of book orders in stacks.

Trading in the zone

Hello,
There are many books for trading and I am sure what is written there cannot be applicable on 100%, just everyone have to extract what seems to be important for him.
Me personally like very much:
* Tools and Tactics for the Master Day Trader: Battle-Tested Techniques for Day, Swing, and Position Traders - some good strategies for day trading on stocks ( by Oliver Velez and Greg Capra)
* The Complete Day Trader (by Jake Bernstein )
* Some interesting articles in Stocks and Commodities magazine and etc.

snapdragon1970 posted:
Yes level 2, no there is depth in other securities as well,you need to see the volume and buyers and sellers then you check that with say a resistance level, that's why you see technical fail without those measures, the only place to automate is HFT or Institutional trading of book orders in stacks.

Right, essentially you are saying that price action and volume are the largest indications in your trading decisions, and I totally get that on a manual level. I totally understand how level 2 works and when I first started paper trading three years ago, I was doing stocks and indices, instruments that had level 2.

I get what you are saying, this is a social site for forex traders, so I am wondering, other than using tools like Outlook here on myfxbook and checking the books on brokerage sites ( like oanda , the broker i use ), would there be any other way to get that info to robot, like via an api?

Are you suggesting that going with the crowd is more sound than against? I have always found that when the books show a real heavy buy or sell crowd, that the opposite is always more profitable in the long run than going with the crowd.

Also, isn't support and resistance, along with volume and price action the number one indicator to see the large institutional orders?

The intuitions don't look at support and resistance levels, that's why you see stops being run at a support/resistance level its price and volume game they are interested in, you cant check books unless your on a trading desk, some brokers will share info at a price for large private clients. As a retail trader you can pick off other retail or if you know what to look for you can jump on the intuitional trade, yes by the time you see a large buy order go through, professional traders are looking at selling. There is a lot of useless information sold to retail that's why such a huge fail rate.

I get that, I am trying to understand why you think that automation is completely useless in forex if you can't integrate information you normally can't get anyways? How do you explain those who are successful that run automated systems in forex? Obviously, they are building these systems without this information

A certain percentage will be successful but that's down to pure luck not the system, the profits are so small it has to be done on HFT even then cost factors kill most over a period of time or completely fall off a cliff, Forex isn't designed for retail in a nutshell , you will hear of systems gaining huge % for a few months, you wont hear of the amount of systems that blow up.

I have read and listened to quite the number of interviews of traders who have been running their own automated systems for years with varying success , but not without complete blowouts. I find it hard to believe that it is completely useless to try and program a automated system....

sure, I get I would never hear of all of the failures and blowups, but what about those who have been doing it for years. Ed Sakota? I mean, why or how can I trust what you are saying is true?

just curious really, and thank you for your insights , but keep in mind , I am very skeptical of what you are saying as I have no way of seeing your success as proof. But if what you are saying is true, it would solidify something I have been speculating for the last two years, and that is, a system is only as good as the programmer behind it - you still have to intervene most of the time.

but than again, what about ed saykota? Can the automation done in instruments with level 2 be THAT different than forex?

Some of the most expensive automated systems I know of can't run without manual intervention because of the human element in trading .I to know traders who were successful running automated systems for awhile,some are still friends,you will hear about their success when they are successful at that point in time, it's almost impossible in an institutional setting ,so what odds do you think a retail trader has no matter what his IQ is,it was brought to retail to generate sales nothing else ,the black box systems .I have no reason to talk bs the facts are out there if you look.ed saykota is one of those exceptions I was talking about earlier.I recently was talking with a guy ex Goldman sacks running his own funds 64% success rate 0% automated, he was saying HFT is a race to the bottom while he was still at GS,food for thought,hope it helps.

I am also a big believer that the human factor is at first place in trading, even if EAs are used. I think the manual intervention you refer to in the auto systems is to update them regularly according to the new market reality. This is super important.

Newcomers first of all have to observe some mandatory things if they want to lead a secure and comfortable trading life with certainly. Only good trading knowledge cannot bring success in this volatile trading place. Besides good trading knowledge we the traders have to make sure a reliable support from a credible trading broker, because the broker can affects the result of our trading with certainly.

Mohammadi posted:
Newcomers first of all have to observe some mandatory things if they want to lead a secure and comfortable trading life with certainly. Only good trading knowledge cannot bring success in this volatile trading place. Besides good trading knowledge we the traders have to make sure a reliable support from a credible trading broker, because the broker can affects the result of our trading with certainly.

All Traders of New have to first become smart and than relearn how to learn how to be calm in the face of uncertainty. Than and only than may they than open a broker account, but only a good broker account, to be certain of certain certanly circumstances :)