Just got off YouTube and wanted to vent… Quants scoff at technical analysis while building models that rely almost entirely on mean reversion — which is literally one of the oldest, most rudimentary forms of TA lol. So I guess it's right quants don't use technical analysis... they are a rudimentary form of it.
A lot of TA and Chart reading is very subjective. In my algo trading I have well defined exact and objective rules for trading price action using my custom indicators.
They are net profitable and have been decades, I have been trading them profitably since 2005 although some years are much more profitable than others. Could my methods stop working as well in the future, sure, there no guarantees in this business.
Essentially what your algos are doing is the equivalent of saying rain is caused by an itchy elbow. (I know I've used that before.) Sure it may indeed rain...but it's caused by a complex weather pattern.
Who cares what the underlying reason is for making trading profits as long as you make them. I trade to make money, not to figure out the reason behind every move.
It's not about figuring out the reason behind every move, it's knowing that it's going to rain 3 weeks long before your elbow starts itching...
Post a trade in r/t with your TA. One time. Not hindsight BS. You're on here at 6AM EDT to midnight and have yet to post a trade in r/t.
TA is like horoscopes for men. Literally. Quants rely on mean reversion because it is the most common profitable technique. Especially in markets like NQ futures. There are trends sometimes, i.e, when cheetos-makeup man fuck up something. Most of the time, people are looking for mean-reverting waves. Surely there is a trend in the long run, but quants look for the quick win, so mean-reverting shops are very common.
Everything I post is a projection!!!??? I literally called Bitcoin 6 months to the day to hit 70k... When @johnarb was buzzing about his MSTR calls at 100k. Check out my new MARA topic ... I have a current trade with all of my reasoning behind it. I didn't post any charts because none of you understand them anyway. You'll see that I accurately called the MARA earnings simply by analyzing what the chart was projecting. https://www.elitetrader.com/et/threads/mara.385740/page-2#post-6162484