3 ms·

If a lot of people will start running it, it will lose profitability (assuming it is profitable now). The same software acting on the same set of signals means

by atleta 6y ago

If a lot of people will start running it, it will lose profitability (assuming it is profitable now). The same software acting on the same set of signals means the signals will be cleared pretty quickly.

benibela 6y ago
This guy said TA has no meaning, it only works because other people think it works: https://news.ycombinator.com/item?id=26286655 https://news.ycombinator.com/item?id=26286655 In that sense, the more people would use the software, the more profitable it becomes. The software thinks the price of some stock will increase, so it buys the stock. If more people use the software, more will buy the stock, so the price rise even faster
- atleta 6y ago
  Yep, I almost wanted to add that as well. TA doesn't work and I think this has been (kind of) proven. Though if you look into it just superficially, you'll see that it's a total sham/self deception. However, it does not mean that the system we're talking about would create a positive feedback loop. (And, if it would, that would probably also be bad and just waiting to be exploited by some other players.) Because even if TA is fake, IF their system works they somehow have an algorithm that works that may to some extent be based on some indicators. (BTW, looking at the comment it's not clear that they simply use TA. The guy just said "spent a month researching technical indicators and quantitative analysis,".) The thing is that, based on what they said is that it's some tunable algorithm that tries to extract some information. And even if TA worked (which I don't think it does) acting on those formations would still erase the signal or the usefullness of the signal, because when someone uses TA looking for these random shapes, they still try to predict the future and act ahead of the others.

3 ms·

If a lot of people will start running it, it will lose profitability (assuming it is profitable now). The same software acting on the same set of signals means

by atleta 6y ago

benibela 6y ago
This guy said TA has no meaning, it only works because other people think it works: https://news.ycombinator.com/item?id=26286655 https://news.ycombinator.com/item?id=26286655 In that sense, the more people would use the software, the more profitable it becomes. The software thinks the price of some stock will increase, so it buys the stock. If more people use the software, more will buy the stock, so the price rise even faster
- atleta 6y ago
  Yep, I almost wanted to add that as well. TA doesn't work and I think this has been (kind of) proven. Though if you look into it just superficially, you'll see that it's a total sham/self deception. However, it does not mean that the system we're talking about would create a positive feedback loop. (And, if it would, that would probably also be bad and just waiting to be exploited by some other players.) Because even if TA is fake, IF their system works they somehow have an algorithm that works that may to some extent be based on some indicators. (BTW, looking at the comment it's not clear that they simply use TA. The guy just said "spent a month researching technical indicators and quantitative analysis,".) The thing is that, based on what they said is that it's some tunable algorithm that tries to extract some information. And even if TA worked (which I don't think it does) acting on those formations would still erase the signal or the usefullness of the signal, because when someone uses TA looking for these random shapes, they still try to predict the future and act ahead of the others.