Quite so....the article also reminds me of Mr Harris' work: http://www.priceactionlab.com/Blog/the-book/Reading for the rest of us:
I read that article when it first came out and thought it was very good. I especially liked this part:Reading for the rest of us:
True, and Davey's "profitable" methods (which I'm sure did well in backtesting) haven't been profitable in real-time, at least those I've seen. Someone in a Market Wizards book said something similar to Davey--I believe it was "There are a million profitable ways to trade, and all of them are extremely difficult to discover." If anything, it's much harder to find profitable trading methods now than in the Market Wizards era (1970s-1980s). If you had a strong math/IT background or were willing to calculate indicators by hand, things like the Turtle trading method worked well back then. Now every retail trader has access to much more data/systems, and hedge funds, serious algo traders and HFT guys are on a completely different level altogether.I have not read Michael Harris' "book" but Kevin Davey wrote about the possibility of finding one profitable technical trading system for every 100-200 that I may attempt to develop. I view this as the TA challenge. Useful methods may be out there but it's really difficult (and beyond the capabilities of most of us due to inadequate statistical and/or coding knowledge) to find them. In the meantime, so many retail traders willy-nilly (not to be confused with "dilly dilly") click on this or that indicator and believe we are looking at actionable information. Some of this may have been actionable in the recent past and may continue to be actionable for a time until the luck runs out.
Great article! I always thought it was funny to watch traders argue about trendlines in forums. "Your trendline strategy didn't work because you should connect 3 low points, not 2," etc. It's kind of like Elliot Wave "analysis." Ask five Elliot Wave followers which wave the market is currently in, and you'll get 5 different answersA good discussion...the "always grumpy" [IMG alt=""]https://forums.capitaldiscussions.com/styles/default/xenforo/clear.png[/IMG] Michael Harris put another blog post up on this theme (focusing on trend-lines this time) a few days ago:
View attachment 2539