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      (Original post by Ironuts)
      The evidence suggests that even after transaction costs, moving average and filter rules do outperform a buy and hold strategy in some emerging markets... at least that's the case for now. It's not debatable.
      And which glorious form of technical analysis is this? The one where you turn charts upside down and do the same thing? Or the ones where you stretch the chart by changing the scale on the axis and do something different?

      The ultimate justification in the business is making money.
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      (Original post by President_Ben)
      And which glorious form of technical analysis is this? The one where you turn charts upside down and do the same thing? Or the ones where you stretch the chart by changing the scale on the axis and do something different?

      The ultimate justification in the business is making money.
      If you wish to know about the idiosyncrasies of the trading rules used in these studies, I suggest you actually read them. There are a few different studies that confirm each other, but I think the studies by Fifield et al are regarded as being some of the most significant.

      As stated previously, it was never suggested that TA should be employed to make money. It was a passing comment on a tangent to the discussion that didn't warrant a condescending response. Incidentally, I have no time for TA... I'm not a fool despite what you might think.
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      I could make a study to make any TA seem profitable
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      (Original post by acies)
      I could make a study to make any TA seem profitable
      That was Ben's point.
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      I think that any form of technical analysis used on its own is doomed to failure. Assuming no transaction costs, there may be alpha in it however when these are factored in the edge is not great enough to overcome the spread ect.

      However, from seeing a significant amount of the flow of renassiance, in FX, I do believe there is alpha be combining a range of technical indicators together. I do believe that in a tight spread enviroment like G10 Spot FX, that using 3 or 4 complementary indicators together can produce some valuable knowledge.

      My hypothesis from looking at the flow together is the key is come you come up with the approach of combining the technical analysis instruments, rather than pure data mining.
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      (Original post by DEVY2007)
      I think that any form of technical analysis used on its own is doomed to failure. Assuming no transaction costs, there may be alpha in it however when these are factored in the edge is not great enough to overcome the spread ect.

      However, from seeing a significant amount of the flow of renassiance, in FX, I do believe there is alpha be combining a range of technical indicators together. I do believe that in a tight spread enviroment like G10 Spot FX, that using 3 or 4 complementary indicators together can produce some valuable knowledge.

      My hypothesis from looking at the flow together is the key is come you come up with the approach of combining the technical analysis instruments, rather than pure data mining.
      TA, if anything, is for confirming/cleansing trade ideas. Not for formulating them. The point I was making was purely academic.
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      (Original post by Zweihander)
      2 questions:

      1) Generally speaking, how big are the derivatives trading desks, relative to the equities and fixed income trading desks, in terms of number of traders?

      2) What technical knowledge do you need if going for a grad role in equities trading?
      1) Depends on the bank I guess. Some have more deriv traders, some more cash.

      2) If by equities trading you mean straight cash equities, I wouldn't say you need that much in the way of technical knowledge. More important would be to have a view on different sectors, various individual stocks, and be able to talk about them. I would say that a good way to impress would be to come up with a stock pick in the interview, and explain your reasoning for it (this information can easily be gotten from research docs).
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      (Original post by Zweihander)
      2 questions:

      1) Generally speaking, how big are the derivatives trading desks, relative to the equities and fixed income trading desks, in terms of number of traders?

      2) What technical knowledge do you need if going for a grad role in equities trading?
      Correct me if i am wrong but derivatives isn't a class of its own like FICC and Equities and is a product of both.
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      In equities trading, you just need luck... Seriously these guys say they are "traders" but it's really based on lucky shots. During my internships, I was with an equities trader, he used to tell me: "oh ****, Citi is going through a huge writedowns, let me short some shares so I can fund my long position in Apple because I feel some clients will need some more of this ****"...

      So for some people, it's called an "analysis of the technology sector" but for me it's just about feelings... Either you're right and you can shout to the entire world that you're a genius... or you're wrong and you say "bad luck".
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      (Original post by DarkSwan)
      In equities trading, you just need luck... Seriously these guys say they are "traders" but it's really based on lucky shots. During my internships, I was with an equities trader, he used to tell me: "oh ****, Citi is going through a huge writedowns, let me short some shares so I can fund my long position in Apple because I feel some clients will need some more of this ****"...

      So for some people, it's called an "analysis of the technology sector" but for me it's just about feelings... Either you're right and you can shout to the entire world that you're a genius... or you're wrong and you say "bad luck".
      http://www.youtube.com/watch?v=7zxpC...eature=related
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      lolz brown bear is a tard. The gambler joke is getting a lil tired though. What he should really be *****ing about is all the traders using derivatives to create abnormal demand in the markets and totally skewering commodity prices. So while Lloyd Blankfein sits in his New York penthouse eating caviar and drinking champagne, Suresh, a lowly carpenter from Mumbai, can no longer afford to buy the wheat to feed his family.
     
     
     
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