http://adamhgrimes.com/blog/dark-side-technical-analysis/
What he writes rings 100% true to my experience as well, for me, technical analysis was a phase I went through about 10 years ago, with very little to show for it except robust skepticism and the demand for quantitative proof of edges!
Hello Simon,
very interesting! Strange that you have so few replies (actually there was a second one from Market Meat).
May I ask, with which general strategy you try to get the edges nowadays?
Best Regards
Fabian
I am focusing on providing liquidity during predictable (or at least recognizable) situations where someone, for whatever reason, must trade at any price.
Hello Simon,
as I am still a beginner, could you give some examples of these reasons.
Thanks in advance!
Best Regards
Fabian
Examples might be when they receive a margin call, or when they must rebalance their exposure to some fixed ratio or leverage, or simply when they must get a certain number of shares executed.
Simon,
So how do you find/detect desperate people/institutions? I'm guessing folks don't exactly want to broadcast that they are between a rock and a hard place.
Grant
http://papers.ssrn.com/sol3/papers.cfm?abstract_id=2161057
This is an example of a predictable situation. There are others, like options expiry strike pinning, options' dynamic hedging, leveraged statistical arbitrage unwinds.
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