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Strategies & Market Trends : The Residential Real Estate Crash Index -- Ignore unavailable to you. Want to Upgrade?

To: saveslivesbyday who wrote (115026)	4/5/2008 3:04:53 PM
From: Smiling Bob	Read Replies (2) \| Respond to of 306849

Also, it is highly unlikely the every trading firm uses the same algorithms, though I would imagine they work on the same principles.... --- Except if the majority of volume, or the ones leading/directing, were made up of just a few select traders/firm. Buying begets buying etc. In the fiber optic age, it's nanoseconds. Just like the birds in the rear react with no discernible lag. So if the esteemed Working Group applies their efforts on the buy side, there's possibly a mindless flock reacting invisibly. If that's inadequate, create your own flock. I'm still amazed when I see how fast an online trade executes and bids show up on every screen in the world.

To: saveslivesbyday who wrote (115026)	4/5/2008 3:38:36 PM
From: BWAC	Respond to of 306849

<Also, it is highly unlikely the every trading firm uses the same algorithms, though I would imagine they work on the same principles.> Nah, they are all doing the same thing at the very same moment in time. Coordinated, some in, some out, net the coordinated chosen direction.

To: saveslivesbyday who wrote (115026)	4/5/2008 4:30:40 PM
From: ChanceIs	Respond to of 306849

>>>The programs are set to follow trends, and appear to be most closely linked with direction, change of direction,<<< Just remember.....the presence of a trading program within the system, changes the system itself. Sooner or later the fundamentals rule - harks back to Buffett - short term voting, long term weighing. I do some counter-trend trading when things are severely out of whack. Its easy enough to train a computer to so that. What happens when a computer does that??? You get reversion to the mean. Always reversion to the mean. When I set a trade up, I try to do it around a position where I can garner a nice chunk of option premium should it go against me. If I hop in for an anticipate gain on a long position and it drops, I will sell a call. There is no single correct way to invest in the market. I have a desired account value and I raise that every month if the account appreciates. If I make a day trade when the account is above the desired value, then the profits leave to the cash account and stay there. If the account is below the value, then the trading profits stay in the account. I got clobbered just after March expiry, and again after the Lehman issuance bounce. Right now, I would guess that I won't be moving any trading profits over to the cash account until June.