Random Line Theory - Traders Hideout | futures io social day trading
futures io futures trading


Random Line Theory
Updated: Views / Replies:71,674 / 358
Created: by Big Mike Attachments:100

Welcome to futures io.

(If you already have an account, login at the top of the page)

futures io is the largest futures trading community on the planet, with over 90,000 members. At futures io, our goal has always been and always will be to create a friendly, positive, forward-thinking community where members can openly share and discuss everything the world of trading has to offer. The community is one of the friendliest you will find on any subject, with members going out of their way to help others. Some of the primary differences between futures io and other trading sites revolve around the standards of our community. Those standards include a code of conduct for our members, as well as extremely high standards that govern which partners we do business with, and which products or services we recommend to our members.

At futures io, our focus is on quality education. No hype, gimmicks, or secret sauce. The truth is: trading is hard. To succeed, you need to surround yourself with the right support system, educational content, and trading mentors – all of which you can find on futures io, utilizing our social trading environment.

With futures io, you can find honest trading reviews on brokers, trading rooms, indicator packages, trading strategies, and much more. Our trading review process is highly moderated to ensure that only genuine users are allowed, so you don’t need to worry about fake reviews.

We are fundamentally different than most other trading sites:
  • We are here to help. Just let us know what you need.
  • We work extremely hard to keep things positive in our community.
  • We do not tolerate rude behavior, trolling, or vendors advertising in posts.
  • We firmly believe in and encourage sharing. The holy grail is within you, we can help you find it.
  • We expect our members to participate and become a part of the community. Help yourself by helping others.

You'll need to register in order to view the content of the threads and start contributing to our community.  It's free and simple.

-- Big Mike, Site Administrator

Reply
 100  
 
Thread Tools Search this Thread
 

Random Line Theory

  #231 (permalink)
Trading for Fun
Singapore, Jurong West
 
Futures Experience: Master
Platform: Metatrader
Broker/Data: OANDA
Favorite Futures: Currency
 
Nasdin94's Avatar
 
Posts: 128 since Oct 2011
Thanks: 11 given, 106 received

Hmm.. interesting, if the market seems to react to any random lines..

That means that the market reacts to everywhere and that any line will work as long as time is given to it, then the market will react to it someday.

I think I can imagine it very well, place a random line on a chart, the market will react to it even whether it has significance or without significance to the price, all it takes is time, it can be a few years, day, hours or just minutes and you'll see the market "bouncing" or reacting to one of those lines.

I also understood that It's just your mind thinking it that way, when you're looking at a chart, you should not try looking for something or forcing yourself to find a signal because then, you'll just be seeing things that arent even there.

Much like religion.

Reply With Quote
The following user says Thank You to Nasdin94 for this post:
 
  #232 (permalink)
Elite Member
oslo norway
 
Futures Experience: None
Platform: NT7
Favorite Futures: ES
 
Posts: 1 since Sep 2011
Thanks: 0 given, 0 received


Big Mike View Post
An hour in, and look how price has "bounced" off or is "respecting" one of the lines.

Within 2 ticks...

Mike

I'm not sure how you picked these random lines, but they look like ordinary S/R lines to me.
Did you just randomize based on previous day's range, or what exact procedure produced this randomness?

How do these lines corellate with volume spikes and low-volume zones, or even auto-SR lines from indicators?

Of course, random walk can produce anything, just like FFT can approximate any signal given the right curve-fitted parameters. It doesn't prove or disprove anything. Certainly the predictability is limited.

I do agree that pivot- & fiblines should be used with caution. They can be traps in order to run for our stops. You never know wether price will reach- or turn before, make a break for it, or if the market'll make chop suey . Better find ways to follow price action more directly. Trying to predict price is futile compared to what can be read from price and volume.

Update: Sorry, didn't see the rest of the discussion before I replied. Much of this has already been covered.

However, maybe random lines on a chart is a good strategy with the proper money management? We all see it makes it easier to spot price action, so why not use it? (playing devil's advocate here Of course, the real "indicator" should the be price action, and with practice, you could probably do without the lines.

This could even be made into a "methodology" to learn price action! Just make random lines before every open. Try to trade these during the day, protecting yourself against wrong price action dilligently. Since you know the lines are random, ie. useless restrictions, eventually you should be able to just drop them.

Interesting thread..


Last edited by steeltoe; November 4th, 2011 at 11:29 PM.
Reply With Quote
 
  #233 (permalink)
Elite Member
Berlin, Europe
 
Futures Experience: Advanced
Platform: NinjaTrader, MultiCharts
Broker/Data: Interactive Brokers
Favorite Futures: Keyboard
 
Fat Tails's Avatar
 
Posts: 9,653 since Mar 2010
Thanks: 4,226 given, 25,602 received
Forum Reputation: Legendary


An example of Rubin's Vase.

Our brain, which is specializing on pattern recognition may discover things that do not exist.


Please register on futures.io to view futures trading content such as post attachment(s), image(s), and screenshot(s).

Reply With Quote
The following 3 users say Thank You to Fat Tails for this post:
 
  #234 (permalink)
Elite Member
Philly, Pa
 
Futures Experience: Master
Platform: NinjaTrader
Favorite Futures: ES, ZB
 
tigertrader's Avatar
 
Posts: 5,948 since Jul 2010
Thanks: 6,314 given, 31,870 received


The “market” is a perfect example of an objective meaning-complex about subjective meaning-complexes. In other words, trades don’t make themselves, individual traders make them. It is the actors’ individual subjective values and choices in aggregate, that make a market. This “ universal entity” has to be personified and quantified, if it is to be understood. It’s instinctual for the human mind to find order in chaos and randomness. It’s an innate defense mechanism that will even allow us to deceive ourselves, (cognitive rationalization and confirmation bias). It’s very natural then that we assign significance to abstract patterns and formations, curve fit systems, and perceive what is non-linear and non-stationary, to be linear and stationary. The less diverse the participants, the greater the chance they will make decisions based on the observation of others, independent of their own, and the more fulfilling the prophecy will become.

Reply With Quote
The following 5 users say Thank You to tigertrader for this post:
 
  #235 (permalink)
Elite Member
Columbus
 
Futures Experience: Beginner
Platform: Metatrader
Favorite Futures: Forex
 
Posts: 574 since Apr 2011
Thanks: 95 given, 220 received

Has anyone ever tried trading on random lines? I don't mean something to actually use in production, but more for a training exercise in money management. Using a baseball reference, when I practiced fielding ground balls, I often strapped a small wood board to my hand instead of a glove. I figured if I could field ground balls with that, using a glove would be a piece of cake.

Same goes for practicing money management. If you could break even or even turn a small profit trading off random lines, it'd be a fantastic exercise for trading with a real strategy.

Reply With Quote
 
  #236 (permalink)
Site Administrator
Manta, Ecuador
 
Futures Experience: Advanced
Platform: My own custom solution
Favorite Futures: E-mini ES S&P 500
 
Big Mike's Avatar
 
Posts: 46,240 since Jun 2009
Thanks: 29,357 given, 83,237 received


ryanmnly View Post
Has anyone ever tried trading on random lines? I don't mean something to actually use in production, but more for a training exercise in money management.

Look here:

https://futures.io/elite-automated-ninjatrader-trading/2649-erratic-method-random-entries.html

Mike

Due to time constraints, please do not PM me if your question can be resolved or answered on the forum.

Need help?
1) Stop changing things. No new indicators, charts, or methods. Be consistent with what is in front of you first.
2) Start a journal and post to it daily with the trades you made to show your strengths and weaknesses.
3) Set goals for yourself to reach daily. Make them about how you trade, not how much money you make.
4) Accept responsibility for your actions. Stop looking elsewhere to explain away poor performance.
5) Where to start as a trader? Watch this webinar and read this thread for hundreds of questions and answers.
6)
Help using the forum? Watch this video to learn general tips on using the site.

If you want
to support our community, become an Elite Member.

Reply With Quote
 
  #237 (permalink)
Elite Member
Columbus
 
Futures Experience: Beginner
Platform: Metatrader
Favorite Futures: Forex
 
Posts: 574 since Apr 2011
Thanks: 95 given, 220 received

Wow, you've thought of everything

Reply With Quote
 
  #238 (permalink)
Trading for Fun
GrandRapids, Michigan
 
Futures Experience: Intermediate
Platform: NinjaTrader
Favorite Futures: Futures
 
Billbb's Avatar
 
Posts: 152 since Mar 2011
Thanks: 220 given, 72 received

Conclusion not to use any indicators, too

Ive used hundreds of indicators...then locked in on wcci for awhile, realized that was just price action anyways...

Now I have no indicators...heres my 3 chart set up...

200sma
12ema
price line

At open I tag price w/ a "horizontal line" Wait 5 minutes after open...

If price is below my 200ma and below the open then the trend's down...I trigger in as soon as price line crosses my 12ema ( and ofcourse the 12 is below the 200)

Plus I count the waves 5-3 and count the fractals...this skill set is work in progress that is.

Reply With Quote
The following 3 users say Thank You to Billbb for this post:
 
  #239 (permalink)
Curtis
Hershey PA
 
Futures Experience: Intermediate
Platform: E signal
Broker/Data: AMP CQG
Favorite Futures: YM
 
CRM5096's Avatar
 
Posts: 116 since Jun 2011
Thanks: 55 given, 36 received

a study of Allen Andrews here on this website Original Alan H. Andrews Course Material...cleaned up and transcribed.........NQoos-TradingNaked
if i may post.
Notice the Action Reaction Lines there is also rules already outlined.
I also find it interesting that these lines still work after all these years and the same type patterns show up.
I have a chart of daily corn that i layed out according to the rules and it worked
will post chart later tonight

Reply With Quote
The following user says Thank You to CRM5096 for this post:
 
  #240 (permalink)
Elite Member
Quebec
 
Futures Experience: Intermediate
Platform: NinjaTrader wt Rancho Dinero's profiling tools
Broker/Data: Stage 5 trading/AMP/CQG
Favorite Futures: ES, NQ, YM
 
trendisyourfriend's Avatar
 
Posts: 3,698 since Oct 2009
Thanks: 3,042 given, 4,498 received


Do you see the dancer turning clockwise or anti-clockwise? clickme

I see her turning clockwise. Only once was i able to make the switch and see her turning anti-clockwise.


Fat Tails View Post
...

Our brain, which is specializing on pattern recognition may discover things that do not exist.


Reply With Quote
The following 2 users say Thank You to trendisyourfriend for this post:

Reply



futures io > > > Random Line Theory

Thread Tools Search this Thread
Search this Thread:

Advanced Search



Upcoming Webinars and Events (4:30PM ET unless noted)

Jigsaw Trading: TBA

Elite only

FuturesTrader71: TBA

Elite only

NinjaTrader: TBA

Jan 18

RandBots: TBA

Jan 23

GFF Brokers & CME Group: Futures & Bitcoin

Elite only

Adam Grimes: TBA

Elite only

Ran Aroussi: TBA

Elite only
     

Similar Threads
Thread Thread Starter Forum Replies Last Post
How advanced mathematics and gaming theory can help you as a trader RM99 Psychology and Money Management 203 February 5th, 2016 03:10 AM
Using Dow Theory indicator as a filter in automated strategies nanobiotech NinjaTrader Programming 8 March 28th, 2015 07:56 PM
Economic Theory PandaWarrior Off-Topic 10 May 15th, 2011 12:06 PM
Ryans Chewing Gum theory Ryanb Psychology and Money Management 2 December 8th, 2010 10:25 AM
GAME THEORY tigertrader Off-Topic 3 October 7th, 2010 09:16 PM


All times are GMT -4. The time now is 10:58 AM.

Copyright © 2017 by futures io, s.a., Av Ricardo J. Alfaro, Century Tower, Panama, +507 833-9432, info@futures.io
All information is for educational use only and is not investment advice.
There is a substantial risk of loss in trading commodity futures, stocks, options and foreign exchange products. Past performance is not indicative of future results.
no new posts
Page generated 2017-12-18 in 0.14 seconds with 20 queries on phoenix via your IP 54.226.113.250