Random Line Theory - futures io
futures io



Random Line Theory


Discussion in Traders Hideout

Updated
      Top Posters
    1. looks_one Big Mike with 58 posts (211 thanks)
    2. looks_two Fat Tails with 41 posts (170 thanks)
    3. looks_3 trendisyourfriend with 36 posts (38 thanks)
    4. looks_4 bobwest with 14 posts (75 thanks)
      Best Posters
    1. looks_one bobwest with 5.4 thanks per post
    2. looks_two Jigsaw Trading with 4.5 thanks per post
    3. looks_3 Fat Tails with 4.1 thanks per post
    4. looks_4 Big Mike with 3.6 thanks per post
    1. trending_up 176,437 views
    2. thumb_up 816 thanks given
    3. group 117 followers
    1. forum 367 posts
    2. attach_file 100 attachments




Welcome to futures io: the largest futures trading community on the planet, with well over 125,000 members
  • Genuine reviews from real traders, not fake reviews from stealth vendors
  • Quality education from leading professional traders
  • We are a friendly, helpful, and positive community
  • We do not tolerate rude behavior, trolling, or vendors advertising in posts
  • We are here to help, just let us know what you need
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

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

 
Search this Thread
 

Random Line Theory

(login for full post details)
  #1 (permalink)
 Big Mike 
Site Administrator
Swing Trader
Data Scientist & DevOps
Manta, Ecuador
 
Experience: Advanced
Platform: Custom solution
Trading: Futures & Crypto
 
Big Mike's Avatar
 
Posts: 50,121 since Jun 2009
Thanks: 32,594 given, 98,699 received

I want to test something. It's simple. Place some random lines on your chart prior to the day opening, and see if at the end of the day you feel like those lines were important (try to imagine they weren't random, but some expensive or complicated indicator instead).

I want to make it clear: the point is not that these lines are important or significant in any way. The point is that your mind will THINK that they are!!! So if your mind can think these lines are important, what is your mind thinking about the rest of your indicators that you believe are not random...

Here is my 5m CL chart with my other stuff removed. This is before the open, so what you are seeing is from last week. But the blue horizontal lines are what I have added just now.

I picked the lines as randomly as I could. I only saw what you see on my chart (I didn't look at historical data).

Let the test begin... I will post again at the end of the day. If you guys want to participate please post a clean/empty chart prior with your random lines on it prior to the day's action, then make a second post after the fact so we can see if the lines had any "impact".

Mike

We're here to help -- just ask

For the best trading education, watch our webinars
Searching for trading reviews? Review this list

Follow us on Twitter, YouTube, and Facebook

Support our community as an Elite Member:
https://futures.io/elite/

Visit other sites? Please spread the word about your experience with our community!
Attached Thumbnails
Click image for larger version

Name:	12-27-2010 6-46-28 AM.png
Views:	4124
Size:	30.7 KB
ID:	27359  
Follow me on Twitter Visit my futures io Trade Journal Started this thread Reply With Quote

Can you help answer these questions
from other members on futures io?
ID Indicator ?
ThinkOrSwim
Find the largest volumes in the cluster
NinjaTrader
MCnet: (Multi-Timeframe) Directly Added Indicators vs Ba …
MultiCharts
Looking for VisEMA indicator for NT7
NinjaTrader
Price Action Swing Pro NT8
NinjaTrader
 
 
(login for full post details)
  #3 (permalink)
 redratsal 
Milan (I)
 
Experience: Advanced
Platform: Ninjatrader
Broker: Kinetick
Trading: FDAX,6E,CL,YM,NQ,ES
 
redratsal's Avatar
 
Posts: 1,653 since Oct 2010
Thanks: 1,215 given, 2,084 received



Big Mike View Post
I want to test something. It's simple. Place some random lines on your chart prior to the day opening, and see if at the end of the day you feel like those lines were important (try to imagine they weren't random, but some expensive or complicated indicator instead).

Here is my 5m CL chart with my other stuff removed. This is before the open, so what you are seeing is from last week. But the blue horizontal lines are what I have added just now.

I picked the lines as randomly as I could. I only saw what you see on my chart (I didn't look at historical data).

Let the test begin... I will post again at the end of the day. If you guys want to participate please post a clean/empty chart prior with your random lines on it prior to the day's action, then make a second post after the fact so we can see if the lines had any "impact".

Mike

Interesting thread are we in the Random walk hypothesis ?

Visit my futures io Trade Journal Reply With Quote
The following user says Thank You to redratsal for this post:
 
(login for full post details)
  #4 (permalink)
 Big Mike 
Site Administrator
Swing Trader
Data Scientist & DevOps
Manta, Ecuador
 
Experience: Advanced
Platform: Custom solution
Trading: Futures & Crypto
 
Big Mike's Avatar
 
Posts: 50,121 since Jun 2009
Thanks: 32,594 given, 98,699 received


redratsal View Post
Interesting thread are we in the Random walk hypothesis ?

Well I am trying to demonstrate how so many traders look at indicators as "holy grails", assigning properties to them they do not possess -- such as the ability to predict price.

Let's just see if these random lines have look at all useful after the fact. Will check it for several days. The point being, if you didn't know they were random and price does seem to "interact" with the lines, then you might assign properties to the lines (prediction) that simply don't exist. But since you do know they are random, how will that change your perception and behavior with your other indicators?

Mike

We're here to help -- just ask

For the best trading education, watch our webinars
Searching for trading reviews? Review this list

Follow us on Twitter, YouTube, and Facebook

Support our community as an Elite Member:
https://futures.io/elite/

Visit other sites? Please spread the word about your experience with our community!
Follow me on Twitter Visit my futures io Trade Journal Started this thread Reply With Quote
The following 18 users say Thank You to Big Mike for this post:
 
(login for full post details)
  #5 (permalink)
 Ryanb 
Netherlands
 
Experience: Advanced
Platform: none
Trading: Stocks
 
Ryanb's Avatar
 
Posts: 196 since Sep 2010
Thanks: 117 given, 357 received

I also think that it is interesting but i think that knowing they are fake will take away confidence for yourself, so thereby i won't try this myself as i think you need to trick a part of your brain for that extra confidence

Reply With Quote
The following user says Thank You to Ryanb for this post:
 
(login for full post details)
  #6 (permalink)
 redratsal 
Milan (I)
 
Experience: Advanced
Platform: Ninjatrader
Broker: Kinetick
Trading: FDAX,6E,CL,YM,NQ,ES
 
redratsal's Avatar
 
Posts: 1,653 since Oct 2010
Thanks: 1,215 given, 2,084 received


Ryanb View Post
I also think that it is interesting but i think that knowing they are fake will take away confidence for yourself, so thereby i won't try this myself as i think you need to trick a part of your brain for that extra confidence

The trick for my brain is to be as random as possible, actually if I look at Mike's chart I am influenced by
the Bars and it is difficult for me to trace a line without beeing minded to what I see, I think It would be easier on a blank chart.

Visit my futures io Trade Journal Reply With Quote
 
(login for full post details)
  #7 (permalink)
 Eric j 
NY
 
Experience: Advanced
Platform: Esignal, MBT navigator
Trading: Currencies
 
Posts: 2,526 since Jun 2009
Thanks: 1,396 given, 2,576 received

The idea is that if you randomly place a horizontal line before an open does it see a reaction to it in the future - correct ?

Im in and will post a chart tonite . Prolly be a very valuable lesson to be had here , thanks Mike .

Visit my futures io Trade Journal Reply With Quote
 
(login for full post details)
  #8 (permalink)
 Big Mike 
Site Administrator
Swing Trader
Data Scientist & DevOps
Manta, Ecuador
 
Experience: Advanced
Platform: Custom solution
Trading: Futures & Crypto
 
Big Mike's Avatar
 
Posts: 50,121 since Jun 2009
Thanks: 32,594 given, 98,699 received


Eric j View Post
The idea is that if you randomly place a horizontal line before an open does it see a reaction to it in the future - correct ?

Im in and will post a chart tonite . Prolly be a very valuable lesson to be had here , thanks Mike .

Correct.

What I posted in post #1 are lines on a chart from last session. Now I want to see how those lines "react" to price on todays session (ie: predict).

Mike

We're here to help -- just ask

For the best trading education, watch our webinars
Searching for trading reviews? Review this list

Follow us on Twitter, YouTube, and Facebook

Support our community as an Elite Member:
https://futures.io/elite/

Visit other sites? Please spread the word about your experience with our community!
Follow me on Twitter Visit my futures io Trade Journal Started this thread Reply With Quote
The following user says Thank You to Big Mike for this post:
 
(login for full post details)
  #9 (permalink)
 trendisyourfriend 
Legendary Market Wizard
Quebec
 
Experience: Intermediate
Platform: NinjaTrader wt Rancho Dinero's profiling tools
Broker: AMP/CQG
Trading: ES, NQ, YM
 
trendisyourfriend's Avatar
 
Posts: 4,066 since Oct 2009
Thanks: 3,718 given, 5,260 received

What are the positive aspects of placing a line on a chart at random or not ?

What are the negative aspects of placing a line on a chart at random or not ?

Can you answer these two questions ?

What is the usefullness of using Fibonacci lines or Murray math lines ?

Do you think a heavy horizontal volume node has some importance or has no influence at all ?

Reply With Quote
The following 2 users say Thank You to trendisyourfriend for this post:
 
(login for full post details)
  #10 (permalink)
 Big Mike 
Site Administrator
Swing Trader
Data Scientist & DevOps
Manta, Ecuador
 
Experience: Advanced
Platform: Custom solution
Trading: Futures & Crypto
 
Big Mike's Avatar
 
Posts: 50,121 since Jun 2009
Thanks: 32,594 given, 98,699 received


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

Within 2 ticks...

Mike

We're here to help -- just ask

For the best trading education, watch our webinars
Searching for trading reviews? Review this list

Follow us on Twitter, YouTube, and Facebook

Support our community as an Elite Member:
https://futures.io/elite/

Visit other sites? Please spread the word about your experience with our community!
Attached Thumbnails
Click image for larger version

Name:	12-27-2010 9-03-20 AM.png
Views:	2575
Size:	35.6 KB
ID:	27364  
Follow me on Twitter Visit my futures io Trade Journal Started this thread Reply With Quote
The following 10 users say Thank You to Big Mike for this post:


futures io Trading Community Traders Hideout > Random Line Theory


Last Updated on September 26, 2019


Upcoming Webinars and Events
 

NinjaTrader Indicator Challenge!

Ongoing

BloodHound Fundamentals 101 w/Jeremy Tang @ SharkIndicators

Elite only
 

Our 12-year anniversary w/ $$,$$$ prizes (check soon)

June
     



Copyright © 2021 by futures io, s.a., Av Ricardo J. Alfaro, Century Tower, Panama, Ph: +507 833-9432 (Panama and Intl), +1 888-312-3001 (USA and Canada), 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