Comments for OlsenBlog

Comment on How to trade: managing exposure by maoz

maoz — Fri, 30 Jul 2010 13:37:01 +0000

Thank you for sharing with us this focused booklet.

One question, how do you define the 2% fundemantal demand?. something like real cash for tourists or funding for business transactions?.

Thank you

Comment on Why we need second by second interest rate payments by Mark Brant

Mark Brant — Fri, 30 Jul 2010 02:22:19 +0000

Sir, I believe that your companies should set up liasons in NYC and D.C. to interact with the Fed in this regard. If the Fed began to implement your technologies, in time the STP systems would become viral, much like the internet has, and the global banking system would probably run close to the way you envision it should. Great ideas Richard!

Comment on THINK ABOUT PRESS: How to Trade by Asaf

Asaf — Fri, 23 Jul 2010 17:31:38 +0000

Richard,

Very informative and very well written booklet.

I think that the most important thing that traders miss when they get into this market is proper expectation setting. You have talked about the fact that traders that make 6% a year should consider themselves as part of the “hall of fame” but unfortunately traders are being falsely marketed to that making 100% a month is super easy and there lies the problem – wrong expectation from trading.

So my 2 cents for traders – set your expectations right and don’t swing for the fence.

– Asaf.

Comment on THINK ABOUT PRESS: How to Trade by Deevz

Deevz — Fri, 23 Jul 2010 03:19:20 +0000

Come to think of it after reading your book, the phenomenon described above can probably be explained by the cascade principle you describe in this booklet and various papers of yours. My hypothesis is a bit different, it is that retail traders will be on the losing side more often than the big institutions, since the former were allowed in the forex market for liquidity needs by the banks… The banks are in there for a profit, therefore they had planned the retail traders to lose, unless we accept the fact that the banks try to always stay risk neutral and use the liquidity to hedge their position and make money from spread on customer orders.

Comment on THINK ABOUT PRESS: How to Trade by Mark Brnat

Mark Brnat — Thu, 22 Jul 2010 22:50:43 +0000

Richard, Thx for the E=MCsq. of fractal trading. It is fascinating to imagine the sophistication of your automated programs based on the ideas outlined in your booklet. I will read it once a week for the next year for new inspiration. Also, I have discovered the grid lines on the charts and they work well as trigger, stop-loss, and take-profit points on many time frames, purely from a short-term momentum perspective. Maybe you can program the grid breaks and barriers too. Thanks for so many new ideas and tools and please keep them coming!

Comment on THINK ABOUT PRESS: How to Trade by Deevz

Deevz — Thu, 22 Jul 2010 22:26:11 +0000

This is awesome Mr. Olsen!
Looks like a light read, I’ll have a go at it after having supper. I can’t help but notice, after reading the intro, that you haven’t talked of the mechanics of markets, the “order flow”. You’ve been making a few comments on twitter that grab my attention about traders shorting or longing too much and how it affects the path of lesser resistance and can’t help but wonder which positions you are talking about, those of retail traders, institutional/bank traders, or the market as a whole? I can’t seem to find any article on your fine blog about this. Anyway, thanks for sharing all these little trading knowhow gems!

Comment on THINK ABOUT PRESS: How to Trade by s5804

s5804 — Thu, 22 Jul 2010 13:51:32 +0000

First, thank you very much for the very nice booklet. Very much appreciated. I think it’s very clear and to the point written.
Speaking for myself, a beginner would have some trouble to translate the words to practice, hence one get apatite for more. I wish every section could be expanded a bit more with typical examples. Hopefully one day you get time.
Again thanks

Comment on How to trade: managing exposure by raul

raul — Thu, 22 Jul 2010 08:54:14 +0000

So a basic strategy would be to price average at extreme prices. Being a beginner it is difficult to tell a possible price re-bound apart from a trend change.
Do graphically visual support/resistance levels have any relevance to price averaging? Or what would be better suitable to identify suitable extreme prices?

Comment on How to trade: managing exposure by richardo

richardo — Wed, 21 Jul 2010 16:06:03 +0000

Yes, price averaging is beneficial for short term strategies. The difficulty of price averaging short term strategies are the ‘fat-tailed’ price distributions. Short-term the price extremes are far bigger relatively speaking than long term; so the trader needs to be ultra careful about the rate at which he does his averaging. If he is too aggressive, he runs out of margin capital.

Comment on How to trade: managing exposure by raul

raul — Mon, 19 Jul 2010 22:26:47 +0000

Is price averaging also beneficial in short term strategies?
For example has Olsen seen evinced that profitable traders also price average intraday strategies? Further, if one compare profitability of very short strategies (less than one hour) without price averaging, vs. intra-day strategies with price averaging vs. long term strategies. Are there any clear findings to which approach seems to hold up better?