I use MAs, classic chart patterns, trend lines, support and resistance to help "make a decision". Proper position size, stop-losses are a MUST. I don't believe TA indicators will provide me with a holy grail, but will help me pick a direction. Once I'm in a position, I will follow my profit and loss rules without hesitation. Also, the traders at SMB do not prevent me from being profitable. I am not in competition with them. I am in competition with myself and how disciplined I can be with my research and testing.
I have been working since 2008 and I do only this, fulltime, I have created about 2500 indicators, they are not indicators like macd and rsi or all the other known indicators, they are not even variants, they are complex ideas, they are very powerful and unique tools in the world, but most of them could not beat the market. Only about 100 of them are superlative tools. I personally would never trust the classic technical indicators, because everybody uses them, it takes important creativity in this work in my opinion, however it is beautiful to see all those traders in a room helping each other, I like it very much, congratulations for what you do.
Indicators a price signal enhancements that aid us. They can’t be used to replace price action. All indicators (except volume) are derived from price action, but not the price action itself.
RSI-overbought going short oversold going long I cant tell you how much this indicator has helped me with trading support and resistance plays such a simple indicator
Here is my take on moving averages: they are like footprint tracks. Your footprint in the sand, snow, etc. show the direction of where you traveled. Your footprint is a lagging indicator, because they occurred in the past. If I was a missing person, and a detective was looking for me, he would look for my tracks. They show the direction in which I traveled. Now if someone says, don't look for tracks because they are lagging indicators, they would be right but wrong in stating that they don't matter.
There was something in this video that i discovered a month ago and have built what looks to be a promising strategy from my backtesting. Glad to know i'm on the right track.
The MACD lengths 3,9,5 provided by Garrett has helped me immensely with when to enter and exit. I've added it as training wheels to support and enhance my information. It has actually helped me turn the corner. I'm still using small size, but I'm finally seeing a small uptick in p/l. (Much to continue working on.) Thank you so much Garrett!
I respect you guys because you are professionals but holy cow I’ve never seen a more complex explanation regarding moving averages. I use three main moving averages the 200 the 20 and the 8 that’s it. I use them as support, resistance and I use them to see if the market is oversold or overbought that’s it. It’s that simple.
Greetings! I'm barely at Novice level with options & trading. I am so impressed with your group and the effort put forth to provide this information! Very well done, Men! Thank you once again!!
I Love indicators! Because it’s the best way to verify the levels and give you a perspective of when you’re thesis is about to be over or coming true! Especially if you’re a Visual type of trader like myself. You just have to do enough back testing to be confident in your setup to take the trade.
im going to learn trading from scratch through you guys i just got a feeling after watching this video dont no why but i got a good feeling wish me luck
❤Backtests and more details on the strategy and approach to improving results are always best practices you should include in as much of your content as possible.
I always wondered how do naked chart traders ever get better at filtering bad trades. At some point you reach a limit of options without new indicators. How he explained things is exactly how ive approached things building my indicator system. Its basically common sense but common sense isnt common nowadays. Great video thanks for the inspiration. Live testing start of the year. Wish me luck 😇
I'm very new to the trading game and have only started learning about indicators. I'm very interested in learning and growing because I don't want to keep working for money, but would rather have the money start working for me. My biggest struggles currently, are learning when to make my entries and exits, or remaining on hands to make the most of a trade and when to get out of a trade that isn't going like I'd hoped. Appreciate the content you put out.
For me moving averages really help me put the charts in context. On smaller timeframes the 9ema often helps me identify entry points on reversals and for trend-catching strategies as well. I love to see a 1 or 2 minute chart at the open supressed below a 9ema repeatedly rejecting off of it. If that chart has a bigger picture long setup where I may be scouting a long entry based on a 1 hour timeframe I can wait for the reclaim of that 1 min 9ema for my entry. If I see it zoom above the 9ema I try to catch it immediately on the first pullback. Can result in fantastic risk to reward trades when it all comes together and may be the first sign of "the right side of the v"
Indicators help one see if stock is bullish or bearish and to what historical extent. The assumption being that they can help provide some predictive quality over a period of time.
It would be greatly helpful to see the strategy description along with the backtest results. Furthermore, the sensitivity analysis of the variables would be of great value. Thanks for your informative and insightful videos.
So in using indicator move trigger points, do you find it best using triggers related to average true range, taking into account volatility, or just straight price points movement?
Indicator is just one of the tools for you to use. Take it like you are going for a dive, you will need your diving suit, your diving mask , your oxygen tank and the oxygen meter. Well, indicator is likely that oxygen meter that you need to keep a look out on ?anyhow it is part of the equation of a robust and efficient strategy and not a singular must have item
It would be helpful to know which indicators are more for specifc types of instruments , ie forex, stocks, futures, which are better for identifying the different trading types, scalp, intra, long term..which settings are ideal, the web is riddled with everyones opinions, but they very rarely identify in which situation they apply them with the nuance of the situation, you guys do go deeper and thats decent.
I love the analogy of a strategy like a car and indicators like a feature of a car and the different types of cars I will need depending on the strategy being implemented - brought realization to me like a paradigm moment! Thank you for sharing = found SMB Cap this year and can't wait for the knowledge I will get from your video in 2024 - thanks again...
On their own or using it as a signal by itself is useless especially at the default settings. Understanding the math behind the indicator and then seeing if you can use that math to improve a trade is the best way imo. At the end of the day it's up to the trader to understand the price action and then see if an indicator can help refine that setup
Great video. This is the only channel I follow. I will say though, that any training or testing you do, will never stop banks from pulling the rug out from underneath you, turning the market into a falling knife if you're going long.
I really love the content you put out with garrett, and yes please I would love to see more videos regarding backtesting from you! What is the name of the software shown here for backtesting?
keep doing these! i love when this guy is on (this guy? rude. i should remember his name) Garrett thats his name i love these and i know others do to, im not a pro im not an amatuer. heck the video with the BBands going inside the keltner mixed with the ttm squeeze really unlocked something i already knew but in a new way. it was basically understanding the tool as once you had the ttm squeeze set up the way you did. you then basically didnt need the keltner w bbands. and vis versa if you didnt have the squeeze. but yes plz more. this comment also helps the youtube algorithms. cheers :)
"Expected Value" and backtesting are fundamental aspects of building financial strategies (something I've done for major credit card and mortgage issuers). UA-cam investing videos tend to emphasize trading and making money rather than exploring the methodology of strategy development . Please let me know what you offer interms of backtesting in your paid course?
There is 390 min in a trading day. I use the 195 min chart, 130 min, 65 min, 30 min, 15 min, 10, 5, and 2min. 15MA and the 195MA. RSI 15 and 65. Why these numbers? They are all prime of 390. They are all prime of 390. 4 hours doesnt work and neither is the 1 hr.
What happening guys I been following the channel not too long ago . How would I trade as swing trader and don't have time to stair at the computer what are some strategies that I could use . Hold stocks for a couple day max a week
The problem with all this stuff is, no matter how good it is, you are competing with other people doing the same thing and even worse, people actively moving the market to screw up your beautiful algorithm. (Machine learning programmer here)
No indicators, oil first red day consolidation above yesterday's low is a dead giveaway they are coming bqck through the low. Or yesterday the way they pumped price up into closing price ahead of the open for the sell back through the low of day. Like the TSLA fade yesterday I would be curious how some of the SMB guys look at the trade because the writing was on the wall before the open.
Bella, you guys at SMB always talk about your top traders using dollar amount. Can you instead for once say what a top dog makes in terms of percent? I.e. what is considered an "elite" annual return on capital?
I think portfolio managers use ROI as the gauge of their success. While traders prefer PnL because they typically use borrowed capital and it fluctuates, as well as they can use a different amount of capital for different trades
@@highlytenacious7608 PnL is meaningless. Did you make that $8K today using $200,000 in margin or $900,000 in margin? Huge difference in performance that SMB never discusses. They just like to throw around big numbers and the word "elite" with no elaboration or details
Thanks guys! Always like your videos! Just wanted to give you a heads up as I've created some studies of my own that are highly accurate at predicting the market. Just to give you an idea of my latest studies' predictions, close to Nov 10 I noticed an incredible amount of bias for the market towards the upside. I told some of my contacts and by the end of the month they said it was THE BEST month of the year! I told people likely it meant the FED would soon change his stance on hiking rates and that there were other positive developments along with seasonal patters that make the market bullish. I also said they may want to consider taking advantage of their 401ks or so. There are other times when I saw perfect turns as well and guess what, my studies are telling me that there is a very high probability of the market retracing now, after an incredible weekly run that as per some people it hasn't been seen since 1971. So at the very least this rally should stall and quite likely it will soon start retracing. Leaving my two cents hoping it helps you guys in any way. Happy New year to Mike and all of you!
I disagree. They just don’t beat around the bush and give compliment sandwiches like you’re used to. If someone is fucking it, they call it out. These guys are professionals. Think of a coach of a professional team. You think he cares about making sure he doesn’t hurt someone’s feelings? His job is to get top performance from his team at all times. He will get knee deep in their ass if that’s what it takes. These guys are like a pro sports team and it’s the reason they are so successful. With that being said, I can’t believe you feel Garrett is “talking down” to you. He has such a laid back and helpful delivery. Really great teaching skills. Jeff is super intense for sure but I’ve already outlined the reason why.
Usually when you think someone's is talking down to you, it's usually because your head is so far up your own ass they have to talk to your groin to hear any response..
I feel like that's a massive generalization. Indicators may be wrong for you. I also don't use indicators. But a lot of profitable traders do. And there's nothing wrong at all with that.
@@Recovery-Traders Well when I started I used them and always failed once I learned price action it was blessing… Indicators are just retail traps been a profitable trader for 8 years now, but if anyone makes it work good for them…
SMB's new scalping course (free) tinyurl.com/ymcuzhwf
Garrett is my favorite speaker to learn from. Tons of knowledge and always has an interesting perspective. His delivery is top notch.
I use MAs, classic chart patterns, trend lines, support and resistance to help "make a decision". Proper position size, stop-losses are a MUST. I don't believe TA indicators will provide me with a holy grail, but will help me pick a direction. Once I'm in a position, I will follow my profit and loss rules without hesitation.
Also, the traders at SMB do not prevent me from being profitable. I am not in competition with them. I am in competition with myself and how disciplined I can be with my research and testing.
I have been working since 2008 and I do only this, fulltime, I have created about 2500 indicators, they are not indicators like macd and rsi or all the other known indicators, they are not even variants, they are complex ideas, they are very powerful and unique tools in the world, but most of them could not beat the market. Only about 100 of them are superlative tools. I personally would never trust the classic technical indicators, because everybody uses them, it takes important creativity in this work in my opinion, however it is beautiful to see all those traders in a room helping each other, I like it very much, congratulations for what you do.
Do u share/sell any of your indicators? X
Indicators a price signal enhancements that aid us. They can’t be used to replace price action. All indicators (except volume) are derived from price action, but not the price action itself.
RSI-overbought going short oversold going long I cant tell you how much this indicator has helped me with trading support and resistance plays such a simple indicator
Here is my take on moving averages: they are like footprint tracks. Your footprint in the sand, snow, etc. show the direction of where you traveled. Your footprint is a lagging indicator, because they occurred in the past. If I was a missing person, and a detective was looking for me, he would look for my tracks. They show the direction in which I traveled. Now if someone says, don't look for tracks because they are lagging indicators, they would be right but wrong in stating that they don't matter.
There was something in this video that i discovered a month ago and have built what looks to be a promising strategy from my backtesting. Glad to know i'm on the right track.
that guise who explains talk with pure technical term like quant trader. FANTASTIC EXPLANATION
As with most "polarizing" subjects the truth often lies somewhere in the middle. This was fantastic thank you.
I trimmed right back and just use price and volume, recently withdrew moving averages and my win rate has improved once again
The MACD lengths 3,9,5 provided by Garrett has helped me immensely with when to enter and exit. I've added it as training wheels to support and enhance my information. It has actually helped me turn the corner. I'm still using small size, but I'm finally seeing a small uptick in p/l. (Much to continue working on.) Thank you so much Garrett!
How's your experience been so far, given it's been 3 months now ?
15:39 I love watching the backtest sample charts and comparisons while you talk about it. 🙏🏻
Respectfully those charts look garbage
I respect you guys because you are professionals but holy cow I’ve never seen a more complex explanation regarding moving averages.
I use three main moving averages the 200 the 20 and the 8 that’s it. I use them as support, resistance and I use them to see if the market is oversold or overbought that’s it. It’s that simple.
Greetings! I'm barely at Novice level with options & trading. I am so impressed with your group and the effort put forth to provide this information! Very well done, Men! Thank you once again!!
Not useless. Quantify and measure the market conditions for the setup then look for the price action corresponding to the play you’re executing. 👍
I Love indicators! Because it’s the best way to verify the levels and give you a perspective of when you’re thesis is about to be over or coming true! Especially if you’re a Visual type of trader like myself. You just have to do enough back testing to be confident in your setup to take the trade.
im going to learn trading from scratch through you guys i just got a feeling after watching this video dont no why but i got a good feeling wish me luck
❤Backtests and more details on the strategy and approach to improving results are always best practices you should include in as much of your content as possible.
I always wondered how do naked chart traders ever get better at filtering bad trades. At some point you reach a limit of options without new indicators. How he explained things is exactly how ive approached things building my indicator system. Its basically common sense but common sense isnt common nowadays. Great video thanks for the inspiration.
Live testing start of the year. Wish me luck 😇
I'm very new to the trading game and have only started learning about indicators. I'm very interested in learning and growing because I don't want to keep working for money, but would rather have the money start working for me. My biggest struggles currently, are learning when to make my entries and exits, or remaining on hands to make the most of a trade and when to get out of a trade that isn't going like I'd hoped. Appreciate the content you put out.
For me moving averages really help me put the charts in context. On smaller timeframes the 9ema often helps me identify entry points on reversals and for trend-catching strategies as well. I love to see a 1 or 2 minute chart at the open supressed below a 9ema repeatedly rejecting off of it. If that chart has a bigger picture long setup where I may be scouting a long entry based on a 1 hour timeframe I can wait for the reclaim of that 1 min 9ema for my entry. If I see it zoom above the 9ema I try to catch it immediately on the first pullback. Can result in fantastic risk to reward trades when it all comes together and may be the first sign of "the right side of the v"
Thats genius
i think what you don't realize is the MA's help you "filter out" the the high frequency trading noise..
Indicators help one see if stock is bullish or bearish and to what historical extent. The assumption being that they can help provide some predictive quality over a period of time.
It would be greatly helpful to see the strategy description along with the backtest results. Furthermore, the sensitivity analysis of the variables would be of great value.
Thanks for your informative and insightful videos.
Keep doing what you guys are doing and have a Happy New Year!
Happy new year!
Yes. Indicators are not strategies themselves. That's where many people get it wrong.
absolutely
So in using indicator move trigger points, do you find it best using triggers related to average true range, taking into account volatility, or just straight price points movement?
Excelent video.... could you do an example of that strayegy that you back tested... gap downs... this is clicking for me
Outstanding video now I need to go figure out what the calmer ratio is to measure it for my own backtests.
Indicator is just one of the tools for you to use. Take it like you are going for a dive, you will need your diving suit, your diving mask , your oxygen tank and the oxygen meter. Well, indicator is likely that oxygen meter that you need to keep a look out on ?anyhow it is part of the equation of a robust and efficient strategy and not a singular must have item
It would be helpful to know which indicators are more for specifc types of instruments , ie forex, stocks, futures, which are better for identifying the different trading types, scalp, intra, long term..which settings are ideal, the web is riddled with everyones opinions, but they very rarely identify in which situation they apply them with the nuance of the situation, you guys do go deeper and thats decent.
Indicators are tools to make ones trading that much more profitable, all the top traders have used them.
indeed!
Thank you for the opportunity 🙏
What 2 indicators work best together? I like the 8 and 21 ema cross in combination with atr and/or RSI
This is all personal choice but those are very common on the desk here
On which tf though?
@@lilili101 I use daily and 5 minute
I love the analogy of a strategy like a car and indicators like a feature of a car and the different types of cars I will need depending on the strategy being implemented - brought realization to me like a paradigm moment! Thank you for sharing = found SMB Cap this year and can't wait for the knowledge I will get from your video in 2024 - thanks again...
On their own or using it as a signal by itself is useless especially at the default settings. Understanding the math behind the indicator and then seeing if you can use that math to improve a trade is the best way imo. At the end of the day it's up to the trader to understand the price action and then see if an indicator can help refine that setup
Isn’t that what they just said?
Maybe watch the video before commenting next time. That’s literally the message they delivered.
Great video. This is the only channel I follow. I will say though, that any training or testing you do, will never stop banks from pulling the rug out from underneath you, turning the market into a falling knife if you're going long.
That's what a stop loss is for.
Gotta keep those stops at a reasonable risk level for your EV
What would be the best indicators for double calendars on spx?
variable section is so new to me - eye opening !
I really love the content you put out with garrett, and yes please I would love to see more videos regarding backtesting from you!
What is the name of the software shown here for backtesting?
So helpful. Thank you SMB!!
keep doing these! i love when this guy is on (this guy? rude. i should remember his name) Garrett thats his name i love these and i know others do to, im not a pro im not an amatuer. heck the video with the BBands going inside the keltner mixed with the ttm squeeze really unlocked something i already knew but in a new way. it was basically understanding the tool as once you had the ttm squeeze set up the way you did. you then basically didnt need the keltner w bbands. and vis versa if you didnt have the squeeze. but yes plz more. this comment also helps the youtube algorithms. cheers :)
M understanding what they are saying without giving anything!!.... but they are right!!.... m happy i was thinking like that!!....
Excellent video, please make more of these !
I enjoyed your perspectives.
I like the idea of seeing indicators like features, but I was just wondering if the 2nd zipper of the pullover is a feature or a bug? haha
what tool are you using for your backtesting?
"Expected Value" and backtesting are fundamental aspects of building financial strategies (something I've done for major credit card and mortgage issuers). UA-cam investing videos tend to emphasize trading and making money rather than exploring the methodology of strategy development . Please let me know what you offer interms of backtesting in your paid course?
What backteating software do you use? I just started out with quantconnect and python.
Can you make a video on Variables to consider while entering a trade....Thanks what u do for trading community.
we may have done something like this before but could work on that concept for the future
More backtesting-based videos would be appreciated! Thanks for your videos.
I think a few indicators are fine. Price is one of them.
There is 390 min in a trading day. I use the 195 min chart, 130 min, 65 min, 30 min, 15 min, 10, 5, and 2min. 15MA and the 195MA. RSI 15 and 65. Why these numbers? They are all prime of 390. They are all prime of 390. 4 hours doesnt work and neither is the 1 hr.
What happening guys I been following the channel not too long ago . How would I trade as swing trader and don't have time to stair at the computer what are some strategies that I could use . Hold stocks for a couple day max a week
The problem with all this stuff is, no matter how good it is, you are competing with other people doing the same thing and even worse, people actively moving the market to screw up your beautiful algorithm. (Machine learning programmer here)
No indicators, oil first red day consolidation above yesterday's low is a dead giveaway they are coming bqck through the low. Or yesterday the way they pumped price up into closing price ahead of the open for the sell back through the low of day. Like the TSLA fade yesterday I would be curious how some of the SMB guys look at the trade because the writing was on the wall before the open.
Thank you for interesting videos and I wish you Happy New Year 2024 and much success in your trades.
Bella, you guys at SMB always talk about your top traders using dollar amount. Can you instead for once say what a top dog makes in terms of percent? I.e. what is considered an "elite" annual return on capital?
I think portfolio managers use ROI as the gauge of their success. While traders prefer PnL because they typically use borrowed capital and it fluctuates, as well as they can use a different amount of capital for different trades
@@highlytenacious7608 PnL is meaningless. Did you make that $8K today using $200,000 in margin or $900,000 in margin? Huge difference in performance that SMB never discusses. They just like to throw around big numbers and the word "elite" with no elaboration or details
I use my compass to find the right direction
😂
vwap is all I need.
This is awesome!
thanks!
Well Here's Garrett about to lose his shit again on camera... you guys are great. Thank you for the videos.
😂
No examples?
You said what I've always felt. Everything in trading is lagging!
please make more video about backtesting
Thanks guys! Always like your videos! Just wanted to give you a heads up as I've created some studies of my own that are highly accurate at predicting the market. Just to give you an idea of my latest studies' predictions, close to Nov 10 I noticed an incredible amount of bias for the market towards the upside. I told some of my contacts and by the end of the month they said it was THE BEST month of the year! I told people likely it meant the FED would soon change his stance on hiking rates and that there were other positive developments along with seasonal patters that make the market bullish. I also said they may want to consider taking advantage of their 401ks or so. There are other times when I saw perfect turns as well and guess what, my studies are telling me that there is a very high probability of the market retracing now, after an incredible weekly run that as per some people it hasn't been seen since 1971. So at the very least this rally should stall and quite likely it will soon start retracing. Leaving my two cents hoping it helps you guys in any way. Happy New year to Mike and all of you!
Maybe a better explanation of the back test would help, what am I seeing
Thanks
You guys hiring?
I don't know about stocks but as forex trader all indicators are useless I only use naked charts
only need RSI and suppoRt and Resistance for me
Good Stuff! 👏🏼
more Backtesting please
noted!
I wonder if there're real successful traders willing to teach their skills, they have better things to do
Stock market is based on assumption.
Can you usd the cartoon to show your example then talking to much please 😮
❤🎉😊
🎉
You are really talking down to people here. Otherwise a really good channel .
I disagree. They just don’t beat around the bush and give compliment sandwiches like you’re used to. If someone is fucking it, they call it out. These guys are professionals. Think of a coach of a professional team. You think he cares about making sure he doesn’t hurt someone’s feelings? His job is to get top performance from his team at all times. He will get knee deep in their ass if that’s what it takes. These guys are like a pro sports team and it’s the reason they are so successful. With that being said, I can’t believe you feel Garrett is “talking down” to you. He has such a laid back and helpful delivery. Really great teaching skills. Jeff is super intense for sure but I’ve already outlined the reason why.
Usually when you think someone's is talking down to you, it's usually because your head is so far up your own ass they have to talk to your groin to hear any response..
Its WRONG to use indicators period!!! 🤣
I feel like that's a massive generalization. Indicators may be wrong for you. I also don't use indicators. But a lot of profitable traders do. And there's nothing wrong at all with that.
@@Recovery-Traders Well when I started I used them and always failed once I learned price action it was blessing… Indicators are just retail traps been a profitable trader for 8 years now, but if anyone makes it work good for them…