Here’s where you think I’ve gone crazy.
This post is half in jest…but it’s also serious.
Allow me to explain the Buffalo Bills Indicator….
So I came across this pattern on several charts a few months ago over in my trading room one late night, and I posted it…in jest. But I keep seeing it so I figured I’d write a quick post on it.
I’ve noticed that any Chaikin Oscillator that is shaped like the back of the Buffalo Bills’ logo end up with a stock popping.
It works on several timeframes. Don’t believe me?
And my point?
My point is this.
It isn’t to add the buffalo bills logo to your charting tool-kit.
The point is that there’s all sorts of indicators, and what works for you works for you. Personally, I see people post charts with 10 indicators and I mentally implode. There’s patterns everywhere that work until they don’t.
There is no indicator with 100% accuracy. Most people use the same study settings that everyone else does…which gives the algos a hell of an advantage.
So don’t go chasing after the king indicator; there isn’t one. Even Renaissance Technologies sees drawdown. And their returns are disgusting.
Renaissance’s flagship Medallion fund, which is run mostly for fund employees “is famed for one of the best records in investing history, returning more than 35 percent annualized over a 20-year span” From 1994 through mid-2014 it averaged a 71.8% annual return. (Source).https://www.wikiwand.com/en/Renaissance_Technologies
There’s nothing wrong with indicators, but be