I penned a Tweet some time ago railing against the concept of 'confirmation' in trading.

So, Trader X gets some form of 'signal' [source/style/generating process irrelevant] and then, inexplicably waits for 'confirmation'.

Now - I would bet that 'confirmation' in the

overwhelming majority of cases, means waiting for the price to move in your direction. There is so much wrong with this as part of your process - there really is - But let's not go down that rabbit hole right now.

What might be interesting is if you had some other signal

generating process [again, source irrelevant] that was completely and utterly unrelated to the internals of how you produced the first signal. Now in this case, you may be more justified in using 'confirmation'.

Note these points:
* If the 'confirmation signal' is good at

'confirming' then just maybe it is a superior alpha signal to your underlying alpha signal! Check it out - you may be surprised.

* I would say that it is exceedingly difficult to find two 'completely and utterly' unrelated that generate contemporaneous signals -so be very sure

* Also note that having two signals [and let's say that they occur very close in time to one another and that they are 'completely and utterly' unrelated] does not mean - in and of itself - that your chances on the next trade are any better than they are using just the

one method.

There is some interesting work to be done based on what is within this tweet if you are that way inclined.