Hi, Today I asked the host at a webinar why he uses 144 tick charts, and he bluntly replied he'd tell me when I bought his software (a $5000 piece). I've been googling around and I see many use it, but I still haven't found out what's the magic in this number (why not 140 or 150, for example), except for it is a Fibonacci number. What gives? Thanks.
Sounds very questionable to me. There's no way for me to know the details of this, but I personally would never fork over $5k based on this info. My impression is that systems that really work are rarely, if ever, sold, and that they are mostly used to trade internal funds or hedge funds as they are not infinitely scalable. Caveat emptor.
Not to mention that next week he's going to scale up the price another thousand, and so on. The system apparently works (I followed it real-time for a couple of hours during the session) and it seems to base its entries on pivots. But I would never buy into such a blunt sales tactic. However, my question was on the technical side. Why do people use the 144 tick chart as opposed to any other value? Regards.
There is none. A robust method (or rigid system) should run profitably across a myriad of charts. If the equity curve is based on a massaged chart setting, it is short-term curve fitted. If the guy was working discretionary and that's the chart he used, it's just a random selection based on fibs and nothing else. It won't work any better or worse than 125-tick, 150-tick, 162-tick, etc imo it's a waste of $5k but that may be construed as a biased opinion. whatever. let's just say that no magic exists in any particular chart setting... but everyone has to settle on some setting for some random reason.
if you're selling a "profitable" trading system it just means 1 thing.......... it doesn't work and the op needs mo money for his "HABIT"
if you use 1 tick chart, 144 willl front run you. So i front run the 142 tick to 143-tick-chart-guy .