Alternative views on SPM

Discussion in 'Strategy Development' started by jack hershey, Oct 28, 2008.

  1. <FONT FACE="arial" SIZE="2"><TABLE BORDER=5 BORDERCOLOR=RED CELLPADDING=5 >
    <TR> <TD> Moderator's Comment:
    I have split these posts from SPM Discussions
    so that readers can focus on the respective discussion.</td></tr></table>
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    All you are pointing out is that you are using the zero line cross of the histogram of a defaulted MACD. The default is off in your case.

    You may want to explain these three timing aspects of beginner trading to T28:

    1. Use a default related to electronic data transmission. Appel, long ago came up with the deaults you use before electronid communication. He also used absolute values "away from zero" as signals for trending. It is worth looking them up. the elcectronic defaults came into vogue before both of you began trading and using paid web site chat sites. The modern defaults are 5 13 6.

    2. The MACD lagging signal used by T28 is well apparent since he has modified it with an shifted MA band aid that still doesn't work. Nothing he posts works for exits as we all see.

    He must have read somewhere (like the place where you get you out of date quotes, that the zero line cross over applies directly to the MACD curves; it doesn't. You point that out with the two charts you posted here. Everyone sees the the black to white and white to black are the histogram zero line crossover points. I pointed that out graphically on a "tuned" chart that jahajee posted a few weeks back just before the cosing of the ...lol.....SPM bootcamp.

    3. So any interested in trading using MACD can simply use the correct default, the correct signal AND the correct type of trading tool.

    The correct trading tool for MACD trading is the REVERSAL. If you run a log and do reversals when the color changes, then you contiually take the offer of the market. This get any trader out of the 1 contract level trading in a very short time. his equity curve is a Power Law curve instead of the flat linear curve both of you are showing for the last two years.

    You are not in the market very much since you do not trade frequently or understand what you are posting. The three points I simply make above, give you EXITS in a trading strategy. the T28 motto is: "EXITS are you own business because its your trading style". Humor is important in posting and that tops them all.

    Black is a LONG hold and White is a SHORT hold. What is in between is a REVERSAL trade to KEEP YOU ON THE RIGHT SIDE OF THE MARKET AT ALL TIMES.

    <img src=http://www.elitetrader.com/vb/attachment.php?s=&postid=2147061 width=800>

    So why can't SPM traders get this? The main reason is that durinf midday chop they lose as much as they gain elswhere during the day. Why is this? see the default disscussion above and Appel's original singal design. He knew that MACD did not work when the signal to noise was below a certain level. You and T 28 do not know or read about that stuff.

    "Away" was the word used by Appel. He set the minimum "away" values in the era BEFORE the PC.

    In TA from A to Z Achelis reviews all the indicators, states their math and gives the signals for the indicators. To modernize the book, it is necessary to add default changes form those of the creators since most creation was done BEFORE the advent of the PC. A Q and A was set up by Chris Christopherson before the advent of ET; he has maintained it. You may want want to check out the post PC defaults that are assigned in those Q and A's on each indicator.

    Then at some point you may want to consider why most ATS's do NOT use indicators. There is one reason: To have a quality ATS a modeller or developer has to take advantage of all the market's variables and take advantage of software languages that wre NOT available before the PC when indicators were created and useful. That era ended when the PC enabled coding languages and modern modelling and development began to be done by programmers working under the direction of modelers and developers.

    SPM will NOT be able to use the proper defaults of MACD: it will not use the proper zero line cross of the histogram and it will not do reversal trading as a way to include entry and exit signals all mechanical methods do have. That is too bad.

    At last a couple of chart were put up to show these three things as the alternative to what is being done.

    as we know MACD is not needed since SPM has gone on to usingPA trading. Notice that none of you participate in the PA threads run by others.
     
  2. My bestest friend Jack finally couldnt take it anymore..... and had to stop in to say hello.
     
  3. For your reference there are 17 winners shown above.

    Hope you learn how to anotate your trades on a chart. Especially the exits. Whether a trade wins or loses is determined by the exit.

    back on ignore.....
     
  4. Jack - w/ all due respect, can't you just stick to the many threads dedicated to you and your trading ideas? Is it possible for a thread on ET to exist w/o you?

    As Tums has said many times, create YOUR OWN THREAD if you want to go off in a different direction. Maybe Tums will take it and start your own thread for you.

    There are very good ideas on this thread that is working. Is it a step-by-step hand-holding process like what you are attempting to do w/ Neoxx? NO. And that's the beauty of this - it's up to the end user to work it and see if it can work for them.

    Enough of your endless drivel of words after words after words already. Many have asked you to prove in real-time that you can even trade, yet those requests go ignored. Throughout this very thread you have guys posting their trades and/or charts showing actual, real-time trading going on. Have you EVER done that? Not after-the-fact crap either, in real-time as it's happening...

    I'm sure you will just ignore that last paragraph completely as you do w/ anyone else that asks you to step up to the plate once and for all.
     
  5. I think you'd better get back to tutoring Neoxx old man. He, Spydertrader and your other cultists are the only ones who blieve your bullshit ... I see they're making a lot of money doing it to, LOL :) :D

    Nope the "standard settings" are working just fine for us here, we're making money everyday and will size up as is appropriate.

    I can see that Neoxx is cashing in too (according to Jack's spreadsheet, he will soon - within 3 months - be making over $300,000 per day and will be trading a size which is too large for the ES to handle - I kid you not and will provide the backup information if you need it).

    No Jack.

    I trade, make money, and go about my business. You are the one posting nonesnese, making no money from the market, and promising the moon and the stars to a stupid, brainwashed, newbie.

    Who here really thinks Jack knows anything? Raise your hand. Be ready to post your blotter to show how much money you're making based on his alzheimer induced nonsense ... yeah, I thought so. Sit back down

    That's funny.

    Trader28, myself and others are seeing it work in front of our screen every single day ... on muliptle trading instruments.

    Your system, on the other hand, still has yet to be figured-out despite 100's of pages that Neoxx has written, and he has yet to show that he can trade 1 contract successfully, much less a number which would "blowout the liquidity of the ES" like you have mentioned. :p

    We don't need to post anywhere else ... we seem to be trading quite successfully right here. More successfully than the SCT traders and more successfuly than the Price Action 1.5 traders as well.

    Damn, SPM kicks the shit out of everything!

    ***

    Anytime you or Spyderfader are ready to get serious Jack, come find us and lets do business. If you are afraid of losing the money in your account the way you have in the past, go find Mark Brown, I hear he has a deal where he will fund your account for you ... LOL :) :D
     

  6. well you asked.

    Bad default (bridging in chop, etc) but here goes?

    The chart says it all.

    [​IMG]

    It especially points out why using your mistaken application of the zero line crossover net less profits. I assume you use the MA crossover to make any money on the lagging entry you use.

    Convergence is already beginning for the next histogram zero give it four bars for exiting the long.
     
  7. Tums

    Tums

    .

     
  8. SPM is a formidable start for those wanting to get their feet wet but the ultimate goal, as stated many times by the SPM creator is Price Action.

    SCT on the other hand is the biggest nonsense in ET since the National Enquierer.

    Sample attached.

    TV

    <img src=http://elitetrader.com/vb/attachment.php?s=&postid=2149270 width=800>
     
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  9. And everyday we show the trades. And, this is good for us. Some of us are newbies who learn as they start with the basics and then get into more advanced PRICE ACTION features and techniques. Some graduate to more complex systems and trading based on a better knowledge of PRICE ACTION.

    Some trade other contracts, some for longer or shorter timeframes, and some add or modify the basic SPM.

    And, it is free, we share and discuss and educate others.

    Why are people against this?

    Are they so selfish that they don't want others to learn?

    I will tell you something, this is a secret, but I am letting it out: the more knowledge and information you share, the happier and more prosperous you become.

    Stop confusing and bamboozling people with useless complex inane nonsense. If you continue then you will forever be mired in a miserable and unhappy existence.
     
  10. Tums

    Tums

    for the record:

     
    #10     Oct 30, 2008