Alternative views on SPM

MandelbrotSet · Oct 30, 2008

I see there aren't very many opposing views from people who actually make money trading. :eek:

Now that makes sense.

Tums · Oct 30, 2008

Quote from jack hershey:

Jahagee:

Here is an illustration relative to how you have MACD tunned to price.

You can use any of the three trading techniques cited but the gold version would be the quickestup grade to a good multiple of the ATR daily. And you probably can script it easily as an ATS for many markets.

If you decide to move up to the green level (past beginner level), you must stop the MACD bridging that you current MACD causes.

Have fun.

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Tums · Oct 30, 2008

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Quote from Jahajee:
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ES 5m data JUNE to OCT 2008
1-lot position size; Capital 10,000
Commission $5; Slippage $12.5 (Slippage & commission total $35 per trade)
141 trades, Profit 18,400 ---> 184%
Allowed discretion on stops and profit target with wide stop and profit target @ $2000 each
http://elitetrader.com/vb/attachment.php?s=&postid=2135588
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Quote from jack hershey:
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If you want setup the zero line histogram crossover on the gold version from JUN to OCT and do comparison to the 184% you got.

I think it will show nicely that the SPM mixed up the signal for zero line crossover. Ordinarily it is applied to the histogram AND NOT TO THE FAST LINE OF THE MACD. A common learner mistake.

Once the signal app;lication gets straighten out here, then the exit signals will be straightened out too. The zero line histogram crossover is a REVERSAL signal system AND NOT AND ENTRY EXIT SYSTEM. A common learner mistake.

I think you will like the results. since you have everything right there to illustrate the backtest.

Have fun.

This can be helpful for upgrading the boot camp which is going to drop the MACD soon as they swing into PA trading when they do.
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Tums · Oct 30, 2008

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Quote from sandygray66:

Did anyone answer the question on how to exit?

Entries are easy......exits are the tough part that determines profits or losses.

Or is this another always-in strategy that generates 3x total daily price range like SCT does?
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Quote from jack hershey:
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there are two adjustments for the exits to be done.

1. you have to apply the zero line crossover correctly.

2. you have to have the data on the indicator window.

To do the signal correctly you add a word: histogram. This is how it reads: Reverse on the zero line histogram crossover.

To add the data to the indicator window of MACD, you add the "histogram".

If you wish you can iteratively refine the MACD to its post PC default which is 5 13 6. When you do that the MACD becomes "tuned" to the electronic data flow era.

The money a beginning reader can make comes more from adding contracts from profits than having an scripted ATS of the above and challenging revisions.

Having an ATS on a beginner level MUST include "tuning" or a lot of profits will be given up in the midday on occassion.

I know the elphant in the room is deaffening regarding screwing up not using the signal in the right place and omitting the data for the signal.

This all can be attributed to learner error.

Making the changes is one difficult thing because it involves following instructions which were provided by pm two years ago to not embarass the learner at that time.

Making the changes now is probably too late for this person. He cannot step up and do it. He is too interested in being right than being very very rich.

Skipping MACD is a good idea because it is limiting in terms of going beyond beginner.

You can see that a person has posted 184% form JUN to OCT. That is a good beginner peformance using indicator and their signals.

Here SPM doesn't post the data and doesn't apply the signal correctly.

Two easy things to overcome when you step up and correct your errors.

When done SPM will work for anyone anywhere in the world. If they use it they can help others with their time and new profits.

overcoming OCD is a lot more difficult and OT for this thread.
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MandelbrotSet · Oct 30, 2008

After 20 Days of intense preparation, Neoxx still doens't know what he is doing.

Neoxx Sounds Confused

After 1 Day of intense preperation (for two hours from myself and Trader28, LOL) and one day of practice, The Voyager stepped up to the plate and knocked the ball out of the park ... twice (and something tells me he really wasn't even trying, he was just trying it out - ).

10-27-08, Preparation

Two Days Later

So I'll see everyone up bright and early with their MACD's on their screens ... (that means you TUMS, LOL).

Mandel: this thread is Alternative views on SPM.
I spinned Jacks posts from the SPM discussions thread so that the SPM discussion can go on without disruption or interference.
I consider your post an OT and a sabotaging act.

MandelbrotSet · Oct 31, 2008

Hey Tums,

I've been trying really hard to come up with something negative to say about SPM.

a) I've tried to break it,
b) Tried to come up with alternative systems that are better, more well-designed and easier to trade than the original method that Trader28 provided to all of us, "scott free",
c) tried to figure-out what is wrong with its logic,
d) even tried to second guess the trades that it generates and take positions in the opposite direction (when backtesting, LOL, not with real money).

And I'll tell you what I got for you ... bupkis.

Tums · Nov 22, 2008

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from AHG - Profitable Strategy for Struggling Traders: a reply to Trader28
http://elitetrader.com/vb/showthread.php?s=&postid=1538588#post1538588

Quote from Anekdoten:

PS: Note to self stop taking those lame ass MACD crosses even if the stop is minuscule, that thing lags more than your grandma. Use strictly for trend visual reference, mountain colors or get rid of it.
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He got rid of it.

Tums · Nov 24, 2008

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Quote from austinp:

Wasn't he the guy that sucked everyone into using the MACD?.. just like Jack uses MACD and Stoch"</i>

Yes he was. Gotta admit, T28 is a brilliant mind, gifted wordsmith and from what I hear a real hit with the ladies. Probable to suppose he saw the folly of a failed approach like SPM and has evolved to a higher level of trading since then.

Sure was an entertaining personality, albeit a tad obsessed with JH...
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