Jeanmichel, Thanks for the parameter info. It appears that you are just using MACD with added confirmation with the 3 EMA's. What is your stop loss criteria? Do you use the Parabolic SAR for this? Since you have this on METASTOCK, can you give us some backtested performance results? Richard
Jeanmichel Why did you post your message? - most people post to ask questions - so what was the point of your first post? you are obvioulsy a superb and very rich trader - but i suspect for the average trader - your system will chop them up so much - that they will end up very very poor
Well, I gotta hand to it Jean Michel... this mechanical trader has come onto Elitetrader, and has laid out his trading method and profit objectives... and he isn't selling a thing... he has broken the recent pattern of snake-oiling and is a welcome breath of fresh air... we may not like or agree with what he is saying, but at least its a departure from the vendor scene... my hat goes off to ya, Jean Michel...
It's half legit. It wouldn't be legit at all if anybody actually mechanically traded it. Of course, it seems to presume a perfect world where there are no commissions, no slippage, and where the S&P futures move sinusoidally. Anybody can take a small-period MA crossover (READ : MACD) and generate an S&P scalping program that will work at least as well if not better than your layout. In fact...didn't a guy named Appel try this a long time ago? And it worked sooooooooooooooo well that it became freely available because it was soooooooooooooooo good nobody could keep it a secret. Until then....think a little bit more about support and resistance, my Flemish friend.
I wonder why people are so negative. I am a discretionary trader but I have been trying to develop systems for a while. I have been able to make few systems that backtest profitably. The whole key to any system is the exists. It seems to me that using macd or a moving average entry is probably as good as any other entry I have ever heard about. Instead of calling B.S. shouldn't we be asking about how the profits a taken with this system. (Isn't this entry as sound as the similar bow tie entry by dave landry, It looks to me that this is just and early entry compared to landry.)
The stop/loss indicator is that one under the MACD HISTOGRAM When the above line is RED (=Short) and when she is Black then =Long. Look at the chart, the first black line there you see the red line is above what means SHORT POSITION, filled at 1491 the stop/loss is 1493. second black line there is the above line BLACK what means LONG POSITION, filled at 1479 the stop/loss is 1476 I use also the EMA18 (the blue line) as support ( when LONG) or resistance (when SHORT) line. Cheers Jeanmichel
jem, i agree with you. Someone posts his trade methodology in detail (probably a first time occurance on ET ever) on a site that's all about trading and what does he get for his effort ....laughter and ridicule. Would you prefer to talk about dual monitor cards, russian girls and catchy new member tiltles? Geeeeeez..... :-(