Everyone has to find their own way. I just posted the "strategy" because JeanMichael was promting readers for some others. It is not a recommendation ... just something for consideration. I wonder if we looked at a statistically valid sampling of intraday $COMPX charts if we would see a reversal at about 30 minutes into most (overs 50%) sessions? I have read that it is higher than that but I don't know it for a fact. And just because it has performed that way for the last 30 years is no guarantee of future performance. Good luck to you!
My theory is that Jeanmichel posted the "system" as a test. Based on your response are you a "real trader" or a "pretender". What do I mean? Try a 4-18 MACD pure crossover system and see what your results are. Try it with a profit target. Try it with a trailing stop. Try to add an oscillator as filter. Trendline as filter. Try it on 1m, 3m, 5m. 30m.... Just don't be too disappointed if you do not much better than break even, before slippage & commissions. Now those of you just performed the above test, you know which group you belong to. No offense intended.
Hi all there is some strange behaviour in this forum section: nobody post own trading method. Too many post to analize Jeanmichael thread. Just test his trading method and you will see that it does'nt work fine. Backtesting no requested in this case: if you try the method you immediately see that is not adeguate to E mini. for me the question is: people posts to kill time or really interested in developing a REAL method ? Have a great gain!
matrix, If I remember correctly Jeanmichel posted his system and said he 'was looking forward to our coomments' - he did not say that he wanted to see other systems. There are other systems discussed on elitetrader, for sure. Just spend some time to look around and you'll find plenty of other trading systems and approaches. dottom, I received some private messages from Jeanmichel last week where he told me that he traded stocks for 13 years and futures for the last 2 (he said it was his 'job', so I am assuming he did it full-time). My response is this: if he managed to survive in the trading game for such a long period of time - there must be something else to his success, other than the trading system he proposed. As we have seen the system works well during trends, but fails during choppy market.
All systems get chopped up sometimes. The key to system trading is multiple noncorrelated systems to flatten out the consolidated equity curve. Otherwise you are searching for the "Holy Grail". In Jeanmichaels defense, even though he never answered my questions, we trade a similar system, not perfect but it grinds out money over the long run.
metooxx, 'multiple noncorrelated systems' sounds like the only way to go. How is your system similar to J-M's?
It was scary how close it was, I never got an answer on the bottom chart he posted about stops, or I missed it when I got too busy to figure it out. We originally set it up as an option screen and it just scratched, however when a system scratches on one market, especially an option trade, it is pretty obvious that you will work out in another market. The problem is what the theorists are saying; it scratches in a choppy market, but so what. Depends on transaction costs.
I agree, one thing J-M did not explain well was the stop-loss situation. How do you determine your exits? Does your system have a predefined minimum profit target (like 2-3 points) or is it based on trailing stop-losses?