ET knows me primarily as a developer of neo-ante-post-modernist trading indicators. As such I have the disctinction of revealing more new indicators to ET in the past few years than any other serious poster here. Less well known is that I am a private developer of trading systems for handecapitated traders (see my systems for trading blind and trading without a brain, among others). In this regard also I have given ET more new systems than any other poster, if you ignore the frequent revisions Jack Hershey has made to SCT in response to criticism. Continuing in this spirit of sharing with the community, I will demonstrate step-by-step (and inch-by-inch) how to develop a speciously plausible trading system from scratch. It is my aspiration to be an inspiration to charlatinous promoters everywhere. Along the way, perhaps ET will recognize itself, learn something about flatu-fraudulent gurus, and perhaps even pick up a trading trick or two. I invite all system developers on ET to kibbitz or kibbutz at their pleasure.
Thank you, Maestoso! You have been a role model for me over the years. Your reinvention of yourself has been an inspiration to me. And I know that I shall never even begin to approach your facility as an inventor of new ways to look at the market. To this day I wake up at night in a cold sweat trying to fathom some of your systems. Feel free to pitch in.
I am presently working on a system that requires no planning or programming, no understanding and no monitoring. I call it the Glorious Wealth Builder (GWB), however, people keep mistaking it for something else.
Guess what, I have built all of my systems learning from the traders who "GOT IT". If a trader has a good common sense, sharp intuition and a lot of experience he is GOLD for any expert system developer.
A system is only as good as its chart. And if we are going to break the bonds of the hoary past, we must chart anew. The first decision is deciding whether or not to chart price. There are those who say that volume leads price, implying that all we need to do to forecast price is to crayola volume. Call me old-fashioned, but I still chart price. That decided, we must chose the method of representing the bar. I myself would chart ticks and compress them so that I wouldn't need bars, except after trading hours, but no charting service that I have ever seen obliges with such high time scale compression. My choice therefore is to chart with candlesticks, largely so I do not have to be constantly searching with rheumy old eyes for those tiny tick marks that represent open and close in conventional bars. That said, we must select candlestick colors. IMO green and red for up and down are misrepresentional. Why should up be good and down bad? In all trading system development choices I favor association. Hence I use umber for up and drab for down for the candle body. And umber for the down tail, representative of up tendency, and drab for the up tail, representative of down tendency, as all know (see my Undicators "Tailatility" and "Volataility" for proof). Attached is the result.
If they "got it", where did they "catch it"? Thanks to you both for your support. I look forward to the revelation of GWB.
Next we must decide if we want to chart volume. I personally think that it is nearly useless, but ET is so thoroughly conditioned to believe otherwise that not to chart volume would detract from my already threadbare credibility. Thus we only need decide on the colors of volume. I mean, if quantum particles can have color, why not volume? It makes equal sense IMO. I choose to color volume to match the bar. No matter that up volume isn't always, this is ET and that is too subtle a distinction. Plus, that adds to the illusion that volume is meaningful. Soon the mind becomes accustomed to thinking that drab volume should be shorted. Attached is the result. The community is encouraged at this point to share their own preferences for charting.
My Glorious Wealth Builder (GWB) system is really quite simple and requires only a 2-step process. First, it is essential to dismiss all testable ideas and replace them with long-held beliefs of dubious origin. Having set the stage, the next step is to operate in a vacuum. No external inputs should be allowed, as they could only serve to corrupt the aforementioned beliefs. Actual information should be viewed with distrust as being potentially subversive. I would like to lay claim to the origin of this system, but I actually appropriated it from a visionary who operates in another discipline.