Larry Pesavento Method

Discussion in 'Strategy Development' started by MACD, Mar 22, 2005.

  1. MACD

    MACD

    Do you trade with using Larry's system of trading? Would you like to start to communicate with other traders using this system?
    What is your personal experience using the Pesavento Patterns? Are you a profitable trader? What Markets and timeframes are you trading?

    Wanna share ideas and profitably trade markets using a proven method that you may obtain without charge from a book by Larry?

    Is there any interest in this?


    Thanks for your input...
     
  2. i took interest in his methods in the past. you can review some of his material at www.tradingtutor.com , his website. some free newsletters etc.

    i was tracking his calls for awhile and i have to say that he is almost the best contrary indicator out there. he is almost always dead wrong. the consistency of his failed predictions is simply stunning.

    before you get all excited about his "sophisticated" methods, try to see his results. your excitement will die very quickly.

    all the best
    50
     
  3. Just one man's opinion. Your post is ironic. What I mean is that you have asked about a strategy or approach to the market (Pesavento's) that is not very productive. Also your handle is the name of one of the most effective indicators that you could use to trade. If you want to investigate a productive approach, try googling the name "Tom Bierovic. Mr. Bierovic has trained a slew of institutional traders, and his books are reasonably easy to read. Here is one reference to get you on the road:

    http://www.futurespartners.com/articles/traders/bierovic.html

    I have no connection to the site, nor do have any connection with Mr. Bierovic. I simply like the guy's approach. don't stop here but google around on "Bierovic" and "MACD". you will find plenty of references and information for your study.

    Good luck,
    Lefty
     
  4. I would say that LP's patterns do well in sideways markets, which staistically happen more than 70% of the time. However, they tend to get hurt in trending markets like the second half of 2003. MACD, I am definitely interested in hearing your (or anybody else's for that matter) experience with LP's approach.
     
  5. once again, a friend of mine subscribed to his weekly newsletter, from the end of 2003 to the end of 2004. he forwarded me his newsletter every week.

    he has a good psychological mindset and writes good (although extremely basic and short) articles related to trading psychology. i think he even recently released a new book about it.

    as far as his market analysis skills, he uses extremely complicated methods that rely a lot on astronomical aspects.
    does it make sense to rely on these things? i am not judging.

    what i do judge is his performance. about 1% hit rate. he shouts bear basically since august 2003. needless to say we had a few bullish thrusts since then. every week that passed (remember i read his weekly newsletter) he came up with a slew of new reasons why this week the bear will crush us. some reasons related to the charts and some to the alignment of the stars in the sky above. another week passed, another rally, and again pesavento comes up with a slew of reasons why THIS week will be the crush. another week passed, another rally, and again..... and so on. he just doesn't let go. in his newsletter on oct 17, 2003 he wrote, and i quote:

    "Someone asked me what it would take to make me turn bullish on stocks as this level. I replied, "a lobotomy" and I was not trying to be funny!"

    Very shortly after the markets were up a record 9 weeks in a row.

    i too believe that the bear should come eventually. even soon. but, what about TIMING, mr. pesavento. at least he's consistent. when the bear comes, he will shout "look how right i was". he will neglect to say "i was shouting it since august 2003, and the market had several robust rallies since then, visible on every time frame".

    every week he makes stocks picks. once again 1% hit rate. you can check his website for his past calls.

    and the best of all: "the bradley model". some elaborate model that he claims that can predict the market tens of years in advance (YES, HE CLAIMS THAT). the model, in reality, doesn't correlate to the market. yet when the market rallies and the model forecasts a decline, larry says "the model was temporarily inverted". I AM NOT KIDDING. i still have his newsletters for proof.
     
  6. With all respect, 50cents, I don't think the purpose of this thread is to discuss LP's abilities as a trader or prognosticator. I have already stated that (IMO) the profitability of his patterns degrade in trending markets.

    No method is perfect ... Those of us who know this are not looking for the holy grail, but just wish to discuss a method we are familiar with... including its strengths, weaknesses, applications, modifications etc. Repeatedly castigating Mr Pesavento, IMHO adds no value to this thread.

    MACD, I hope you have not been discouraged from posting your thoughts.
     
  7. unbelievable.

    ok let's discuss the methods' weakness: it has almost a zero hit rate! i.e. it simply does not work, period!

    but don't worry i will not continue to participate in this thread.

    keep having sweet dreams

    50
     
  8. thanks for your kind consideration.
     
  9. Someone did an article in Active Trader about a year ago testing the Gartley patterns with mediocre results. Of course, all the geometry guys were in a furor over the article. What do you mean, my fancy butterflies don't work?!
     
  10. have you got a link?

    thanks.
     
    #10     Apr 28, 2005