mark brown said he found the holy grail.

If it is only one page, that means no indicators, and thus it must be something around price action.

 

He wrote a review on the following book:

Day Trading With Short Term Price Patterns and Opening Range Breakout by Toby Crabel

 

i think he used to post on et years ago. you could probably dig up some of his posts.

 

under which id?

 

That's an ancient tome.

No wonder he still thinks TradeStation is owned by Omega Research.

A more "with it" J*ck H3rZhey type???

surf

 

http://www.elitetrader.com/vb/showthread.php?s=&postid=2612637&highlight=oddball+systems#post2612637

 

Looks like a 2 MA system similar to what jjrvat talked about here. Exept jjrvat said trade when both are in the same direction (well, jjrvat was vague with entry and exit rules. IIRC ironfist extrapolated those rules from jjrvat's posts). This guy says trade when both are in the same direction and stay in the trade until they both change, not just when one changes.

That sounds like, from the first entry, that it would be an "always in" system.

Think about it:

Begin:

Slow line is blue, fast line is red. No trade.

Slow line is still blue, fast line becomes blue. Go long.

Slow line is still blue, fast line becomes red. According to the rules set out above, you stay long.

From this point, only two things can happen:

1) The fast line turns blue again = stay long
2) the slow line turns red = go short (because the fast line is also red)

Therefore, after the first entry, this sytem becomes a "trade in the direction of the slow MA's slope" system.

And MA-following systems are not profitable in the long term no matter what period of MA is used.

I guess that's why he said "close" to the holy grail.

Also, notice he has a picture of a monitor showing his "trading system" on his webpage. Not even a screenshot; it's a photograph

And I'm sure his system works well during a huge downtrend like the one shown in his photograph.

 

look up my dialog with this clown.

 

link it here, 777

 

And MA-following systems are not profitable in the long term no matter what period of MA is used.

I don't think that is true at all. I've tested a variety of moving averages with some major stock indices and over the long term most work. At least by comparison of risk adjusted returns to buy and hold, but it is most certainly not the holy grail.

Regarding the original link, I thought it was interesting that it said how their 'holy grail' was unexpected. In testing automated end of day strategies I have also found surprising results and successful strategies that are very contrary to popular trading advice.