JimmyJam, I like Trader28 system. It makes sense to me. I've learned alot about the Macd, the SMA8 and the zero line. What I don't like about the system is the zero line flip backs! I was hoping that by adding the Stoch with the Macd we could do away with the flip backs. And adding a trend line or channel line that prices follow up/down makes a lot of sense. In other words tweak our little SPM just a little bit. But what I found is: throwing my computer and software into the river, isn't exactly what I had in mind. And dealing with the intense personalities, isn't exactly what I had in mind. But I am a "nubee" and I started wi th the SPM and with a few tweaks I'll stay with the SPM. What can I say it just makes sense. Thanks snarlyjack
I tried to warn everyone, but all I got was Jack making snide comments towards me, the supposed "judge". I am not the mod for this forum so all I can do is suggest he take it elsewhere. I am not sure why asking to keep a thread on topic is such a problem. Then, when the thread gets off topic, anyone who disagrees with the derailer is told they do not know how to trade and has "chosen not to make money". I am not "judging" his or anyone else's method and I stated this. Its these discussions that make ET, ET. But it has spiraled out of control just as I said it would and should be taken to another thread so that those following the T28 method can do that without interference and those that want to learn from Jack can do so without interruption from simpleton ideas like using a single indicator. Now, good trading to everyone (yes, including Jack.) Snarly: I appreciate your pursuit of knowledge and can tell you have a passion for trading. All of us here have been newbies too. If I can suggest anything in all of this in keeping with the spirit of this thread, you won't be successful until you stop looking for the prefect setup. You will always have false signals to deal with and if there were a perfect combination of indicators that were right 100% without "zero line flip backs" then the person who had it would have all the money. Losses are a part of trading, and anyone who tells you otherwise is trying to sell you something. How you handle losses is what makes or breaks a trader imho.
After all the conversation and back-and-forth, I started working with and reviewing the Simple Method last nite and didn't get to bed until 5am. As a basic concept of trading, regardless of how the individual adds whatever modifications give them a greater comfort level of entering trade successfully, it is a method that works on any indices in which a market is made. In other words, once you work with it and are happy with your results, this is a method that can be used to trade any of the other derivatives besides the financials, and can be implemented quite successfully to trade a basket of securities. Best Regards, JJ
This is a link to the latest chart posted by a JH method student on the main JH trading method thread.... http://www.elitetrader.com/vb/attachment.php?s=&postid=1298350 In terms of the spectrum of simplicity to highly complex, the JH method represents the opposite end of the spectrum from the SPM as originally presented by trader28. Since the theme of this thread is to explore a Simple Profitable Method of trading, I suggest anyone interested in learning and working through the multitude of fine details and subtle nuances of the complete JH method go to that thread and work it out there. To continue this debate/struggle between these two diametrically opposed trading methods does a disservice to both methods.
I agree with your observation with respect to debating two seemingly divergent methods within a single thread causes unneeded confusion. However, The methods as I have described them require nothing more than a monitoring of price and volume - nothing complex at all. As such, while Jack's description of his methodology may appear complex, the fundamentals of the system are not. Unfortunately, that is another debate for another time in another thread. To this end, I have already offered to split off a futures discussion from the current equities discussion beginning January 1, 2007. In an effort to avoid additional confusion, and out of respect to the OP, (and to avoid pushing this thread further off topic) I have no plans to continue the discussion in this venue. Again, I apologize for any posts which appeared to push the thread off topic, and wish you all tremendous success in the coming year. Good Trading to you all. - Spydertrader
Trader666, Now your talking!!! What we really want is a Simple, Very Profitable, Method" that we can all watch and understand. SPM = SVPM Any suggestions??? snarlyjack
It is important not to confuse "Profitable" with "Perfect". Trader28 never made exaggerated claims about the expectations of this method. He did say he has been using it for two years and it is profitable for him. Implied in this is the idea you will have to stick with the method for a while, giving it a chance in different market conditions, and it will be profitable in time. The first thing discovered here is a trend following method, which SPM is, will struggle when there is no trend. I will add here, this method will need good intra-day price volatility. As an intra-day trend following method, the SPM will perform best when daily ranges are average or above average in size. Look at the attached chart of the $VIX, you will note it is making historic lows at this time, as I am sure many of you are already aware. What this means is, the volatility (ie. daily ranges) of the stock indices is at record LOW levels right now. Thus it is no suprise SPM is performing below average right now. When the $VIX gets back up into the middle and upper regions of it's range and daily price ranges expand back to normal or even above normal, I expect the performance of the SPM will significantly improve in response. In trying to improve the method you are actually optimizing or curve fitting it to work in a low volatility environment. Thus you run the risk of reducing or otherwise adversely affecting the the method's future performance when market volatility returns back to a more normal level.