It doesn't really matter whether it works for him or for anybody else. Those who can't stand discretionary strategies or tactics will hate it. Those who can't stand anything that can't be backtested will hate it. Those who can't stand anything simple because of their investment in software will hate it. Those who insist on knowing every logical detail of WHY will hate it. What Quah's system does is a. focus attention on what is generally the most volatile and the busiest time of the day b. force the trader to make a decision rather than futz around with 27 indicators and 12 charts c. force the trader to address price movement as is and take his losses and profits at certain points rather than get sucked into the mire of hope and fear d. forget about setups and indicators and news and feelings and sentiment and many other sorts of nonsense, trading what one sees and not what one thinks Given that, there are many variations that one could come up with and still meet these principles. And if some of them can't be backtested, so what? --Db
ENOUGH ALREADY! Quah has given you perhaps the most valuable system/method for short-term scalping I have ever seen. Is it the Holy Grail? No. It is nothing more than a goose that lays golden eggs. Take your backtesting and shove it where the sun don't shine. As for the doubting, intellectualizing, and debating, you can shove that as well. Accept it, and trade it - or move on. (Quah, for the life of me I don't understand why you put up with it.)
This - short-term scalping - probably has to be re-emphasized. A trend-following system is not likely to be very successful also as a short-term scalping system. In a trend-following system, one is much more likely to be concerned with managing the trade rather than multiple entry/exit tactics. He has time to look for pattern and to anticipate moves and counter-moves and traps. He has time to "feel" the dynamic. When scalping, there's no time for any of this. One can't give price "room". One can't wait to "see what develops". One can't consult and study and ponder and formulate. Even if he reaches breakeven on something, he cannot wait for the trend he's hoping for to "unfold". Rather he sits and watches price come right back to his breakeven point. And by the end of the day, he winds up with zip. The market may begin trending again next week. And this particular system may end up being useless in a trending market. But so what? Everybody already knows what to do in a trending market. But finding money-making strategies and tactics for a congested market is an open field. --Db
I think Quah's system deserves a more elegant name than Quah's Fib System. My first two entries in the Name This System Contest are: 1. The Quahlude 2. Sine Quah Non Any other ideas?
Thanks for clarifying that. Lemme correct my statement by adding that a lot of the guesswork is already done. I use the stohs subjectively for my trade objective depending on what I've got going (reversal or pause in a longer term strategy etc, both tradable depending on the time frame- good for both entries and exits for my modified use). On its own, it simply provides quite a clear cut read of what's going on, especially if you use the "rolling stoh" concept of mini trend following; hence I dispensed with the time element. Have only benefited from your contribution.
Sorry if this is a brief diversion, but my software (GlobeTek) only lets me input two #s in the stochastic (%K, %D) I keep hearing about three variables on this thread...any help please would be appreciated.
imo, if this system is not backtested EXACTLY as quah trades it, the backtesting isn't really worth much.
3. non-se-quah-tur 4. quah-powsa! hehe sorry couldn't help but take a stab at waxie! PS. to the naysayers -- it's hard to argue with net profit. you guys go ahead and keep bickering, while others rake in the profits. if/when the system stops making money i'm sure he will abandon it. edit: 5. quid pro quah