Trading with price action

Discussion in 'Strategy Building' started by inandlong, Feb 14, 2003.

  1. dbphoenix


    Trade them in public in realtime, providing enough information about the system so that onlookers know whether the trader is actually following a system or trading SOMP.

    This has nothing to do with inandlong. Lots of claims are made here and an amazing number of people are quick to believe them, which says something about the gullibility of traders. I don't believe any of it since it makes no difference to my bottom line whether Trader X or Trader Y made or lost whatever last year or yesterday or whenever, though I'd pay a lot more attention to the insights of someone who's demonstrably successful.

    #121     Mar 30, 2003
  2. very reasonable solution db. do you hear this inandlong & others?? are you game? why not?
    #122     Mar 30, 2003
  3. dbphoenix


    I don't know that I'd call it a "solution" as I see no problem, unless one believes all the claims. But that really isn't the problem of the person making the claims.

    The "solution" is to ignore the claims, or at least take them with a large grain of salt.

    Find somebody who's willing to post his system, then track the system to see if it performs. Claims, therefore, become unnecessary.

    #123     Mar 30, 2003
  4. doctoroe


    That's the funniest thing I've read all weekend. And so it goes..

    #124     Mar 30, 2003
  5. Coincidently I posted this on another thread just yesterday I think. Last year was fairly nice... after the whole thing I had made 130K. But 45K of that happened on two positions, which some of the guys around are sick of looking at the charts for GM and EXPE. :) However they were classic combinations of MACD divergence combined with a major moving average cross. Usually though I manage about 80-100K on a 50K account.

    I don't think I have ever posted a stock pick or specific recommendation of any kind and never intend to. The reason is very simple... I don't want whatever real or perceived added pressure to perform there might be. I trade for a living, not to entertain people. And like every one of you, I must deal with the psychological aspects too. The last thing I want is to be involved in some challenge where people are "virtually" looking over my shoulder watching me trade. Thanks... but no thanks.

    doctoroe... about the "serious naivete" thing you had going there. Perhaps you shouldn't presume that you know what I mean with my signature, 'you must be in to win.' Because clearly you don't.

    Most of the folks here.... who have been here longer than a month and/or have more than 8 contributions, know that I like to trend trade, and that I prefer to enter a new trade when the price crosses the 40 ma. Simple enough for you so far? And many of the folks here also know that if the next day the price closes on the other side of the 40, I will reverse. Why? Because I don't absolutely know that the price is not going to continue. But I DO know that price is going to deviate from the mean as represented by the 40.

    Now pay attention because here is where the sig comes in. If I get in on the first entry and don't reverse if required, and the price continues to run in that direction, I have done nothing but take the loss and missed the gain. So for me, when the 40 is in play, I must be in to win.

    Thanks however, for taking time to share your thoughts with me even though they were way off base. Although, I will consider you a valuable resource when I finally make it to the level where I am ready to know about "how the market works."

    comprende amigo?
    #125     Mar 31, 2003
  6. There are various trading styles. All of them can work if applied consistently and if followed in a disciplined way. I see no contradiction in what inandlong says. For two months I have been testing an ES intraday trading system that is purely mechanical and is always in, although you may choose to use it only in the morning and in the afternoon so as to avoid the midday trades that give rise to lots of whipsaws. Anyway, using 2 ES contracts you could have made ca $5,000 in February and about $8,000 in March (in the version that takes no trades during the midday period). Sounds pretty good to me particularly that the system is very simple and is based on the price action only. I have no more statistics yet, but if I find it to be profitable also in April, I will start trading it. I don't think that the results in February and March are to be attributed to some lucky statistical deviation. That would be pretty unlikely.
    #126     Mar 31, 2003
  7. Well, Wally...i guess your are not going to share such a robust syatem with us.

    Michael B.:D
    #127     Mar 31, 2003
  8. Indeed, I am not in a particular rush to do so. Today the system scored 6, -2.5, 6, 3.25, trading 9:30-11:30 and 14:30-16:15. Not bad at all, over $1200 for two ES contracts. The all session version would score 5 pts less because of midday wipsaws. Still not bad. I need to do more testing though and perhaps I will offer the system signals to the public without however revealing the system. If I reveal the system even to a few chosen I have no way to control its distribution, so if I ever share it with others, it will most likely be via some subscription to the system calls rather than anything else. But I don't know if that's worth my time. I have promised to reveal some other systems of mine before and still have not found time to do so, so I will have to see how things will work out.
    #128     Mar 31, 2003