Utility of Approach - Guidance

Discussion in 'Risk Management' started by btowntrader54, Aug 14, 2008.

  1. I've put together a set of two indicators that when used jointly since Jan08 thru Jul08 has provided a fairly significant return. I'd like some input on whether it makes sense from a risk/reward standpoint for
    A-a portfolio manager w/AUM of less than $5mm and
    B-a daytrader/person who only trades for their personal account.

    *AUM = $1mm (100%)
    *Each 'Hit' is allocated 5% of AUM ($50k)
    *Intraday only so overnight risk is nonexistent
    *Approximate hits/day of less than 4, max is 20

    Attached is my backtest with the projected returns for the past six months (excl. August). Please PM or list any useful information.
  2. A backtest and 5 dollars will get you a cup of coffee...
  3. How about some constructive guidance? Where do I go from here to get beyond my "cup of coffee"?
  4. Stop trying to string together indicators and stop depending on backtests. They rarely walk going forward.

    If you want to trade profitably, you have to decide whether you are willing to put in the screen time to learn how markets work and move. it is called "Price Action"

    If you bury yourself in technical analysis and indicators, you will only delay starting to learn profitable trading.

    as to how to do that, there is no free lunch or manual that makes it happen.
  5. TraderZones,

    There are so few productive threads on this site because of that type of assumption-based, opinion-laden, non-constructive comment.

    I am not a day trader. I'm not looking to trade this myself. I have a job, I developed this set of indicators, and I'd like to find out from helpful people if this is the sort of thing others, namely day traders or independent traders, would seek to use to their benefit. Please don't bother responding. I'm unsubscribing from this thread because it is going nowhere.
  6. On the contrary, technical analysis and indicators are the focus of a huge amount of belief and opinion. When studied, they tend to fall apart.

    Hopefully, in a year or so, you will understand, after tech indicators have eaten up a lot of your time, hope and money.

    It is a shame you are running away from an opportunity to see what works for traders. Why do you think so many people here counsel new traders to learn price action, and not get sucked into Jack Hershey and lot of other useless drivel?