While I have no evidence to dispute your claim of "Half dozen emails attacking [you] for questioning the method" The responses to you in the Journal itself certainly do not appear to be 'attacking' you in any way. One can locate my own response to you here. In addition to my response, the other responses to you (including one from an ET moderator) appear to be anything but an attack. At any rate, I apologize for any emails you did receive 'attacking you' for your input. Providing input in the spirit of 'iterative refinement' is exactly what both Journals attempted to accomplish. Attack emails, especially sent to someone attempting to provide positive contributions, have no place in my Journals. Good Trading to you. - Spydertrader
I did not compound the daily returns because of the obviously nonsensical result - growing your equity by ~ 20000x!! I assumed the trader ran at a constant equity. Glad to hear you have a proportion of disbelief regarding these returns.
Sorry to be dense, but could you more fully explain why left and right are more clear than upper and lower when referring to channel lines ?
there is quite a bit of difference, I think. The right trendline can be either an upper or lower if I have it straight. The right trendline is always with the trend, right? p.s. The right trendline is the one you would draw if you were drawing a single trendline.
It's not about being dense, it's about not being familiar with the material. The answer has to do with defining channels in a mechanical way. Jack teaches "finding points 1, 2 and 3" and from this two points define a trend line and the third point defines the opposiste side of the channel which is a parrallal. He also teaches "traverses" which is the trip price makes from one side of the channel to the other. Now, if you are attempting to communicate with another trader about these traverses it gets very confusing if you're talking about "upper" and "lower" channel lines, especially if you haven't spelled out whether you're looking at an uptrend or downtrend. If instead, a trader refers to "left" and "right", it's absolutely clear what is meant by a "right to left traverse", regardless of whether you're in an uptrend or downtrend. When I first heard this I was baffled. I kept reading it over and over and it made no sense whatsoever. Then, I recalled the trick taught to every new algebra student, when you have a word problem draw a picture. I suggest you do likewise. It instantly becomes clear. It may be non-standard languuage, but once you learn the concept it's easy to appreciate the elegance and simplicity it represents.
Buy if the price will rise. Sell if the price will drop. Take note that it is irrelevant what the price did recently, unless you have identified something in that information which will tell you what the price will do in the future. Trend followers often believe that recent market action dictates the direction for the future. Others believe that the opposite of recent market action dictates the direction for the future. Both strategies can be wrong or right. Ultimately what matters is the direction in the future. If you have a system that can give you this information, then you have a chance at success. You will still need to optimize this chance of success with money mangement practices to give yourself a better probability of avoiding an account blowout or stagnation. -Raystonn
7 The more important the situation is, the more probably you forget an essential thing that you remembered a moment ago Finnish original: Mitä tärkeämmästä tilanteesta on kysymys, sitä todennäköisemmin unohdat olennaisen asian. jonka muistit hetki sitten. Similarly to law 6, this illustrates one of the causes of failures in communication. It applies both to senders and recipients. The recipient tends to forget relevant things, such as items which have been emphatically presented in the message as necessary requirements for understanding the rest of it. And the sender, upon receiving a request for clarification, such as a question during a lecture, will certainly be able to formulate an adequate, easy to understand answer - afterwards, when the situation is over.