Bingo! I also think that Grob is fabricating complexity where, if he really wanted to selflessly teach others, he would seek to simplify. The best teachers I ever had in school broke down a problem into its simplest components. I was then better able to appreciate both the parts and the whole. In my mind, that is the roadmap to learning. Spydertrader is a trader who uses, and swears by, Grob's method. However, note the difference in Spydertrader's posts and Grob's. I do not follow the method, but I see far more clarity and specificity in Spydertrader's posts. Also, you will note the charts in Spydertrader's posts and threads. They contain a few standard indicators. Although I am not a big fan of most indicators, I recognize that a complete trading strategy encompasses more than just indicators on a chart. However, to suggest 100 pages of typed text to detail a trading strategy boggles the mind. Mine, anyway. Grob likens a trading strategy to a business plan. The parallel only goes so far. I am no stranger to business plans, as I have studied and prepared them in business school at the graduate level, as well as having worked for several years in corporate banking, in lending and account management, where business plans figure prominently. Admittedly, I am not a millionaire trader as Grob reportedly is, but I think Grob is overstating his case beyond recognition.
But simplifying would remove the mystique and subject it to objective evaluation.... in other words guru suicide.
In computer science we have a philosophy of Divide to Conquer. You break the big problem into smallest problems in order to be easily understood and solved.
It is one thing to ignore an opportunity to evaluate the simplicity of Jack's Methods. It is quite another to claim such an opportunity does not exist. - Spydertrader
For some reason this comes to mind: "If one cannot get one's own way, one must adjust to the inevitable. The legend goes that when the founder of Islam was asked to give proofs of his teaching, he ordered Mount Safa to come to him. When the mountain did not comply, Mohammed raised his hands toward heaven and said, 'God is merciful. Had it obeyed my words, it would have fallen on us to our destruction. I will therefore go to the mountain and thank God that he has had mercy on a stiff-necked generation.'
Thanks for your post. I'm glad things are shaping up for you. When I review those I have connected with, I find the spectrum doesn't deal much with IQ or its correlation with success. Some of the recent comments indicate that people enjoy working with Spydertrader and that there are successes. That is very cool and great to hear. Thanks Todd; a lot of people appreciate your efforts.
Use the list of 84 stocks I posted. they all pass the test you are envisioning. All of them pass the test you describe at least 5 times in the last six months. I reattached the list for your convenience. We are completing a camtasia support document (120 pages approximately) on this from a video that was made on the 2nd Thursday of this month. Since you are embarking on using my methods you should pull the lists yourself from stocktables.com. There are three possible combos of EPS and RS at this time. And there are liquidity qualifiers as well. The qualifiers are there to fast track the filtering. Look at the attached list to see the results of liquidity filtering compared to the method you have chosen. I think it is about 100% that you will find that this will not pass your "break under stress" test. That is because nothing I suggest as a concept can pass the test. It is a priori for you to have what I do fail. If you start using the results as an exception, complete the IAS sheets for each chart that you annotate with the channels (IT and ST and traverses of ST where each rocket occurs) that it exibits. These will give your the stats you need for ranking the stocks by their relative money making capability. I recognize these facets are all out of bounds for you since you do not include them. Most people do these things to optimize cash flow as their capital becomes significant. The weekend is a good time to get this stuff under control. By Monday am you should be ready to roll.
You may have a slight screw up on the Stoch settings. The fast Stoch setting is 5, 2,3 or 5,1,3. It is used for entry only. The slow Stoch is used for the "hold". The "exit" signal is when "hold" criteria can no longer be met. The settings for the slow Stoch are 14, 1, 3. i am just adding these thoughts since exits are more important than entries and so far you have left the exit stuff out of your procedures. Most people include exits as a pair with entries to check out things. It is just a common practice. All of this is beginner level. I know, you aren't going to deal with the whole nine yards as yet. Everyone starts as a beginner it turns out.