I don't understand why you found my last post to you offensive. You continue pointing out how well the indicator performs and write, "Thank you Mr. Williams, wherever you are..." You only asked about other people's views in your first post. Most of the remainder of your posts to this thread were spent glorifying the indicator and its "creator," and advising people to use it. All I said was, fine, trade it. If you find that offensive, then I find your response interesting. As an aside, for someone who is "actually preety good at testing theories and indicators," you certainly arrive at your conclusions rather quickly. And, as always, LivermoresGhost weighs in with a few lofty comments of his own. Note the specificity and usability of his advice to you. Be sure to thank him.
Quah's thread describes his use of the stochastic to trade the e-mini and nq's, don't know if he still uses the method. The 146 page thread includes a fairly thorough analysis of the method including the +/- of StopandReverse trades; trading statements in the last 30 pages or so. Quah used a 34-3-21 stoch and 1 and 2 min timeframes. http://www.elitetrader.com/vb/showthread.php?s=&threadid=8734&perpage=6&pagenumber=1 One can also consider using the CCI â 'Woodies System' see: http://www.trading-naked.com/Setups.htm The MetaTrader 4 chart illustrates the Stoch 34-3-3, W% 14, CCI 28, MACD 8-16-5 on DJIA Index 1min. Trading based on indicator signal/s has been well proven to be profitable when the user has learnt the method and employs simple loss limiting rules.
I am sure you are all aware that you can trade the %R signals as trendiness indicators rather than overbought/oversold indicators. In fact when %R breaks through +/- 100% is the exact precise instant of a "breakout". One may as well call it %T for Turtle (the canonical examples of breakout traders). It might amuse you to program up some "trend following" systems for US stock trading, using %R penetrations as the buy sell indicator. When %R says "Jesus Titty this stock is breaking out to new highs", buy. When %R says "Fornicate Me this stock is breaking down near/to/below new lows", exit long. Don't take my word for it. Try it yourself.
Well, maybe your anger was aimed at Williams and not at me. But anyway, the reason I found it offensive, because I said, I am going to test it live today and I did. So you don't have to tell me to trade it, because I just did and have found it statisfactory. I even went to the trouble to post the chart to prove it and show it to those who are interested , and that is the thank you for it. If I wanted backtest it, I could have (and already did) done it on past charts. Today's test was for live trading. Otherwise again, I found it comical, that one can point out excellent things about trading for free, nobody is going to believe it or think about it, unless the person charges $1000 for a course. That is the reason I am not affraid to give away secrets, most likely it won't be noticed anyway...
Well, maybe you want to elaborate on that one.First, the %R doesn't break through 100%, because that is the maximum. Unless I am missing something. Second, today the Dow trended between 10 and 12 and went up 60 points, while the Williams hit 100% 4 times in a row. As a turn back signal the 1st and the 4th worked, the other 2 were so-so, breakeven. So how was it signaling trendiness? I did notice though that when it at min. or max. a few times in a row, than the market is trending, but usually at the 3rd hit it turns back, thus the trendiness is over...
Pekelo, If I got you correctly, you're trying the Williams %R 10 on the YM 5 minute. You're doing this without using any other TA. YM has low volatility and is not that trendy (although the 5 minute is definitely trendier than the daily), so somebody's suggestion on this thread to use it with reversed signals doesn't make much sense. Although your initial results are favorable, I doubt that you got a winner here. Still you might be able to successfully incorporate it in a more complex trading method. Also, you might want to play a little around with the 10 bar parameter (50 minute), and the trigger limits. Good luck!
================= Yes; like some of Larry Williams stuff, even though dont really know him. Pekelo may want to refine the default, like mine defaults to ''10'' & that setting only hits zero 2 times past year; neither time was particularly helpful. Hit nothing in last 60 days intraday, ''10 ''default setting So test refinements. Because ''10 ''default setting isnt even a precise predictor, or even a precise probablity indicator.Nor does a weeks worth of trades necessarily mean much ;it could. Would say yes its more of a leading indicator than precise predictor; & while moving averages work /lag better in a variety of time frames except sideways slop.
Let's take a moment here, shall we? In your last few posts, you were actually telling people to use the indicator. You did not say study it, you said use it. I merely directed the SAME suggestion to YOU. Do you see how that works? Can you see the symmetry? What I find comical is that you think you gave away "excellent secrets for free." You were asking for opinions, and you got them. Perhaps what you were really looking for was praise after spending a few hours backtesting an old indicator over a relatively brief period of time. (Oh, and one or two days of forward testing.)