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Bill,
I am all for people following their rainbow go for it.
Some contrary opinions, with the intent encouraging some thought
around the subjects:
> The method is based on Bollinger Bands and sound Price Action
>techniques.
>
I don't consider BB as 'PriceAction' trading but that could be a
personal definition.
> The author uses a scaling out trade management style which combines
> the low risk/high win percentage of scalping with larger profit
> potential of swing trading
I didn't see anything in Teresa's methods that I would consider to
be 'scalping'.
I don't have any use for 'scaling' in or out, simply because I
believe it serves to confuse us by turning one trade into two or more
trades (what is wrong with either of the trades - can't they stand up
on their own?).
I am a big believer in simplicity - when the chips are down our
psychological makeup demands it.
> Based on my examination of various charts from 5 mins to weekly, the
> technique seems sound with profits about 75% of the time.
I have tested 2, or more, of the components involved in this system
and spent a deal of time mulling over this time of thing and I don't
think they work - I no longer test systems like this - based on past
experience I make a discretionary decision to pass them by.
> As far as the authors commercial website goes, I have no interest in
> it and I believe most members of this group have no interest in it.
> Just because someone is a trading educator does not mean they cannot
> trade but even if the author is the worst trader in the world, that
> does not mean this method does not produce profits. You have to
judge
> the method on its own merits not based on who is describing it.
Money isn't a four letter word - we need good businesses and good
business people - they are a pleasure to deal with and make the world
a better place.
It is a fallacy that successful traders will never teach (why do they
need to sell it).
IMO they will seldom teach for various reasons but sometimes there
are reasons why they do (some of them are good reasons) e.g.
- they value fame as much, or more than fortune
- they like to share and help others
- they want a second income stream
- they get bored with trading (I myself am a little tired of having
my bum in an office chair and I am cutting back on non-essential
computer/internet time) - after x years of successful trading they
might have had enough and turn their hand to another facet of the
game etc
It is rare but it does happen e.g. there is an Aussie educator, who
claims to be a successful future trader who teaches 10 students at a
time for 10K a year.
His story is that one day his wife came home in the late afternoon
and he was trading and still in his pajamas - he realized that he was
a person who needed social contact, as well as a successful trading
career and he sought out an association with a training company.
It is conceivable that this could be a true story.
The reality of trading doesn't match the fantasy and some people who
make it are just not cut out for the social isolation.
The other side of the coin is that the msjority of people who set out
to become pro traders do not make it.
The vast majority of trading touts either didn't make it or didn't
even try to make it in the first place.
brian_z
--- In amibroker@xxxxxxxxxxxxxxx, "bilbo0211" <wjdandreta@xxx> wrote:
>
> Hi scourt2000,
>
> I don't disagree with most of what you said but I think you are
> misrepresenting the described trading technique.
>
> The method is based on Bollinger Bands and sound Price Action
techniques.
>
> The stop is not a fixed amount, it is placed 1 tick beyond the
> opposite extreme of the entry bar, a standard Price Action
technique.
>
> There are 3 sample trades discussed.
>
> 1st: initial stop size 1.5, 1/2 off at 1.0 pts, other half off at
3.25
> pts, total for trade = 4.25 pts.
>
> 2nd: initial stop size 1.75, 1/2 off at 1.0 pts, other half off at
BE,
> total for trade = 1.0 pts.
>
> 3rd: initial stop size 1.5, 1/2 off at 1.0 pts, other half off at
3.0
> pts, total for trade = 4.0 pts.
>
> This is not in agreement with your comments about the method.
>
> The author uses a scaling out trade management style which combines
> the low risk/high win percentage of scalping with larger profit
> potential of swing trading.
>
> Based on my examination of various charts from 5 mins to weekly, the
> technique seems sound with profits about 75% of the time.
>
> I would not have made this post if I thought the system did not have
> potential. Everything must be thoroughly tested before trading with
> real money (including simulation trading). Anything else it just
gambling.
>
> As far as the authors commercial website goes, I have no interest in
> it and I believe most members of this group have no interest in it.
> Just because someone is a trading educator does not mean they cannot
> trade but even if the author is the worst trader in the world, that
> does not mean this method does not produce profits. You have to
judge
> the method on its own merits not based on who is describing it.
>
> Bill
>
> --- In amibroker@xxxxxxxxxxxxxxx, "scourt2000" <stevehite@> wrote:
> >
> >
> > If you follow the link to its conclusion and find the original
author's
> > website, take a look at her trading stats this week on the ES.
She's
> > got 7 years futures trading experience and she's taking 2 pt stop
> > losses and half-offs at 1 pt? That's not good.
> >
> > With a good edge, you can expect to daytrade the ES with no more
than a
> > 1.50 pt stop loss, a 1.5 to 2.0 payoff ratio and a long-term
winning
> > pct. average of 60%.
> >
> > Please, don't ever try and trade the ES with a payoff ratio of
0.50
> > unless you can sustain a 70% to 80% long-term winning pct because
a
> > more reasonable 60% winning pct with a 1.5 payoff ratio will make
more
> > gains than a 70%-er with a 0.50 payoff ratio with far less stress
> > involved.
> >
> > Try all the backtesting on ideas you like and you'll see a
general
> > trend in the good edges:
> >
> > 1. High winning pcts. come with < 1.0 payoff ratios.
> > 2. High payoff ratios come with low winning pcts.
> > 3. Systems in the 50-65% winning pct. window come with 1.5 to 2.0
> > payoff ratios.
> >
> > And, by the way, I'm speaking to the 2-3 ES contract and 1-2 ER2
> > contract traders out there trying to make a living at this, not
any of
> > you who consider yourself big fishes where you play games with
> > unreasonable stop losses and averaging down in your positions.
> >
> > Just be careful of people freely giving you an edge and then
turns
> > around and has a website-for-profit to "teach" you how to be
a "market
> > winner". Because I take one look at her money management,
knowing
> > full well what's doable on daytrading the ES/ER2 for 5 years, and
it
> > becomes obvious why she's got a secondary service to teach.
> >
> > Realistically, it takes anywhere from 2 to 4 years to get good
> > (definition: you make a living just with your trading) at futures
> > trading, depending upon how messed up your emotional insides were
when
> > you started. Most drop out within 2 years due to bad money
management
> > and continually trading with bad edges because they believed too
much
> > in some other person trying to sell them on their methods instead
of
> > believing in themselves and learning to trust their own
experiences
> > over what anyone else had to say.
> >
> > [I'm not into back-and-forths when I speak from the heart like
this. I
> > could be wrong, but after 5 years of facing the ES and ER2 in
real-
> > time, discretionary daytrading, I highly doubt it.]
> >
> > --- In amibroker@xxxxxxxxxxxxxxx, "bilbo0211" <wjdandreta@> wrote:
> > >
> > >
> >
http://www.tradingmarkets.com/.site/eminis/commentary/favorite_strateg
y/
> > Eminis-Teresa-Appleton.cfm
> > >
> > > I have not back tested it but checked it on a variety of charts
and it
> > > seems to work quite well to get at least a scalp. In a strong
trend it
> > > generates very few signals but intraday strong trends that last
all
> > > day are rare.
> > >
> > > If I get time, I will back test it and post the results.
> > >
> > > Bill
> > >
> >
>
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