|
PureBytes Links
Trading Reference Links
|
Hi Brian,
>>I don't consider BB as 'PriceAction' trading but that could be a
personal definition.<<
I don't either that's why I said "Bollinger Bands and sound Price Action".
>>I didn't see anything in Teresa's methods that I would consider to
be 'scalping'.<<
I know there is no universally agreed upon definition of scalping but
in common usage it can mean anything from 1 or 2 ticks to 20 ticks or
more. Her 1st profit target is 4 ticks which I consider a scalp.
>>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 don't share your distain for scaling. I find it to be a very
valuable risk management tool. My thinking on this has been greatly
influenced by Joe Ross. In his book "Trading is a Business" (at 15-20
years old it is a bit dated but the principles are still valid), he
recommends trading multiple contracts and taking 1st profit as soon as
you can cover commission cost plus a small profit and move stop on
balance to BE. He is a price action trader and if you are interested
in knowing more about his trading style, some of his free articles are
here:
http://www.trading-naked.com/Articles_and_Reprints.htm
>>I am a big believer in simplicity - when the chips are down our
psychological makeup demands it.<<
I agree and I think Teresa's method is simple, I can see the setups on
a chart with little more than a glance.
Whether or not a trading technique appeals to you or not depends on
your temperament. With good money management and good trade
management, a good trader can make almost any entry method work.
Bill
--- In amibroker@xxxxxxxxxxxxxxx, "brian_z111" <brian_z111@xxx> wrote:
>
> 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@> 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
> > > >
> > >
> >
>
------------------------------------
Please note that this group is for discussion between users only.
To get support from AmiBroker please send an e-mail directly to
SUPPORT {at} amibroker.com
For NEW RELEASE ANNOUNCEMENTS and other news always check DEVLOG:
http://www.amibroker.com/devlog/
For other support material please check also:
http://www.amibroker.com/support.html
Yahoo! Groups Links
<*> To visit your group on the web, go to:
http://groups.yahoo.com/group/amibroker/
<*> Your email settings:
Individual Email | Traditional
<*> To change settings online go to:
http://groups.yahoo.com/group/amibroker/join
(Yahoo! ID required)
<*> To change settings via email:
mailto:amibroker-digest@xxxxxxxxxxxxxxx
mailto:amibroker-fullfeatured@xxxxxxxxxxxxxxx
<*> To unsubscribe from this group, send an email to:
amibroker-unsubscribe@xxxxxxxxxxxxxxx
<*> Your use of Yahoo! Groups is subject to:
http://docs.yahoo.com/info/terms/
|