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Gary,
Interesting mail!
Can you give us more details about the PAMA formulas and calculations?
Thanks!
Onno
At 09:10 31-8-98 -0400, you wrote:
>Larry,
>
>The method applies to stocks and futures charted daily with positions held
>overnight. The author doesn't mention using it for day trading. Trades
>are placed near the close for the day.
>
>I guess I'd call it a swing technique, in that it identifies certain
>patterns in up or down channels, then buys or sells on a target day if it's
>still in the channel. It does seem to catch the pullbacks nicely. There
>are about 7 different patterns based on support and resistance and where
>you are in a trend. Determining the pivotal areas is unique and
>straightforward, with the only parameter being the channel width which is
>based on history. A typical setup for a trade takes at least six days.
>The author claims 70% profitable trades. My initial study indicates that's
>about right, but I find his stoploss settings give back a lot of profit and
>allow for substantial risk in sideways markets.
>
>It is not subjective, although I found a few samples that beg the question.
>The author uses a charting method to determine the trades. I want to test
>it over a number of securities so I'm putting it into Excel. The book
>doesn't discuss automating the system, but it is based on fixed rules.
>It does require some study to understand, but the book is well written.
>Not at all like the Taylor Trading Method.
>
>Gary Randall - Brunswick, Maine
>
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