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Hi Harvey,
I agree that any trend following system can whippsawed.. but the way I use
trend rider is to give me the idea where I stand in the market.. upon
knowing that .. I have patterns that I trade.. these patterns repeat
themselves over and over.[but each are a random event and there is no
gurantee when I put on a trade then pattern will work.. but over time ..
and ifI am consistant .. then that is my edge..and I will and do succeed.
Your are mistaken that just because I have a change in wave.. Trends are
made up of waves.. in uptrends you have upwaves and downwaves.. I only look
to trade upwaves in uptrends and sell downwaves in downtrends.. I take
that as the only signal for a trade..In order to advance .. one must look
for low risk trades.. recognize them.. feel good about them.. and execute..
that is it.. Trend Rider isn't magic.. it simply just gives a trader an
idea where they are located in the trend .. I hope this helps more... There
are no magic indicators or systems... it is just a numbers game.. with
probabilities.. and we as traders ... have to be carefull we don't make
mistakes that aren't part of our game plan..
Andy Abraham cta
Trend Rider
Angus Jackson
At 01:00 PM 9/10/98 -0700, you wrote:
>David/
>
>With regard to this particular indicator, it flips back and forth
>between uptrend and downtrend. This is fine as long as there is a
>steady trend; used as an exit signal it will get you out before you give
>up too much. However when prices go sideways the flips will occur at
>short intervals. Anyone using the indicator for entry and exit signals
>would be continually buying and selling and losing more than they make.
>These trades are called whipsaws. Given enough of them and you may well
>suffer whiplash.
>
>Most systems are trend-following. Prices spend only a part of their
>time in trends of any duration. Therefore trend-following systems
>attempt to enter as soon as possible after the trend begins and exit as
>soon as possible after it ends, and to stay out of the market while
>things are flat. How to achieve that is what we're all trying to find
>out, since the market has endless variations.
>
>Harvey Pearce, Victoria, B.C., Canada
>=====================================
>
>
>
>David Duggan wrote:
>>
>> I am a trend trader and I am interested to know what happens to these
formulas
>> when the underlying equity enters a trading range.
>>
>> Would you get whiplash?
>>
>> It has been my experience the more sensitive a system is to "potential
breakouts"
>> the more false signals are generated.
>>
>> I haven't programmed everything on this thread related to this subject
yet but I
>> have started.
>>
>> David Duggan
>>
>
>
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