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((The following email has been sent to six individuals whose names were
supplied by Steve Karnish. These individuals were contacted by Steve in
advance for permission to participate in the poll. Members of this forum
are encouraged to answer the poll if they also follow mechanical trading
systems))
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I understand Steve Karnish of http://www.cedarcreektrading.com obtained
permission from you to allow me to poll you on the use of mechanical trading
systems.
In short, I have been a skeptic of mechanical trading systems. This is due
to my experiences and from what I have heard from others.
In my many years of market study, I have not come across any individuals who
can claim they have followed mechanical trading systems over a long period
(one to two years minimum) across different market environments and
consistently made money.
For example, is there anyone who has made money by strictly following the
buy/sell signals of a mechanical trading system during the bull of 1999-2000
and thru the bear which started March of 2000 to present?
Steve Karnish believes there are mechanical trading systems that do work and
there are folks that follow these systems and make money. He named you as
one of these people who does follow mechanical system signals.
I am hoping Steve can convince me and others that mechanical systems do
work. I would love to find and use such a system myself. That is the
purpose of this poll.
If you could answer the following questions, it would be greatly
appreciated.
1) How long have you followed the signals of a mechanical trading system?
2) Where do you obtain these trading signals? (i.e. published on a website
or generated thru Metastock or Tradestation)
3) Does the system over this period of time beat the long term market
averages (10-12%/year)?
4) Do you strictly follow each signal or do you sometimes second guess or
fail to follow a signal?
5) What is the largest number of losses in a row?
6) What is the largest drawdown experienced in percentage terms?
I greatly appreciate your time and help. I hope we can all learn from your
responses.
Thank you,
Rick Parsons
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