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[Metastockusers] How to Build a Trading System without Lace



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For those of you who can't read my posts because of my caustic wit 
and dry sense of humor, not to mention insulting all groups 
simultaneously, here is a step by step guide to building your own 
trading system. (I am removing the pearls from the pig pen so that 
more people may enjoy them as jewelry! However, there is an art to 
simultaneously insulting so many with so few words. I do not intend 
to bury that skill.)

Let's us begin.......

Read all the articles under Trading as a Business

http://www.elitetrader.com/tr/index.cfm?s=17

The articles will teach you step by step how to build a trading 
system. 

John Clayburg's book Four Steps to Trading Success will show you how 
to setup a simple indicator system that is among the best there is. 
It will serve as your basic trading system. It works on all stocks, 
in any time frame and has no curve fit. Then you add your favorite 
filters to it. 

In Roy's newsletter he is building one of the best filtering systems 
there is. It's a great newsletter for teaching MS coding and systems 
building. It's only $99 a year.

www.metastocktips.co.nz

That should be most of what you need to get started and keep you from 
getting too far off course. Oh, I would also add a 20 bar SMA to the 
chart because price often regresses to the 20 bar SMA.

If you absolutely feel the need to have red and green arrows that 
scream buy me now, you can use a program like ICE, or the simple 
systems from Performance Systems Plus. Just remember, any "expert" 
system is going to generate a lot of false signals, so your other 
basic buy sell indicators like the Clayburg's and Roy's filtering 
technique Rule. (Especially Roy's noise filter. I would have paid 
more than $100 for that alone.)

Once you have done this, you will find the system you have built will 
match the recommendations in the article, and there really isn't 
anything any better out there for you to start with. You can trade 
with it without losing your rear. 

Oh, I almost forgot. Does it come with an exploration. No, it 
doesn't. But that's not a factor. 

You really should trade from a fixed group of stocks in my humble 
opinion. VERY few people have found success searching 7000 stocks a 
night for the one's that have the little green or red arrows popping 
up. It's better to use a pre-screened group such as the S&P Platinum 
Portfolio or the Valueline T1 stocks or the IBD 100. 

If you don't want to use those, then scan by HAND every night a set 
group like the S&P 100 or 500. You really do need to look at all 
those charts by hand because you need to see where in the cycle each 
stock is and what it's chart looks like. Nothing beats learning to 
read charts, and exploring every night just won't teach you how to do 
that. If you insist on having stocks that meet a certain criteria, 
learn to use Marketscreen.com. Yes, my brothers and sisters, you have 
to pay for it but it's a much better exploration system than you'll 
ever get with TA in a box like MS, and it's already programmed for 
you.

You also need to learn to use secondary entries because a stock that 
is already trending has a better probability of continuing to move up 
than a stock that has it's little red or green arrow showing. And 
please remember---resist the urge to trade against the overall market 
trend. The trend is your friend! 

What does a secondary entry mean? Well, if you open a chart and the 
Clayburg are passed their intial buy signal and the stock is showing 
a trend with Roy's filter, if you buy it even though it's passed it's 
intial entry point, you stand a very good chance of making money. 
When the Clayburg's and Roy's filter tell you to sell it, you follow 
those indications no matter what your intuition tells you, or what 
the little green and red arrows are doing. 

Okay, those are my small contributions for those of you who wish to 
have a trading system but don't know how to create one. You are 
probably still grasping at straws, which you won't have to do any 
more thanks to uncle Super. 

Are we all feeling like good dobee's now?





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