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Andy
If you google around on Tharp you'll find a good body of very dissatisfied
users of his highly priced courses and other services. Not a scientific
survey, but a contrast to e.g. Elder, where you'd be hard put to find anyone
with anything negative to say.
Also, if you look hard at the details of his numbers you will find many
oddities. For example, the math of his position-sizing chapter in TYWTFF
just doesn't bear any scrutiny - lots of apples/oranges comparisons, etc. He
makes comparisons between different position sizing algorithms but doesn't
control for leverage, negating the results. You can demonstrate this to
yourself by working through the chapter as if you were trying to duplicate
the analysis (hard in MS but doable in TradeSim).
Contrast Tharp with Schwager - both have talked a lot to successful traders
and have a talent for summarizing what they heard - but all of Schwager's
work is mathematically and logically rigorous (if someone were to translate
Schwager's Trading Course from TradeStation to Metastock language then you'd
have the ultimate system building training tool).
Happy trading
Andrew
-----Original Message-----
From: equismetastock@xxxxxxxxxxxxxxx [mailto:equismetastock@xxxxxxxxxxxxxxx]
On Behalf Of metastkuser
Sent: Tuesday, June 14, 2005 10:48 PM
To: equismetastock@xxxxxxxxxxxxxxx
Subject: [EquisMetaStock Group] Re: Why do traders FAIL?
Andrew,
I'll take a look at Connie Brown.
Why do you say Tharp is a very mixed bag?
--- In equismetastock@xxxxxxxxxxxxxxx, "Andrew Tomlinson"
<andrew_tomlinson@xxxx> wrote:
>
> You don't know whether you are there yet without extensive
backtesting using
> realistic execution assumptions under a variety of market conditions.
> If your system can't be back-tested then it needs to be extensively
traded in
> real life, again under a variety of market conditions. Without
back-testing,
> traders tend to have less confidence in their systems and start to
ignore
> entry signals and get out early or override exits and stops. It's
one reason
> why they fail.
>
> If you want to trade in a discretionary fashion, then trading
psychology is
> critical. Elder is a start, Tharp is a very mixed bag - you could
look at
> Connie Brown, Aerodynamic Trading.
>
> Andrew
>
> -----Original Message-----
> From: equismetastock@xxxxxxxxxxxxxxx
[mailto:equismetastock@xxxxxxxxxxxxxxx]
> On Behalf Of pumrysh
> Sent: Tuesday, June 14, 2005 1:47 PM
> To: equismetastock@xxxxxxxxxxxxxxx
> Subject: [EquisMetaStock Group] Re: Why do traders FAIL?
>
>
> 1. False expectations
>
> 2. Probably not much more unless there is something really new
> introduced.
>
> 3. Mismanagement and #1
>
> 4. This one is fine.
>
> Preston
>
>
>
> --- In equismetastock@xxxxxxxxxxxxxxx, "metastkuser"
> <andysmith_999@xxxx> wrote:
> > I have a question (unrelated to Metastock) for the experienced
> traders
> > on this forum.
> >
> > I have now read a dozen books on trading -- not the foo-foo books
> that
> > promise $10M in the next trade, but ones by Tharp (my favorite),
> > Chande, Le Beau, Stridsman, Elder, Covel, Schwager (and O'Neil,
> > Link,...) and a couple of Tharp's IITM publications on money
> > management etc. Will get to Kaufman next. And of course every issue
> of
> > Roy's MSTT which are simply marvellous.
> >
> > I've put a couple of hopefully positive expectancy systems together
> > (discretionary at this point so it's not easy to use the system
> > tester). The systems have four stages: 1) setup (to identify market
> > trend and stock trend but not entry), 2) entry (looks at timing), 3)
> > exit and 4) money management. I have spent quite a bit of time on 3)
> > and 4) because I believe they hold the key to being a successful
> > trader. I use volatility as a significant determinant in all 4
> stages.
> >
> > So I've done my homework. The odd thing is that none of this has
> been
> > difficult to understand -- not just for me but I'm sure for anyone
> who
> > takes the time and has some patience.... and now I am confused.
> >
> > 1) Why do so many traders fail? Have they not read these books?
> > (Please don't reply that they are undercapitalized and/or they have
> > the wrong psychology for trading).
> >
> > 2) What do reading the next 50 books buy me (besides the enjoyment
> of
> > reading them)? Surely the law of diminshing returns kicks in right
> > about now.
> >
> > 3) At this point, what would the typical causes of failure be?
> >
> > 4) This is a Metastock forum. Can someone point me to a more
> > appropriate forum for this type of discussion (I have not found
> one).
> >
> > Thanks!!!
>
>
>
>
>
>
> Yahoo! Groups Links
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