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Bob, I hope I don't shock you, but
I've decided to take your advice. I am going to subscribe to Roy's newsletter,
plus the back issues. I looked over the sample and it was great. Now if I don't
learn anything, I am going to blame you! :)
Gary
From: Metastockusers@xxxxxxxxxxxxxxx
[mailto:Metastockusers@xxxxxxxxxxxxxxx] On Behalf Of Bob Sent:
Friday, August 26, 2005 1:44 AM To:
Metastockusers@xxxxxxxxxxxxxxx Subject: [Metastockusers] More Feedback
on Trading Slim
Okay, you found out that most people like TradeSim. What more do
you need to know?
You can buy the cheaper version and work your way
up.
If you're going to sweat spending $300 on tools by trying to make
the perfect decision, read my first post again and forget trading.
Nothing in trading is a perfect decision. Far from it.
As I
explained, newbie trader's have no idea how to do systems testing so what
difference does it make what they use to do it with. It takes a trader
several years and a light year or two of education to figure out how to
setup, do and read a system's test properly. In addition, if you don't
understand how market conditions impact tests and how to design in sample and
out sample data to figure that out, your results are going to be
suspect.
I'm not saying newbie's shouldn't do systems tests. It's part of
the learning curve. However, I am saying the test results are baloney
for the first few years, and even when they're done right, live trading
is different and often unrelated.
I keep telling you to read Roy's
newsletter. I can see you intend to ignore that advice. Roy is going to do an
indepth review of TradeSim later this year. In addition, he'll tell you how
to use the system's tester, and there are articles in there that might just
give you some "real" insight into trading. Believe me if you're curious
about Performance Systems as a plug-in you need to learn everything in
Roy's newsletter as soon as possible. It will save you a lot of
money chasing bad ideas.
There's some fundemental knowledge in there
about how trading works that every trader should learn first thing. Most
figure it out after many years. It's seems like such common sense, but
believe me it's not.
Monte Carlo simulation is another issue altogether.
Ninety percent of the Monte Carlo simulators I see are poor applicaitons of
the principle. In the first place the only way you can get
accurate results from Monte Carlo simulation is by putting in the stats
from live trading. When you run a system's test you don't have the
results from live trading, you have "theoretical results" so you get
a theoretical Monte Carlo simulation. That won't buy you much.
I
don't mean to be rude, but you're really putting the cart before the horse.
You need to learn to trade before you worry about systems testing, muchless
Monte Carlo simulation.
There are three articles in Roy's newsletter on
trading the IBD that will get you trading and maybe teach you how to make
some money sooner rather than later. It's the simplest trading technique for
making money that I've seen. Start there. You won't need plug-ins,etc.
Then when you've been doing that successfully for awhile you can
worry about systems testing and Monte Carlo simulation.
Kaufman's
book is way too complex for most people. You should read all of the other
books first and then come back to Kaufman's. After you've been trading for 5
or 10 years, Kaufman's book will be more transparent. I'm writing a few
articles on some of the stuff in Kaufman's updated systems book, which just
came out. I'm going to illustrate how to apply some of the more interesting
info properly.
It's hard to learn system's development from Kaufman, but
you can refine systems based on what he says--if you know a hell of a
lot about what you're doing.
Stridsman tests all kinds of systems and
tells you what the test results are. Stridsman is the poster child for why
most traders fail. He is a great systems developer yet the vast majority of
his systems are too eratic and inconsistent to make money year in and year
out. He is telling you that most of the stuff that traders love to use
doesn't work worth a crap. He's a great education in learning to read
systems tables and how to set up tests.
Chuck LeBeau and Chande are
good also. But again, the info that Roy has published beats them all.
Email Roy and ask him for a free copy of the April issue of MSTT
with the SPY and QQQQ trading system in it. Then you'll figure out why
you should be reading it.
www.metastocktips.co.nz
By the way,
you should keep a copy of the rules of trading I posted and in three or four
years if you have any money left read them again. They'll have more
meaning.
The other group that will help you go broke is:
http://finance.groups.yahoo.com/group/equismetastock/?yguid=157730241
Forget
metastock.com . That mule don't pack!
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