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Hi Kim,
My belief on systems and system vendors is not that they are necessarly
trying to "rip" anyone off or sell junk, its that they don't understand
markets. Again my belief (which doesn't have to be yours) is that markets
are continually evolving. Patterns emerge, disolve, emerge again and
sometimes become extinct. To design a system around a recent pattern (ie
5yrs) and expect that pattern to continue is not wise. I believe some
system vendors truely feel that they may have stumbled on to some great
secret when they first develop a system. After the system does't make
them rich overnight they begin to sell it. That doesn't mean its "junk".
It just means the system was not conceptually correct during its design or
the trader lacked the discipline to consistantly trade it.
Below is the system I sold for $299.00 USD approximately 5 years ago.
Since then I have made $300,000 trading this exact system (please don't
e-mail asking exactly how) I followed every signal ($30,000 on 1 contract
over 5 years) and used trade/money management to exploit. (fixed
ratio-Rumery and Lehman, fixed fractional). The problem with selling
systems is that you end up spending most of your time acting as a
psychologist with your customers. I never became a professional trader to
be a psychologist. I believe everyone on this list could develop their own
system (that fit their psychological makeup) that would consistantly make
money if they understood markets and worked hard at development. Don't
expect miricles. I have developed and tested hundreds of systems, and if
your % winner is > 55% or max drawdown is < $5,000 start over you have
optimized to current conditions.
Uncoded version:(coded at the office)
1. High today must be > 36 day EMA.(robust for 20 to 60day EMA)
2. Highest 5 day RSI over last 9 days must be greater then 70(try using
dynamic zones!!)
3. Today's 5 day RSI must be more than 30 point below #2
4. If above 3 condition fulfilled, buy tomorrow at today's high on a stop.
5. If still in the trade, exit on the close of the 6th bar after entry.(I
have found time exits to be the best at smoothing equity curves)
6. Exit tomorrow on a stop at 175% of 4 day SMA of the truerange below
today's close.
7. If todays close is greater than the entry price plus 50% of the 4 day
SMA of the truerange, place a stop to exit tomorrow at today's close minus
50% of the 4 day average truerange.
8. Moneymanagement stop of $3500.
I have had only 4 vendors agree to my challenge and all 4 doubled their
money.
At 01:48 PM 6/8/98 EDT, you wrote:
>In a message dated 98-06-08 13:06:08 EDT, you write:
>
><< I have been a vendor and realized it wasn't for me. If you have the right
>marketer and advertizing
> program you can sell anyone anything from "Robo Grips to trading systems".>>
>
>I have never bought nor sold a trading system but just because one can sell
>anything with the right marketing etc., does not mean that one has to sell
>junk, rip people off and then try to justify their actions by laying the
blame
>at the feet of the purchaser. Your decision to cease being a vendor, if for
>reasons of conscience, is to be commended.
>
> <<I have a more equitably proposition which many vendors have agreed to in
>the past. >>
>
>This is very interesting and a great idea. Did you find any discernible
>difference in the quality of product of those vendors who did agree to your
>proposition?
>
>Rgds,
>
>Kim.
>
Bruce Harrison
<mailto://trader@xxxxxxxxxx>
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