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It's been awhile since I looked at it, but I believe that Cynthia Kase has
the clearest discussion of "tradeable timeframes" in "Trading with the
Odds". I have it written down in my "Newbie Notebook" to go back and review
what she says.
Steven Buss
sbuss@xxxxxxxxxxx
Walnut Creek, CA, USA
-----Original Message-----
From: Mark Brown <markbrown@xxxxxxxxxxxxx>
To: Omega List <omega-list@xxxxxxxxxx>
Date: Sunday, November 15, 1998 8:49 AM
Subject: NOISE
>I have traded the SP for a long time and I saw a comment that Perry Kaufman
>made in his book Smarter Trading where he states that most any thing under
a
>one hour time frame is just noise. I had never tried to think about a time
>frame setting the threshold for noise, I had always considered volatility
>and range to determine noise. So I have been heading this rule of hourly
>for a while now and it seems to be a viable theory. I do not like specific
>time frames in trading models rather I like to build models that use price
>levels instead. That way there is no need for a time frame, the decision
is
>made on something other than current price action. This way I have no fear
>of slippage, bad ticks, ect. I have plenty of time to enter a market and
it
>works many times to my advantage if I'm slower on a fill. I think once
>noise and noise levels are identified a trader can get on with trading and
>not worry about erratic moves that would disrupt an otherwise harmonic
>market.
>
>Mark Brown
>
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