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I can't make it a mechanical system because the inputs
are subjective. I don't just place an order on any
future fib-level. Whether I take the trade is subjective,
and the "strength" of a fib level is subjective.
My experience leads me to believe that this is the only
way to trade profitably (consistently). I have no
interest in mechanical trading because I don't believe
we have the hardware/software tools to do what the human
mind does. I've tried to make it mechanical, but no longer
have the need to.
I know great traders who have never had a losing month in
years, but have yet to find a mechanical system that does
this.
This is just my opinion, I am answering a question posed
to me (below). Don't bother flaming, your opinion is as
good as mine. I have an open mind, point me to a mechanical
system that is as consistent as the best human traders,
or else don't add noise to this email list.
Thanks,
-Neal.
At 02:31 AM 11/17/98 EST, DStan34930@xxxxxxx wrote:
><<snip>>
>Leading indicators (attempt to) tell you where prices
> will go (or turn/find support/resistance) BEFORE they
> get there. Leading indicators are predictive (though not
> reliable for mechanical/blind trading).
><<snip>>
>
>Why not? You practically defined a situation below. You laid the ground
rules.
>That's half the job.
>Now it can be written as code and tested. If it holds up in testing then it's
>valid.
>If it doesn't hold up, you may have left out something you normally add to
the
>mix,
>in which case, you would define it, add it to the mix, and test it again.
>
>dbs
>
><<snip>>
> Also, leading
> indicators are valuable in deciding when to fade a
> common lagging indicator. For example, you know that
> the blind followers of the common Stochastic 25/75 will
> be on the wrong side of the market on the first false
> signal that Stoch gives near major Fibonacci
> support/resistance (they will drive price right to a
> Fib level, where your entry order is, then they will be
> scrambling to reverse just as you are taking a profit)....
><<snip>>
>
>
>
>
-----------------
Neal on the 'net.
Trade well. Train hard.
http://www.halcyon.com/neal/
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