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VOLATILITY TAMER / BABCOCK
Has unique idea of only taking trade if volatility is small enough to
justify a stop less than a certain dollar value. So this is codifying a
rule we might typically make to skip a trade if the risk is too large.
That's great. The catch is there is a difference. Presumably we would
just skip the trade. In VT, if the vol. goes down the trade may be
taken later. This seemed to generate a lot of late entries. (but
that's a bit of an "emotional" assessment - if the system works overall,
who cares?)
I really only played a bit with this one. With the generic parameters
supplied it was unprofitable on some commodities (at the time I bought
it). (RB Trading advertises it like you can use the same parameters.)
However, if you optimize the parameters in the one or two commodities i
tried you could come up with profitable results. To me, its quite
reasonable to think you would need a different $ stoploss on coffee than
corn. Maybe the length of some indicator should be the same, but I see
varying the $ level of the stop as ok. (Actually i prefer some % of the
daily range bec. then we can get back (possibly) to a single value for
all commodities.)
Because my experimentation with this was never really completed I can't
give an overall assessment (like my opinion would matter).
While he was alive Babcock claimed to trade his top 4 or so systems with
his own savings, and apparently the demo account continues on. (Many
vendors don't trade at all. That's not a reason to exclude them but an
interesting note anyway.)
One other intiguing thing: several of his systems are said to be
profitable using *weekly* data with only small changes in the parameters
(and not necessarily a much larger stop). For those of us with other
committments, this sounds very attractive. Just look at the markets on
the weekend? Other than these (and one of Peter Aan's system services),
a weekly system has seemed impractical to me in commodities. I'd be
interested in feedback.
Since I have this one, I ought to look at it more closely.
[definately not a systems expert!]
Conrad Bowers
HBernst963@xxxxxxx wrote:
>
> Just got the annual mailing from his successor company. Does anyone have info
> on some of these systems, such as the Gann Pivot, Valentine or Volatility
> Tamer systems? Thanks.
>
> Howard
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