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Hi,
I was a beta tester for the NDX service and bought an additional
month after that. IMHO this was worth the $150/mo they charged
then just to see how someone else daytraded the NDX. I picked up
a couple tricks from doing this that I did not already know.
ALL COMMENTS APPLY TO THE NDX SERVICE ONLY...
> The NQ results look better -- a sharp jump ($15k) in early Oct.
> followed by a steady growth of another $15k by the end of Dec. Then
> a $6k drawdown in Jan. followed by a $12k runup in Feb.
>
The numbers they posted to their site while I was subscribed were
a little more optimistic than the day really went, but not enough
to change the basic flavor of things. If you are not doing as
well yourself a subscription might be worthwhile.
> So from my brief look at it, I wouldn't touch the SP signals. The NQ
> signals come from another trader, and while he's had some rough
> patches, he seems to do better. But it looks like you'll have to do
> 6-10 trades every day to match his results.
>
The 6 - 10 trades seems right, which is what I do normally too.
It seemed to me this guy's rough patches came from being too
concerned with the longer term trend. The long term trend was
clearly down while i was subscribed. On days when the intraday
trend was clearly up he would still avoid longs, and take the
shorts, and loose money. When the intraday trend was down he did
a good job.
> OUCH! I haven't looked at the site but that many 2 lots is something
> like 400 RT/month. $8K/month is $50 per trade per contract. And these
> are "simulated" trades. By the time you got a signal from some service
> and got the order done, your slippage could be MUCH worse than that.
> I'll pass.
>
Not all trades were 2 lots. Lots were 1 lots. Initial 2 lot
trades often were reduced to 1 lots at first sign of resistance.
> If you bring the NQ intra-day data down to the smallest level possible
> whereby you can get filled close to your signals, there might be a maximum
> of eight significant waves in a choppy-yet-tradeable day. However, this is
> rare. 2 to 6 significant waves is typical. Significant meaning enough
> room for indicator lag slippage and commision on both sides of trades to
> allow for profit. If you are wrong 35-40% of the time and all significant
> waves
> get past your filters(hard to believe) and you are occassionally taking
> more than
> one attempt at a significant wave when stopped out by noise, I can see how
> you
> could average
> 6-10 trades per day. But it sure would be exhausting. At least you'd
> always have a best friend--your broker.
I do pretty much what you describe for a living and find it less
stressful than all other forms of trading. I don't have to do any
research, watch the news, or try to predict the market. I get up
every morning and spend 6 hours letting my system tell me what to
do, then I'm flat and done for the day. No overnight positions to
worry about.
> >By the time you got a signal from some service
> >and got the order done, your slippage could be MUCH worse than that.
The NDX guy usually gave limit order data a minute or two before
time to enter/exit. Plenty of time to set up. Slippage was
usually nonexistent.
>
> Got that right. Can't imagine this trader executing and sending out signals
>
> to customers all in a timely fashion when trading at this speed. Maybe I'm
> wrong
> but I'm not aware of any technology that can handle that.
Then I guess you must think that web based exchange data feeds
are magic. 8-) The technology this service has in place to
broadcast orders is a little primitive, but definitely adequate
for the job.
regards,
tbr
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