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5/4/01
Rockford, IL
Just finished LeBeau & Lucas again.
It seems that a Moving Averge system combined with a rising ADX shows
excellent results in end of day trading.
Any advice for a beginner who has done a lot of reading?
Lenny Ladner
----- Original Message -----
From: "Bengtsson, Mats" <mats.bengtsson@xxxxxxxxxxxx>
To: "Gene Pope" <gene@xxxxxxxxxxxxx>; "Prosper" <brente@xxxxxxxxxxxx>;
<omega-list@xxxxxxxxxx>
Sent: Tuesday, May 01, 2001 2:14 AM
Subject: RE: Trading Systems
> I have back tested many different systems over the whole universe of
stocks
> in Sweden. Many systems published in America are to "curve fitted" to work
> on our stock universe. Some systems work, but when they becomes well
known,
> they seize to work.
>
> One of the very rare exceptions to this is the MA-systems. Widely known,
> widely published, widely used. They still work anyway.
>
> My guess is that since there are soo many different ideas on what
MA-length
> to use, they do not get worn out like other systems will (in difference to
> MACD which is also a MA-system but where people tend to use similar
lengths,
> that system does not generate any backtest profit unless you either tweak
> the logic a bit, or defines what stocks it will be used for which can get
> any system to work until future hits you).
>
> > -----Original Message-----
> > From: Gene Pope [mailto:gene@xxxxxxxxxxxxx]
> > Sent: den 1 maj 2001 04:58
> > To: Prosper; omega-list@xxxxxxxxxx
> > Subject: Re: Trading Systems
> >
> >
> > Prosper,
> >
> > >What about these guys logic
> > > makes it work?
> >
> > One answer is in the book I posted a few days ago... The
> > Ultimate Trading
> > Guide by John R. Hill, George Pruitt, and Lundy Hill.
> >
> > Basically, an MA system can become profitable as soon as you
> > add a way of
> > checking the overall trend in a more macro sense. This
> > eliminates a lot of
> > the whipsaw trades, since it takes a period of time for the
> > macro price to
> > "catch up" with the faster current trend, thus eliminating
> > suspect counter
> > trend entries (not all, just enough to push the system to
> > profitability).
> >
> > When I applied the really simple concepts in the book to my
> > MA systems, my
> > jaw nearly hit the floor.
> >
> > And of course, there are plenty of counter-trend systems out
> > there that are
> > combined with the trending systems to attempt to catch it "both ways".
> >
> > Just passing along what I've learned so far.... I'm far from
> > an expert...
> > ;-)
> >
> > Gene
> >
> >
> >
> > ----- Original Message -----
> > From: "Prosper" <brente@xxxxxxxxxxxx>
> > To: "Clyde Lee" <clydelee@xxxxxxxxxx>; <omega-list@xxxxxxxxxx>
> > Sent: Monday, April 30, 2001 9:52 PM
> > Subject: Re: Trading Systems
> >
> >
> > > Clyde,
> > >
> > > This is the most interesting thing that I have read about
> > systems for
> > > awhile. If you don't mind I'd like to ask you a few questions.
> > >
> > > You asked if he bothered to checkout the methods used. How
> > would someone
> > > find out what the method these traders used?
> > >
> > > Every new trader has tried MA, it comes with the software, but they
> > > almost always show loses in back testing. >
> > > You didn't follow the MA route did you? If not why not? Is
> > SM better?
> > >
> > > Thanks, if you have the time.
> > >
> > > Prosper
> > >
> > >
> > > >Did you bother to checkout the method these guys use and
> > > have used for almost 30 years.
> > >
> > > I have some of Dunn's first works and they (MA believe it or
> > > not) still work when you follow their logic.
> > >
> > > I can remember hours spent on a SDS Sigma 5 printing out
> > > charts which were "plotted" with a printer with closing prices
> > > and a couple of moving averages working.
> > >
> > > Very informative then (1970) and still is -- don't forget the value
> > > of moving averages.
> > >
> > >
> >
>
>
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