|
PureBytes Links
Trading Reference Links
|
5 to 10 minutes of you time with TS and some back data should answer your
question about his. This kind of system goes through big ups and downs.
Useing a simple cross overs of 2 moving averages with the ADX all set to
popular lenghts like 14, and 21 gets you about $140,000 draw down in the S
and P 500 right now.
The only MA system that seemed to work was one that used a long term MA like
Length=200 and you always take trades with that trend. You forget the other
side all together until the MA goes the other way.
Prosper
----- Original Message -----
From: "leonard d ladner" <ldladner@xxxxxxx>
To: "Bengtsson, Mats" <mats.bengtsson@xxxxxxxxxxxx>; "Gene Pope"
<gene@xxxxxxxxxxxxx>; "Prosper" <brente@xxxxxxxxxxxx>;
<omega-list@xxxxxxxxxx>
Sent: Friday, May 04, 2001 7:18 PM
Subject: Re: Trading Systems
> 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.
> > > >
> > > >
> > >
> >
> >
>
>
|