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My experience years ago has been negative. With systems I used, it was
stopping
trading after a drawdown which caused the line cross MovAv and resuming it
again
when the line was crossed back. Both, exits and reentries were late and, if
the system
was good, staying in would've been better.
I'ven't heard of other methods of trading the equity line with positive
results.
Jan Philipp
----- Original Message -----
From: "Charles Johnson" <cmjohnsonxx@xxxxxxxxx>
To: "Chris Cheatham" <nchrisc@xxxxxxxxxx>; "Omega List"
<omega-list@xxxxxxxxxx>
Sent: Thursday, February 27, 2003 9:20 AM
Subject: RE: The Due Effect
> Have you (or has anyone) had success (or failure) with the
> trade-the-equity-curve concept?
>
> Trading an equity curve with TradeStation is difficult but not impossible.
> From what I've read, Wealth Lab can do it.
>
> Ease or difficulty of implementation aside, the real issue is: does it do
> any good?
>
> -----Original Message-----
> From: Chris Cheatham [mailto:nchrisc@xxxxxxxxxx]
> Sent: Thursday, February 27, 2003 11:20 AM
> To: Charles Johnson; Mark Brown; Omega List
> Subject: Re: The Due Effect
>
>
> look at tech analysis of equity curves. I would suggest that every
> undiversified trading system has patterns akin to a market. They go
thruough
> phases just like mkts. A sys might have a 3rd wave type phase with minimal
> corrections for a while, then it gets whacked and you think it is broken,
> but really it is just going through a natural w4 correction. Managing all
of
> this systematically is challenging though.
>
> Chris
> ----- Original Message -----
> From: "Charles Johnson" <cmjohnsonxx@xxxxxxxxx>
> To: "Mark Brown" <markbrown@xxxxxxxxxxxxx>; "Omega List"
> <omega-list@xxxxxxxxxx>
> Sent: Thursday, February 27, 2003 8:55 AM
> Subject: The Due Effect
>
>
> > Mark Brown writes:
> >
> > i think to be successful with any system you have to have a confidence
> > level with it. know what it does, so that you can begin to suspect
> > when it will make a killing and when it may get whacked. it's call the
> > due effect (trade mark ;) it's what i have lived by. i did not invent
> > the due effect i was taught it by someone, and it can be quantified. i
> > think systems are like employees, you have to understand what they do
> > well and what they don't and then take it at that. you will never get
> > a perfect employee but that doesn't mean that they can't get the job
> > done.
> >
> > ----------------
> >
> > Mark, can you go into this more? Sounds like you are talking about
> > overlaying onto mechanical systems a discretionary trade/do not trade
> > decision.
> >
> > When you say "it can be quantified," do you mean it can be
systematized --
> > i.e., you take a system and you add more rules to it?
> >
>
>
>
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