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Red alert! Red alert! Geez, this group is getting testy. I wrote a total
of 5 private notes to people who asked me about Walter Bressert's
CycleTrader, which I use and like. (I had written a broad note to the whole
group a few days earlier.) I wrote back essentially the same note,
privately, to all five. One wrote back and asked for follow-up. But two
wrote back and accused me of shilling for Bressert and one of those two said
I was insufficiently responsive to RealTraders. Holy cow. Why can't we just
enjoy this forum, and take everyone with however many grains of salt our
experience suggests we use, without impugning the motives of everyone? I
wonder if Eddie has a high dropout rate because of this crap. I don't have
the time and energy to play politics on this forum; I just want ideas that
will help me, and in return I will share some of my thoughts. I work for no
one except my family, no system vendor or broker has ever given me one damn
cent for anything (including reduced rates for "sending" customers), and I
will not spend all day on-line teaching people how I trade.
Having said all that, here are the two notes I sent out privately on Walter
Bressert's system. It is areally good system, and I do recommend looking
into it.
XXXX, thanks for your note. Telling you how I set my charts up would take
half a day, no joke. Let me make a suggestion to you. If you have the time
and inclination, you might wish to attend one of Walter's two-and-a-half-day
weekend seminars. Sat. and Sun. he himself teaches the program - and how to
set it up - on TradeStation; I must admit, I probably wouldn't be using
CycleTrader without having attended the session. I have about 10 pages of
extensive notes on how to set up the various charts (each commodity is
different, and the S&P depends on day or position, and even then you can
adjust ... ) Cost is in the reasonable range; I can't recall, but maybe $400
to $700. Again, I don't mean to sound as if I don't wish to be responsive,
but it is a massive job, even for Walter himself, to teach people how to set
up the charts. I think if you can find time/money for the seminar, it would
be very, very worthwhile.
Well, you're pretty persistent! It really is a long job, even the small part
you asked about, and I still think you should go to the seminar. But here's
a small part of the answer. (Again, not trying to be coy, it's just too damn
complicated!) You only take trades in the direction of the trend; the trend
is the direction of the next-highest time-frame chart, from the chart you are
using to place your orders. Say you trade in 30-minute chunks (in and out in
30 mins.) or from hourly bars; then do not take a long trade if the daily
trend is down. Second, general rule, enter only if the market trades above
(let's just assume long trades here; reverse for shorts) the top of the
paint-bar (the setup bar), by at least one tick (maybe more - e.g., locals
could be on to Walter!). Do not take even that trade if it takes 3 bars to
get there. So say you're on the 5-min. bars, you get a paint-bar setup, next
bar is inside bar, then tough, you don't trade (can't trade on third bar,
remember?). Or, say you're on 5-min. bars, you get a paint-bar setup, the
hourly trend is up, and the next bar goes above the paint bar. You could
either have a limit order in with the broker (one tick above the paint-bar)
or, if you're like me and know that the floor doesn't trade on your bars and
your data lag, call the broker and put in a market order as soon as the bar
is surpassed. Get the fill (holding on the phone) and then put in your
stop-loss order right then and there (stops are put in at one tick below the
bottom of the "cycle-bottom" bar, which is the bar just prior to the setup
bar).
I hope this helps.
Good luck.
Larry
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