|
PureBytes Links
Trading Reference Links
|
TL:
Well done. A great post! I would refer you to "Street Smarts" by Linda
Raschke
and Larry Conners where these ideas are discussed and to some extent
quantified. Did Schwartz say anything more specific about what type of
moving
average he employs? In an article in "Barrons" some years ago he said he
used
a 10-period ema but I was interested in more details. That's all he said.
I believe
he also mentioned this same period ma in an earlier interview with
"Futures".
Let me know if you can expand on this information and hope this feedback
helps.
Charles Meyer.
> From: TL <Timothy.H.Lee-1@xxxxxxxxxx>
> To: RealTraders Discussion Group <realtraders@xxxxxxxxxxxxxx>
> Subject: Systems: some thoughts
> Date: Wednesday, October 08, 1997 9:50 PM
>
> >
> > Having been an avid reader of the many posts here on systems as well as
> >
> > a fulltime trader myself I have some questions and comments.
> >
> > Most everything one needs to begin system development, as well as a
very
> >
> > good system appears in my favorite book "Market Wizards" .
> >
> > 1. Paul Tudor Jones--we have tested all the systems under the sun and
> >
> > found only one that works, it is "trend following" and based on a
sudden
> >
> > range expansion, in a market that has been trading narrowly.
> >
> > Question: how can you test sudden range expansion, on TS, how would you
> >
> > program in "find a market trading narrowly", i.e.what would define a
> >
> > market that has been trading narrowly?
> >
> > 2. Here is a great system that every good trader will agree works-
When
> >
> > the market does not react to the news the way it should go with that
> >
> > move strongly. Every "market wizard" followed this "system". How
could
> >
> > that ever be checked with a TS type program? Or programmed as a system?
> >
> > 3. How is anyone who ever looks at a bar chart able realize that one
> >
> > day's action might have been more news driven than another. Or that a
> >
> > sudden rumor triggered a selloff that ended when the rumor was denied?
> >
> > How do you factor in news? Shouldn't all systems focus on the news as
a
> >
> > primary indicator?
> >
> > 4. Professional traders seem focused on intraday data and divergences
> >
> > between indicators, how does one program in indicator divergence?
They
> >
> > also use the confirmation of other related markets, how can that be
> >
> > system tested?
> >
> > The best traders I know synthesize information from a variety of
> >
> > sources.
> >
> > 5. Since moving averages are in the long run profitable is it just they
> >
> > are too boring for people to use or comment on? There is not a study
> >
> > out there that seems to suggest the longterm use of moving averages
> >
> > loses money. To quote Marty Schwatz "using moving averages works
better
> >
> > than any other tool I have".
|