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PureBytes Links
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Paul & other Trading Mechanics,
Before acting, I suggest you check out <mesasoftware.com>. This is John
Ehlers (of TSAC fame) site and he displays and provided considerable
information about his systems. I believe he might have a 30 day trial for
$50 or so. Also a good guy!
Profitable Trading to you,
Hal
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At 05:15 AM 1/19/98 -0500, Paul Cote wrote:
>I believe mechanical trading does work. The turtles used a mechanical
>trend following approach. Bob Buran uses a mechanical approach. Tom
>Dorsey uses a mechanical approach using point and figure charts. A
>simple system for trading a mechanical system might be to use indicators
>to define a trend such as dmi and moving average. If the market is not
>in an established trend you don't trade it. Then, during a down trend
>trend for argument sake, when the %R rises to a given level, enter on a
>stop below one bar back and put your safety stop over the most recent
>swing high. Then, trail your stop behind swing highs until stopped out
>and add a contract on every further signal. Now this is a relatively
>simple system and ought to be a winner.
>
>I have not tested this on software but would like to hear other sytem
>ideas from folks.
>
>Paul Cote
>John Dundee wrote:
>>
>> $3000 to 16,500 for a mechanical trading system. "You can fool all of
>> the people some of the time and some of the people all of the time".
>>
>> When doing my serious research into mechanical systems something
>> interesting came up. Two commodity hi-net worth trading manager's at a
>> large international bank stated to me the best performing system they
>> found was to find the one that did the worst and do the opposite. The
>> returns were much higher than trading the most expensive neutral net or
>> other system top performer's.
>>
>> Perhaps the best move to make is to buy the cheapest system available on
>> the bottom of the performance lists and use it in this fashion.
>>
>> Good Trading
>> JD
>
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