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> From: John Dundee <jdundee@xxxxxxxxxxxxxxx>
> To: RealTraders Discussion Group <realtraders@xxxxxxxxxxxxxx>
> Subject: Re: Mechanical Trading
> Date: Monday, January 19, 1998 3:35 PM
>
> Hi Steve and all,
>
> I'm sorry. Must have missed something. What is the name of this system?
> Also just for clarification, my point was not that mechanical systems do
> not work. I day trade using mechanical indicators stochastic, pivots,
> channels and MACD. Point was many of these black box systems do nothing
> more than correlate a few recognized traditional indicators that
> generate signals. Then the promoters market them to the public at
> exorbitant prices claiming they are a proprietary and secret method.
> When in fact, it is not true and simply hype designed to take your
> money. Many of these companies are being charge with fradulent practices
> by state and federal regulators
>
> I have compared some of these black box system signals using traditional
> indicators and found you can do as well or better using these simple
> indicators exactly the way the creators suggest. And these is free.
> However you have to invest first in your education and learn how to use
> them.
>
> Reminds me of the Joe Karbo's "Lazy man's way to Riches". Buy my system,
> turn it over to someone else, take a vacation and come back rich.
>
> Again, do not get me wrong here because I also believe in technical
> analysis and the use of mechanical indicators. Just do not buy into the
> idea you can trade any of them without knowing how to trade. The problem
> is the education, experience and the knowledge trading requires is left
> out of the equation. Guess I have wasted the last 17 years because I did
> not realize how easy it is. Maybe the trader is being replaced by
> automation like other industries and the whole world of money management
> goes to the computers.
>
> Good Trading,
> JD
>
> Steve Schnake wrote:
> >
> > JD and all,
> >
> > I too bought the $16,500 system that Jonn trades, back in 1996. It was
a
> > little cheaper then, but after about 5 weeks it had re-imbursed me
fully.
> > I'm still trading it. I vouch for what Mr. Cappelo has stated.
> >
> > Foolishly smiling,
> > Steve
> >
> > ----------
> > > From: John Dundee <jdundee@xxxxxxxxxxxxxxx>
> > > To: RealTraders Discussion Group <realtraders@xxxxxxxxxxxxxx>
> > > Subject: Re: Mechanical Trading
> > > Date: Monday, January 19, 1998 4:15 AM
> > >
> > > $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
It may well be true that some black box systems perform no better than the
free jelly doughnuts, but you have no idea what computer code or methology
is in them unless your hacking skills are outstanding. If this is the
case, you are wasting your time trying to trade and should be out there
creating black boxes.
Jack Hutchison
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