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Tracy Mullem wrote: "Referring to this last statement I am more convinced
that using basic indicators such as moving averages along with RSI and going
with the trend along is better than trying to predict a peak. It seems like
the simpler the system the better it works. I am interested in the typical
number of variables that are used in their system."
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I couldn't agree more.
I have been striving to develop a mechanical trading system for a few years
and I have found it to be a very gradual development which takes alot of
time in research, but it seems that nothing worthwhile in life is attainable
without working for it.
I have now found what I've been looking for and yes I feel that you are
quite right, I use only very simple well known indicators, the trading
system works very well in the widely traded liquid markets, it is very
selective with its signals and tells me that we do not have to be constantly
'predicting' peaks and troughs in an attempt to be some kind of a
guru...it's more a case of following the direction and momentum of the
market.
One thing which I feel is important is that somehow we have to determine the
'trend' (or lack of trend) from the indicators and then filter the
entry/exit by using a tool which is closer to the actual price
eg.candlestick formations or price channels or some technique which is based
completely on some combination of open, high, low or close.
But I feel simplicity is the way forward and with regards to the typical
number of variables that are used, I would suggest about three indicators
with a price based filter stuck in the end.
Anyway just a few thoughts. I'd be interested to hear from some of the
experienced traders out there and what their general thoughts are on the
subject of developing a mechanical trading system. I apologise if this topic
has been covered numerous times before but I am fairly new to this forum.
Regards,
Tom Nagle.
Tullett & Tokyo Forex International,
Cable House,
54-62 New Broad Street,
London EC2M 1JJ.
Tel: +44 171 827 3409
www.tullett.com
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From: Tracy Mullen
To: RealTraders Discussion Group
Subject: What are the basics?
Date: 17 March 1998 20:40
Referring to this last statement I am more convinced that using basic
indicators such as moving averages along with RSI and going with the trend
along is better than trying to predict a peak. It seems like the simpler
the system the better it works. I am interested in the typical number of
variables that are used in their system.
Tracy
-----Original Message-----
From: G144man [SMTP:G144man@xxxxxxx]
Sent: Tuesday, March 17, 1998 1:06 PM
To: RealTraders Discussion Group
Subject: Re: GEN: Help Elliott Wave Prin.
historically the only thing elliot wavers ever got was a chance to wave
goodbye to their money.
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