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I believe that the best system of all is the pattern recognition and
interpretation ability of the eyes and mind, therefor it is absolutely
essential that I have trust in myself. This is not to say that, whenever
possible, I do not construct tools which will assist my eyes in the
disciplined recognition of patterns. But ultimately, after a decade of
building indicators and systems and back testing them over bull and bear
markets, I concluded that my considerable programming skills were not up to
the task of creating trading decision tools in which I could trust for all
markets. Interestingly, I found Edwards and Magee quite late in my trading
career and it was then that I realized that the same simple patterns and
techniques which E&M documented 50 years ago still work today.
Earl
-----Original Message-----
From: Dick Webb <dickwebb711@xxxxxxxxx>
To: RealTraders Discussion Group <realtraders@xxxxxxxxxxxxxx>
Date: Wednesday, March 10, 1999 1:11 PM
Subject: Trust=great system???
>For years i have been working on building the perfect system...what
>ever that is. In order to bring me there I decided that part of what
>it takes is asking the right questions. Recently in a discussion with
>a trader I came to the idea that an important question is:
>
>What do you trust?
>
>While at first glance this may seem simplistic the result for me has
>been interesting. When I ask a question like what would be a great
>system? I come up with a totally different answer. With the trust
>question I found myself led to something that may be a great system.
>
>
>
>Does anyone have experience with asking yourself questions that lead
>to good answers?
>
>Regards
>Dick
>
>
>
>
>---Earl Adamy <eadamy@xxxxxxxxxx> wrote:
>>
>> Someone asked what I'm using to trade these. Believe it or not, just
>"lowly"
>> uncomplicated bar charts with raw price action unfiltered by
>indicators. I
>> do have one indicator mounted on the daily charts of all these
>commodities -
>> 10 day average true range so I can do a quick ATR * tick size to see
>if I
>> want to touch the commodity. I have about 20+ different commodities
>setup,
>> each in a SuperCharts workspace with weekly chart on right monitor
>and daily
>> chart on left monitor. I work the weekly first using lines and a
>Fibonacci
>> tool to get the feel of the trend and the degree of thrust in recent
>moves.
>> Then I move on to the daily and do the same thing. If the odds
>appear to be
>> in my favor I considering entering a trade, if not I mark it for later
>> review or pass completely. Also, when position trading, I use the
>Bullish
>> Review of COT newsletter (see www.bullishreview.com) to give me some
>idea of
>> which way the various groups are leaning, especially the
>commercials. If I
>> decide I want to enter a trade, I look at the price action on the
>intraday
>> charts in Ensign www.ensignsoftware.com or LiveCharts at
>www.quote.com where
>> I don't have a real-time exchange subscription. I find that on
>quote.com,
>> which has no drawing tools, I can quickly approximate Fibonacci
>> relationships and trendlines by eyeballing the chart.
>>
>> That's about it. Basically what I do on the spoo day trading except
>that I
>> run much small time frames 2m/9m/45m/d and I run some custom studies
>on
>> premium and breadth.
>>
>> Ear
>>
>>
>
>==
>Big Lucky Dick
>
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>
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