|
PureBytes Links
Trading Reference Links
|
Consider that you need to know how much lag is built into to the particular
system and what each system is measuring ... a pattern based system will
have little lag while an MA based system will have considerable lag. It's
not unlike the traders who load up their charts with a bunch of different
price momentum based indicators (RSI, ROC, Momentum, Stochastics, MACD,
etc.) and feel warm and fuzzy when they all say the same thing.
Earl
----- Original Message -----
From: Mervin Yeung <tinyeung@xxxxxxxx>
To: <realtraders@xxxxxxxxxxxxxxx>
Sent: Tuesday, December 07, 1999 7:06 PM
Subject: [RT] Conflict of systems {01}
> Hi RTs,
>
> Does any RT use more than 1 trading system? What would you do if
> different systems come out with opposite forecasts?
>
> Give you an example. March 2000 cotton. If you use MA cross over, you
> still have short positions. If you use breakout rule, you probably have
> gone short but got out today because you are afraid this thing is doing
> a "false breakout". If you follow trends AND adopt "buy breaks, sell
> rallies" axiom, then you are waiting for this rally to finish its surge
> and go short again. If you like to pick the tops and the bottoms, now
> it is the time to go long. If you use "Purple System" (An unorthodox
> application of an ancient Chinese Astro. method), then cotton will shoot
> up vertically and never look back. .......etc. There are hundreds of
> systems that give you all different forecasts. No wonder is trading
> difficult!
>
> I think consciously and subconsciously, deep our mind, we must be at
> peace with our methods. For example, Norman often gave us his Astro.
> forecasts, which are often quite accurate. (In my opinion) However, I
> simply could not bring myself to trade on Astrology because I studied
> too much Physics and Math. in college.
>
> However, I always love to see Norman's forecasts.
>
> All the above are for general information only, not for trading
> purpose.
>
> Mervin
>
>
|