Search results

Do you look at other performance statistics such as maximum drawdown, maximum consecutive losing trades, profit factor, winning percentage and total trades per day? When evaluating and comparing systems, I focus especially on profit factor and max % drawdown...

. Logical. My approach very similar, including entering with buy stop order above the high and stop loss order below the low using specific rules for the distances above and below.

. In his long journal, @volpri discussed his use of channels and described how he has adapted some of Brooks' teachings. Is there anything there regarding channels that might be helpful to you?

Padu and Max, thanks for putting up charts... very interesting approaches and interpretations.

. :thumbsup:

. Hi Rams Fan, I use momentum and trend indicators and so am not a Brooks-based trader, but I've always thought that the journal penned by @volpri was the best case for Brooks methods I've ever seen. One of his descriptions of the approach he uses was in the journal: “… Hoping it will help...

. This brings back memories... I had never heard of technical analysis or chart trading until I received one of Ken Roberts' booklets in the mail somewhere around the year 2000. Reading his stuff led me to read trading books by Jack Schwager and others and to begin trading a few years later...

. I have struggled to formulate good rules for using ROC indicators that would allow them to be incorporated into new or existing trading systems. I believe the classical approach was to take buy signals when the ROC line is above its center line and take sell signals when it is below...

. Ahem... some individuals have found value in utilizing the slopes of medium term moving averages like EMAs and WMAs to try to trade with the trend :). My preference is to only accept long entry signals when the slope is up and opposite for shorts. Combining them with a good momentum...

. Yea, I've posted a lot of charts about this and believe I am biggest proponent of using MA slopes for trend here. @speedo has talked about it a couple of times recently too. My experience is that they can work well to give direction to trades but not to provide entry signals, and they work...

. FWIW, I found that my system didn't give very many entry signals per hour on 5 minute charts, and that 1 minute charts were a bit too fast. Using 2 minute and 3 minute charts turned out to be the Goldilocks solution: not too fast and signals occurring in a timely manner.

Deciding to start backtesting specific entry and exit rules while scrolling through historical charts one candle at a time made a big difference. When I got a crappy result the first time a new idea was tested, I learned that I could go back and carefully analyze all the losers on the charts and...

. Your charts and bonehead comments are welcome contributions to the forum, always interesting and sometimes educational. :cool: Illegitimi non carborundum

. Scat, Thanks for continuing to post interesting charts. They're always thought-provoking, even for those of us who don't normally use this kind of TA. These posts are some of the best content on ET right now, IMHO (despite the "boneheads" stuff). @themickey just posted several charts that...

. Play Tetris... see abstract of 2020 paper below. J. Psychology and Neuroscience. 2020 Jul 1;45(4):279-287. Trauma, treatment and Tetris: video gaming increases hippocampal volume in male patients with combat-related posttraumatic stress disorder Oisin Butler 1 , Kerstin Herr 1 , Gerd...

. Am a big admirer of Ehlers' body of work too. The ThinkOrSwim platform I use has 9 of his indicators built in for use. I've also added 5 others to the list that I picked up elsewhere, including the zerolag MA you mentioned. Being who I am, I immediately re-coded it to show different colors...

Same. So much of trading is about trying to improve the math and move probabilities further in one's favor and this helps.

Hey, shouldn't you be asleep? If I'm doing the math right I think you posted this at around 3:30 am (!?) Agree about the 200 MA... I know a lot of stock traders swear by it, but it's really just too darn slow to respond to changes in the market IMHO. I'm primarily a swing trader, though, and...

. Appreciate your POV... my experience has been different, perhaps because of the method for deciding when to buy in an uptrend and sell in a downtrend indicated by the MA slopes. My stats are good when entries are only taken at the ends of dips during the uptrends, when prices have started to...

. wxy, glad you added this 2nd post to clarify & show the first one wasn't just a hit-and-run. :D My experience with moving averages is opposite yours... I improved my success rate when I began using two-colored medium-term (~ 40 - 70 period) moving averages, primarily EMAs. Their slopes...