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:D I prefer hourly bars myself. I only wish I knew how to program a trendline in easylanguage. An trendline algo would make an absolute killing.

Here is my suggestion: read up on trendlines in a technical analysis book. Consider this Euro chart and the lines therein. When bar closes above down trend line, go long (green dot), likewise go short when the opposite is true.

Hello, friend. I've looked over your past few pages and I've seen charts with highlighted price patterns, trend lines, and momentum divergence. Got any wave counts?

If volatility is greater than a threshold amount, reverse your buy / sell signals. http://www.ljmu.ac.uk/AFE/AFE_docs/ART0105.PDF

There is a very simple reason for this: you are a still in the mindset of a discretionary trader. Instead of trading a single stock you are trading you TF system's equity curve with the same (unhappy) results that prompted you to use it in the first place. You either trust the back test or...

Why not run one trend following system on another's equity curve? if chop > (value) then positionsize = 0 else positionsize = lvg*accountequity*riskamt etc......

Up / down is the only breakout filter I could figure out how to code up. Volatility with respect to the trend line you construct with point 1 and 3 is my tell that a trend is accelerating or coming to an end. And yes it's a fractal, and yes I mean orthogonal........

One Sentence Summary of the Hershey Method: "The market offers a series of profit segments defined by a trapezoid constrained by the first and second support, and first resistance, of a trend channel of compound size, the breakout of which can be anticipated with volume inflections" But I...

I missed the entire up trend last year because I hung out there, and paid attention to Prechter. Then I discovered system trading. :D

"Clear writing is a sign of clear thinking" -Seykota

Lol I'd be interested to see the principle behind that. Like a one-sentence description of the essence of the Hershey method.

It's there in the back test but I don't know if I have a real system or a 13 year curve fit. I've had that "partnership with the market" experience, briefly, with elliot wave analysis. But it leaves you hanging at times (during corrective waves i.e. the past 6 months). Here's the secret...

For real? I'm pretty thrilled with 1.4 and no surprises. Maybe I'm not taking the "full offer of the market"?

Wow. Before I discovered system trading, I used to analyze charts for hours, solving for elliot wave counts. It worked most of the time. And it wasn't half as complicated as what you posted. :D

I'm just in this game to make piles and piles of money.

Agreed, however the parameters might need to be recalibrated from time to time, at the discretion of the scientist in command........ Enough people figured out the 40 day breakout turtle buy signal to fade it. One system was even called "turtle soup".

Great post. I actually just tried a 2 tier stop loss based on consecutive losers, to kill some of the drawdowns. It boosted the 1 year profit by about 20%. This is where it's at - programming several systems that switch in and out during changing market conditions. Talk about an edge...

I actually coded up a money management line similar to this the other day and added it to my system. It modified the equity curve just like a stop loss (cut it by two thirds). The solution to the market chop is to reverse the trend following signal when volatility is above an arbitrary...

Aside from money management, it's just two lines of code (speaking on memory for their original system of buying a 40 day breakout and selling a 20 day). if close > highest (close,40) then buy next bar at open; if close < lowest (close,20) then sell next bar at open; Just reverse these to...

Fascinating stuff here. It looks just like classical technical analysis (channeling, volume leading price, breakout retracements, higher lows, etc.) Complicated language for the same old edge (which still works). Funny thing about tech analysis is most people gravitate to price...