Advice from the experienced

I've been at this a while. Also, I've been using Tradestation even started with their SystemWriterPlus in I think 1988.

I've been down the road with fancy, complicated, systems that relied on "rocket science" math. I put in many hours looking at almost every system printed in TASC. In short, I busted my hump at the computer. Also, I've read somewhere around 50 books on trading. I almost joined the "3000" club by purchasing an expensive system. Did not do it, but I did join the "300" club by buying a less expensive system that was trash.

After about a year of this and not really finding anything that worked to my liking, I had a discussion with my father not about trading but about baseball players in the Hall of Fame and who our favorites were. His favorite was "Wee Willie" Keeler, sort of an average guy who worked his butt off on the little things. His motto: "hit 'em where they aint."

That is what lit the light in my head. So now, I trade things most people will not consider. Currently these are relatively low cap stocks using simple TA.

I've found that my "edge" is not how I trade (ie-the system) but what I trade.

Doug S
 
Quote from dougcs:

That is what lit the light in my head. So now, I trade things most people will not consider. Currently these are relatively low cap stocks using simple TA.

I've found that my "edge" is not how I trade (ie-the system) but what I trade.
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That was interesting, thank you Doug S.
 
Vanilla2,

I too am just getting started, and am a bit slow to process - well, IMHO and IMO abbreviations for example. I have been working with AmiBroker for about two months and learned the coding via trading systems in Teresa Loe's Trader's handbook (not sure if that name is correct). Doing this not only helped me learn the code and how difficult it can be to translate a few simple rules into an automated system, but inspired me to do some tweaking. The 4-6 Bar Rule was a wash, mostly because it was my first attempt and I never quite got the code right. Next I tried the "Holy Grail," which was simpler - a scalp based on ADX and EMA rebound. I haven't translated the system to real-world trading yet but atleast it is profitable in the backtester. I could go on, but for brevity sake, while tooling with this system I have been following one stock. No systems or indicators per se, very little in the way of "fundamental" study, mostly just watching the 5-min, 10-min, Daily, etc. charts. After having had some early success, followed by some not-quite-so-early failures and broker problems I am back in black so to speak.
The moral of this all is that I have not given up on the system developement but feel I have learned a great deal more simply watching and trading one stock. My account was small and still is but I have a much better feel for what is going on with the market. I played poker too so I know what it is to play with and against the odds, go on tilt, get rattled, and be in the zone. I have had none of those experiences typing Iif(Cross(MA(20),C) AND ADX(14)>25,1,0)...
 
Quote from rlb21079:

I played poker too so I know what it is to play with and against the odds, go on tilt, get rattled, and be in the zone. I have had none of those experiences typing Iif(Cross(MA(20),C) AND ADX(14)>25,1,0)...
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If you're looking for thrills, that's what you'll get. Successful trading is boring.
 
Quote from traderkay:

If you're looking for thrills, that's what you'll get. Successful trading is boring.
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I forgot to mention that when "in the zone" occurs (as experienced by myself on the athletic fields and at the poker tables) it is not thrilling. I have not pinned down an exact definition of what the zone is exactly, yet, but have a few descriptions: Relaxed Concentration (see: The Mental Game of Baseball), nearly meditative, pure focus, etc.

Thrills are for craps players - the profit is in small percentages, which are not exciting in the classic sense. It is however very entertaining to watch someone sit down with a stack of chips, leave with none, and know you have caused their downfall.
 
links,

thanks so much for your ideas regarding channel breakouts, I've been trying to code this so that the signal is taken from COMPX and executed in QQQ, with one prob. That beautiful equity curve flips totally upside down. Also having difficulty translating the 1 point stop from a channel breakout in COMP to a stop in QQQ. Do you use the stop on this strategy?

thx!!

v2
 
Quote from gnome:



Well, but just a little. The last several months have been choppy and indecisive. That enviroment is going to be difficult for almost everybody. Those who are looking for "strong indication" don't get it, and most of those who trade heavily are making it one day, giving back the next. There's an old Wall Street saw... "Nobody makes money in a bear market". Not 100% true, but more so than not.
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Not True!!

Dragn
 
Quote from CalTrader:



A month is not enough time: you are expecting instant results. Rather, expect something like a year before hitting upon some sound ideas and have the capital to fund yourself for at least that long ....

If you are just starting out, stick to a few liquid indexes or stocks before jumping to other markets like futures...

Profitable semi-mechanical systems can be built but it takes quite a bit of experience to do this: Dont expect to construct something easily: even if you have already done this for financial firms and / or trading houses it really takes years of experience to know how to do these. FYI: nobody will share a working system with you ...

Be careful with advice on this board. There are only a few experienced people posting here. Your best bet is to hook up with a mentor and work directly under their guidance as an assistant trader if you have not yet had the experience ...
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Agree. :)

Dragn
 
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