ES Journal Archive (2006 - 2008)

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A fable.

In the village I grew up in we had an idiot. Hence, the “village idiot”. A basically sweet and endearing lad who craved attention and loved to be at the center of it all. He latched onto groups and was pleasantly tolerated yet when ignored would become boisterous and tease. In his mind he was smarter than the rest. His ego knew no bounds. Despite the fact he had nothing to say, he said plenty of it. Those who knew him smiled lovingly for they knew he was nothing more than an idiot. Those who did not got angry and terse which amused the idiot to no end. And so it went, day after day until the day he disappeared. The village was relieved, good riddance! A collective sigh of relief was felt throughout this hamlet, the gadfly was gone.

Time passed and the village grew cold and gray. Visitors stopped visiting, the chapman’s never came to peddle their wares, the ale in the taverns grew old and stale and the wine turned to vinegar. The crow was the only bird to be found nesting in this borough.

Then one day upon the road leading into the village a man appeared wearing a harlequin suit. Everyone was intrigued with this beguiling figure. Mysterious, yet there was something oddly familiar about him. With his lute he entertained, cajoled, and exchanged stories of mirth. Over time he was found to latch onto groups and was pleasantly tolerated yet when ignored would become boisterous and tease. In his mind he was smarter than the rest. His ego knew no bounds. Despite the fact he had nothing to say, he said plenty of it.

The clouds broke and color returned to the village. Visitors appeared, the village square once again hosted the itinerate peddlers, ale and grog flowed freely, and songbirds filled the air. An ever so comfortable normality returned to the village. It was then that even the coldest of hearts began to smile for they knew the idiot had returned.

But something was lost, the idiots relevance. Over time he learned he was merely a fool. No one listened to him, no one paid him any heed, he had lost the one thing he desired most; an audience. Then a revelation came upon him:

God smiles upon those who smile upon the idiot.

However, to him it made no sense, for he enjoyed the banter and tease. Alas, he was the village idiot.

And so it goes.

Just,

my2cents
 
B1, if you are still around, hopefully you are, 200MA on 10 min seems to be better than your method due to narrower stops between reversals. What do you think? I think it's more acceptable to an under capitalised trader if compared to somebody like yourself.
 
my2cents,

You are a brilliant man...u r not dumb enough to be a daytrader....neither is b1.......i am...romik is....vol is....maybe instead of village idiot we should be called the 3 stooges....romik the eldest, vol, the middle , and porgie the baby of the bunch...no fun, i can't stay...thanks that was very fitting and hilarious...........george
 
Quote from romik:

B1, if you are still around, hopefully you are, 200MA on 10 min seems to be better than your method due to narrower stops between reversals. What do you think? I think it's more acceptable to an under capitalised trader if compared to somebody like yourself.

Could be. The key to that system is small stopouts, so whatever accomplishes that with the eventual winner captured is the way to go. Can you post a chart?
 
Quote from Buy1Sell2:

Could be. The key to that system is small stopouts, so whatever accomplishes that with the eventual winner captured is the way to go. Can you post a chart?

I have tons, today is not necessarily THE example. It's very simple, on 10 min chart a candle closing above or below 200SMA indicates direction of trade, reversal on opposite 200SMA close. Like in your method there are multiple whipsaws at times, but the stops are ~2 on average I would say. It follows 'reversion to the mean' as a dog on a leash.
 
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