Originally posted by toby400
Some interesting articles ( Four Links Down - 14 free lessons) concerning trading with Fibs. and Gann thingies.
http://www.fibonaccitrader.com/
The articles are free. The software is not. I have no comment on the software , nor is this post an invitation to try the software.
Toby
Comments:
What he uses is true. Gann does mention Mechanical Trading Methods that uses trend indicator. Gann doesn't call it swing charts, he calls them 1 and 3 day trend indicator. What Krausz is doing is taking the 1+3 indicator and putting other indicators to filter out bad signals.
If you test only the 1+3 day indicator, without money management, it's usually close to breakeven, after testing mulitple symbols(some are profitable, some are not). So what he did was take that breakeven signals along with the name Gann and put filters in them to make them profitable. It's a Gann based system. It's not really a secret or revealed. He should have said, "Using Gann's 1+3 day trend indicator as a base, I've put filters in them to make them profitable. I also use Fibonnacci ratios with price to reduce the risk and give a good marketing to these Gann and Fib enthuthiast."
Will it work, I think so. I'll rather look at the filtering part. But using moving averages with the trend indicator also turns the system into a positive expectancy. With money management and position sizing, it will be a profitable system.
Another thing I would like to add is. There's two parts to Gann. There's the analysis part which is the angles, % resistance level, time period, and astrology. The other part is the trading part which is the chart pattern(double and triple top/bottom, etc.), breakout, mechanical trading method, and some trend following trading (When makes a higher high, buy it and trade the trend). The trading aspect and analysis aspects are 2 different entities.
Now, how it worked was, Gann does the analysis part and tells them whether the particular symbol's trend is up or down with his newsletter. He tells the clients to confirm that on their own with the trading rules or mechanical trading method to decide whether to trade. In another words, you have to be a newsletter subscriber to win using these trading technique.
Marketing? Yes.
