Gann Theory Chat
- Thread starter WDGann
- Start date
Gann,
Did you see the section of the site devoted to my "Glass Bead Game"?
Quote from trend456:
Thanks NK,
I'll let Takeshi do the rest on the chat. I've seen him trade personally and he's a better trader using Gann. He's not a lazy quitter like me.
Well.....I still think I'm a better trader.
Just Kiddin'!!!
Good Luck with the Chat!
Trend
LOL... as a trader... yes... you're a better trader... hands down...
I won't deny that, bro...
WDGann
PS. You should stop coming to ET and get back to work... LOL...
The Gann material that I have is designed to keep the trader from overtrading, IMO.
For example:
If we were using all of Gann, first we would need to make a yearly forecast for 2003. That would mean looking at 90 years of data at 90, 70, 50, 30, 20 and 10 year intervals. That alone would take days.
We would need to take a note of the hi, lo and range of the last move of significance, which would be 52 weeks, along with the volume. Time would need to balance price before we trade.
We would need a definite indication of a change in trend before we trade. That means price would need to trade above the midpoint of the bar prior to it on the weekly chart or price would need to break a prior top or bottom.
We would need to consider the angles that price is aspecting off of.
We could only risk 10% of available capital on any one trade.
And that's just what I remember off the top of my head.
If we follow all of those rules, the finanicial instrument is bound to be in a technically strong position for whatever direction we are trading it, and it would be virtually impossible to overtrade, which is why most traders lose money. Success would be virtually assured
Quote from oddiduro:
If we follow all of those rules, the finanicial instrument is bound to be in a technically strong position for whatever direction we are trading it, and it would be virtually impossible to overtrade, which is why most traders lose money. Success would be virtually assured
No, if you followed all those rules your win rate would be like 40% or something but not 90%. But yes, it still would be profitable, just not as profitable as Gann himself.
I coded the mechanical trading, (basically a trend following system) and got a similar performance. I think it was 42-3% profitable and 2.1-2.4 Risk/reward. The main problem with the mechanical trading signal in itself is the maximum drawdown. I think I had 30-40% DD with 2% risk...
I would say it's an average trend following system.
I would say it's an average trend following system.
