How will AHG do in the years when the market recovers (with low volatility)

J

jfw215

Hi all,

I've been studying Anek's system of trading for awhile and have been making great progress. I know the current market conditions are very abnormal and great for trend based trading. I'm a bit afraid if this method will still work when the market recovers and volatility slows down ie 2003-2004. I'd appreciate if anyone would share their experience using trend based trading strategies like AHG in that type of market conditions.

Thanks

JW
 
How about extending the time frame and hold multiple days until the uptrend is no longer intact? Worked very well. It was slower, that's all.
 
Quote from jfw215:

Hi all,

I've been studying Anek's system of trading for awhile and have been making great progress. I know the current market conditions are very abnormal and great for trend based trading. I'm a bit afraid if this method will still work when the market recovers and volatility slows down ie 2003-2004. I'd appreciate if anyone would share their experience using trend based trading strategies like AHG in that type of market conditions.

Thanks

JW
More...

Regardless to any type of trend based trading approach...

If it's dependent upon volatility (rising, increasing or normal) and volatility declines...

It should still work but you should be getting less trade opportunities.

However, if your afraid (concern)...just backtest it (manually or code) on some historical data when volatility was low via whatever you define as low volatility.

By the way, the current market conditions are also just as great for range trading.

Simply, high volatility trading conditions doesn't imply that trend based systems will outperform range based systems.

Mark
 
I know how you feel, 2nd problem is if the market can absorb your 2000 lot orders:D


Lets look at this 6 pt day from 120505.

Can you see the trend, S/R & channels? Would you be able to see the morning reversal?
 

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Quote from BoyBrutus:

I know how you feel, 2nd problem is if the market can absorb your 2000 lot orders:D


Lets look at this 6 pt day from 120505.

Can you see the trend, S/R & channels? Would you be able to see the morning reversal?
More...

I know what you mean man. I guess its still tradable, just less opportunities. Gotta be more patient... this volatility chart shows the trend...
 

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another way of looking at it, attached is the daily range for the SP500 over the last 8 years. During the periods of low vol, the daily range on average was 10 points... That must be tough for a newbie like me... hope I'll be good by the time vol drops...
 

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If you're using the AHG method outlined in that long thread, you should move past it. Anek really doesn't use those methods anymore. Just check out his more recent posts.

I'm working with a friend, who's been using what is basically AHG but with the components that the AHG thread leaves out.

I'm trying to convince him to join ET and start a threat that will move beyond AHG.

It will include what AHG doesn't really talk about, but what Anek, himself, apparently is using.

Stay tuned...
 
Quote from vingbel:

If you're using the AHG method outlined in that long thread, you should move past it. Anek really doesn't use those methods anymore. Just check out his more recent posts.

I'm working with a friend, who's been using what is basically AHG but with the components that the AHG thread leaves out.

I'm trying to convince him to join ET and start a threat that will move beyond AHG.

It will include what AHG doesn't really talk about, but what Anek, himself, apparently is using.

Stay tuned...
More...

Thanks Vingbel

I look forward to your posts.

JW
 
Quote from vingbel:

If you're using the AHG method outlined in that long thread, you should move past it. Anek really doesn't use those methods anymore. Just check out his more recent posts.

I'm working with a friend, who's been using what is basically AHG but with the components that the AHG thread leaves out.

I'm trying to convince him to join ET and start a threat that will move beyond AHG.

It will include what AHG doesn't really talk about, but what Anek, himself, apparently is using.

Stay tuned...
More...


vingbel,

hopefully you can convince your friend to start that thread, so all the AHG members can help eachother to evolve the original method. looking forwad to it....
 
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