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I use this screen for trading the emini Nasdaq Future
- Thread starter Jeanmichel
- Start date
He never mentioned what he was using Parabolic for.
With the stop losses - it was kind of a trailing stop loss system (proprietary to Metastock Pro), but he never explained how it worked. Also, the way I understood him, he did not always rely on his trailling stops to be taken out at a profit, instead he tried to pick the point of maximum profit and get out at that point. Somebody mentioned MFE (Max. Favorable Excursion). I think that was the best exit point for him.
when you say 'confirming market' - do you mean 'outperforming' on relative basis out of the two or three? If so, I have been trying to do something similar. But that's a good entry not an exit strategy.
have you tried going long the 'outperforming' market and shorting the underperforming? that could be a nice hedge, if and when it worked. remember, dow is up ~ 4%, while COMPX is down ~6% and NDX is down ~9% for the quarter. of course, you can get royally screwed when NDX shoots up and Dow goes down.
With the stop losses - it was kind of a trailing stop loss system (proprietary to Metastock Pro), but he never explained how it worked. Also, the way I understood him, he did not always rely on his trailling stops to be taken out at a profit, instead he tried to pick the point of maximum profit and get out at that point. Somebody mentioned MFE (Max. Favorable Excursion). I think that was the best exit point for him.
when you say 'confirming market' - do you mean 'outperforming' on relative basis out of the two or three? If so, I have been trying to do something similar. But that's a good entry not an exit strategy.
have you tried going long the 'outperforming' market and shorting the underperforming? that could be a nice hedge, if and when it worked. remember, dow is up ~ 4%, while COMPX is down ~6% and NDX is down ~9% for the quarter. of course, you can get royally screwed when NDX shoots up and Dow goes down.
Originally posted by sasha1
He never mentioned what he was using Parabolic for.
With the stop losses - it was kind of a trailing stop loss system (proprietary to Metastock Pro), but he never explained how it worked. Also, the way I understood him, he did not always rely on his trailing stops to be taken out at a profit, instead he tried to pick the point of maximum profit and get out at that point. Somebody mentioned MFE (Max. Favorable Excursion). I think that was the best exit point for him.
when you say 'confirming market' - do you mean 'outperforming' on relative basis out of the two or three? If so, I have been trying to do something similar. But that's a good entry not an exit strategy.
have you tried going long the 'outperforming' market and shorting the underperforming? that could be a nice hedge, if and when it worked. remember, dow is up ~ 4%, while COMPX is down ~6% and NDX is down ~9% for the quarter. of course, you can get royally screwed when NDX shoots up and Dow goes down.
You wouldn't know where the MFE is until too late, hard right edge.
Yes, that is the entry, contrary to the random entry theory, we care more about strong entries, less risk, if your wrong, scratch. We scratch about 55% of all trades.
We have spread like your describing, works most of the time, but when you are wrong, you are really wrong.
Originally posted by metooxx
No, what did he say?
I'm going to summarize because there is too much to quote verbatim. But the info I am looking at is on p 160-161 of the paperback.
He talks about using dozens of systems, diversifying by using multiple strategies and by trading those strategies in multiple timeframes. He uses automated systems for about 50% of his trading but uses his discretion to time the entry/exit.
When asked how he would fare if he mechanically traded his signals he answered:
It's very hard to say, but if we blindly followed the systems we might make half of what we do now. Maybe even less. I could give ten CTAs the exact systems we use, and some of them still wouldn't make any money.
On page 158-159 he says he saves 6%/yr in reduced slippage and 6%/yr by paying lower commissions than everyone else. When taliking about how he explains his success as a trader he says:
(A) We do good research, so we have an edge. (B) We have a rational, practical approach to money management. (C) We pay very low commissions. (D) Our executions are among the best in the business. (E) Most of the people who work here keep a large portion of their net worth in the fund we manage. Personally, I have over 95% of my net worth in the fund.