I never said I was providing anything groubdbreaking here, or that money management is the only answer.
It's just one thing I wish I knew. Chill.
If you could go back in time to when you were a new trader
- Thread starter TheGreatGorilla
- Start date
I never said I was providing anything groubdbreaking here, or that money management is the only answer.
It's just one thing I wish I knew. Chill.
He means that market conditions will eventually change at some point, making most (but not all) strategies not work at some point, for a certain period.
Look at the dot-com bubble for example. Julian Robertson of Tiger Fund was getting his ass handed to him, because he was mostly fundamentals, and his trading strategy (or theory) was to bring stocks (or whatever financial vehicle) to their appropriate price, and profit off of the move.
During the bubble, this was not working (because stupid investors kept inflating prices), and Julian was losing money hand over fist. The people who were making money at the time, were trend traders, who followed daily momentum.
But, eventually the bubble popped, and we all know what happened, so, Julian was right, it just took a while.
Sorry, no. Price is self-correcting. Therefore, if one has a consistently profitable trading plan based on price behavior, his edge will never fail. Never.
As for people arguing about TA and trendfollowing, given that they can't even agree on what TA and TF are, their arguments are not particularly compelling.
I agree completely with 4, 5, and 6.
How does your simplicity deal with the following:
240min has an uptrending 20 ema
60min has a flat 20 ema.
15min has a downtending 20 ema
3min has an uptrending 20 ema
If I had to go back to the first day I'd tell myself not to over trade or cross the spread all the time,churning the account in small ranges. Trade products with good range in relation to spread and commission.
In other words don't have a 10 tick tgt and 10 tick stop .... with a 1 tick spread that is 10% of the trade going to the house not including commission. Don't be a dumby and churn your account making only your broker money.
Unless one has a very robust method on smaller timeframes it is tough to beat costs like the high volume or exchange members and be able to compete on that level. Broaden the timeframe or range a bit is what I'd say.
Keep costs of doing business low.
In other words don't have a 10 tick tgt and 10 tick stop .... with a 1 tick spread that is 10% of the trade going to the house not including commission. Don't be a dumby and churn your account making only your broker money.
Unless one has a very robust method on smaller timeframes it is tough to beat costs like the high volume or exchange members and be able to compete on that level. Broaden the timeframe or range a bit is what I'd say.
Keep costs of doing business low.
Greetings All,
Great Googa Moogaâ¦..as my Sainted Pop used to say when he heard something exceptional. Itâs been said before and Iâll say it again; ET is one hell of a treasure hunt!
And BigHog's missive just proved my point once again. Talk about a true "Gemstone" or âDiamond in the Roughâ. It just doesnât get any better than this!
âDiamond in the Roughâ Definition:
Something that has hidden exceptional characteristics and/or future potential, but currently lacks the final touches that would make them (or it) truly stand out from the crowd.
I hope you come to realize that BigHog just pointed out a real âbiggieâ today, as he has before. And just like a âdiamond in the roughâ, their true beauty as jewels is only realized through the âCutting and Polishingâ process. But as he also pointed out:
âThe answer is well known but is so darn simple many believe it just "can't be that freaking easyâ.
In my opinion, if you are wise, you will pick up this gemstone and get busy âCutting and Polishingâ and make the final touches, so that this gemâs true beauty will be all your own.
If indicators are not your thing, and you desire another similar approach, then I seriously suggest you study and use the DBPhoenix Trend Line,â¦it accomplishes the same thing.
By the way, BigHog also said that: âMere trend lines alone are NOT GOOD ENOUGH for a trend following strategy because trend lines change to freaking muchâ.
I tend to agree! The fact of the matter is that,...mere trend lines will not cut the mustard. However, what DB and his folks are doing with trend lines in his threads, is nothing short of outstanding technical excellence in action, and I've been around the block a while. And the guy even gives the stuff away for free.
Finallyâ¦.words to the wise: âWhen the long-term experiences of multiple people are very similar, I consider applying their ideas to my own life.ââ¦Good counsel........smile.
KDASFTG
Great Googa Moogaâ¦..as my Sainted Pop used to say when he heard something exceptional. Itâs been said before and Iâll say it again; ET is one hell of a treasure hunt!
And BigHog's missive just proved my point once again. Talk about a true "Gemstone" or âDiamond in the Roughâ. It just doesnât get any better than this!
âDiamond in the Roughâ Definition:
Something that has hidden exceptional characteristics and/or future potential, but currently lacks the final touches that would make them (or it) truly stand out from the crowd.
I hope you come to realize that BigHog just pointed out a real âbiggieâ today, as he has before. And just like a âdiamond in the roughâ, their true beauty as jewels is only realized through the âCutting and Polishingâ process. But as he also pointed out:
âThe answer is well known but is so darn simple many believe it just "can't be that freaking easyâ.
In my opinion, if you are wise, you will pick up this gemstone and get busy âCutting and Polishingâ and make the final touches, so that this gemâs true beauty will be all your own.
If indicators are not your thing, and you desire another similar approach, then I seriously suggest you study and use the DBPhoenix Trend Line,â¦it accomplishes the same thing.
By the way, BigHog also said that: âMere trend lines alone are NOT GOOD ENOUGH for a trend following strategy because trend lines change to freaking muchâ.
I tend to agree! The fact of the matter is that,...mere trend lines will not cut the mustard. However, what DB and his folks are doing with trend lines in his threads, is nothing short of outstanding technical excellence in action, and I've been around the block a while. And the guy even gives the stuff away for free.
Finallyâ¦.words to the wise: âWhen the long-term experiences of multiple people are very similar, I consider applying their ideas to my own life.ââ¦Good counsel........smile.
KDASFTG
My experiences align with what you say. I have a PA system that is objectively quantified and I only trade this price action pattern (appears across many time frames but it changes from day to day, meaning the "good" time frames adjust day to day). So far this has been working for almost 15 years. Sure, volatility changes and I adjust my profit tgts to try and maximize profits however the core components of the method havent been altered since late '99.