Marty Schwartz
- Thread starter martys
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Quote from iceman1:
thanks for starting this thread...
I had Marty's book sitting on my shelf for the past 3 years and never read it. But after perusing your thread, I just read the book over past 36 hours... couldn't put it down. Great stuff! Would love to meet this guy.
IcE
Me too. Maybe we should go to the horse races in Florida?
Hi Guys, I am going to stop reading off the book for now and change the pace a little. Would anyone care to discuss if they have researched into Marty's methodology? I will begin with http://ttheory.typepad.com, Terry Laundry's site. Marty said he derived part of his methodology using Terry's indicators, particularly the Magic T short range oscillator which tracks the difference between the long term advanced/decline volume and the short term advance/decline volume. Terry locates central short range T (his inflection point) using trend line break on his oscillator. He find after a period of cash accumulation (right side of the central T) will follow a period of speculation (left side of the central T) with the same duration. He also has use proprietary adaptive channel (similar to Bollinger Band) to quantify quantum energy levels in which the S&P price will bounce about. In Marty's book Pitbull, he mentioned using channel (1 percent above and below 10 period exponential moving average) which seems to have root in Terry's technical work (I know the moving average envelop has been around for ages but the setting seems to come from Terry's work). Marty pulls trigger when he think the rubber band stretch too much. But I am sure it is more than that because he is a very short term trader who comes in with a bias based on the Magic T short range oscillator and the 10-day exponential moving average (also come from Terry's technical work). So it still looks like smoke in the air. In fact in one of Courtney Smith's interview, he mentioned he sit next to Marty for six months, heard his explaination, try to trade like him and end up losing his shirt. Another aspect is that he is a true Marine, and I personally do not have the discipline and often fall into the gambling (revenge) mentality and end up dead. Case in point, if you read the book, looks like a lot of time Marty use mental stop and I don't think I have the kind of mental toughness to honor mental stop. Please input any of your thought and research on Marty's trading. I really want to start a meaningful discussion and pull together all our experience. Thanks.
Gerald Appel on T theory http://www.systemsandforecasts.com/Article_of_the_Month/Jan03.pdf
Rereading this thread, I was struck by the respect and admiration people have for this guy. Maybe it's because he never tried to cash in with seminars, a chat room,etc. His book has an honesty that can't be faked. Anyone who has ever been sandbagged in some office intrigue can appreciate the Great Pyramid story. I can still hear Marty repeating his order to himself before he first went on the Amex floor, and if you've ever traded, just reading it you're as nervous as he was. And anyone who has traded the big S&P can recognize a true master at work. Great stuff.
The whole point of Magic T Theory was to recognize that the big money comes from trading with the wind at your back, ie with the major trend. Another crucial insight was Marty's statement that he made the bulk of his money on maybe 20-25 trading days. The rest tended to be a wash. For most of us, it's the opposite. We do ok most of the time, but let things get out of hand once or twice a month and it kills our results.
The whole point of Magic T Theory was to recognize that the big money comes from trading with the wind at your back, ie with the major trend. Another crucial insight was Marty's statement that he made the bulk of his money on maybe 20-25 trading days. The rest tended to be a wash. For most of us, it's the opposite. We do ok most of the time, but let things get out of hand once or twice a month and it kills our results.
I agree that the Magic T oscillator just shows you when the buying volume are coming in like any volume indicator.
Most guy out there just try to sell you hopes with the exceptions of very very few. Actually paying for dumbo feather may be a necessary evil, but it is the wrong kind of expectations they implanted in your head that really get you killed. From all the trading, reading, buying, watching, researching and help from one other genuine kind trader, I concluded Marty might have really revealed his secret in his book. This is just my opinion, I think his secret (besides honesty) is his continuous probing for the inherent characteristics of the market. Based on his own understanding of the market, gambling, probability and himself, he is able to piece together strategies entirely his own out of hard work and intelligence. When I piece together my first trading strategy based on observed market characteristics and my own psychic makeup instead of just throwing a bunch of holy-grail indicators together like every book, I felt like I finally got something from Marty. Again just my opinion.
are very good friends. mark is a great trader and has some excellent trading methods he teaches to incorporate with your own trading strategy. if you read pitbull, then you know he made reference to mark cook and his work. www.markdcook.com