Measuring Trend

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Quote from HATEtheRisk:

@kut2k2
is this a trend ???
It's a noisy uptrend on the right side. This is why a trend quality indicator is needed: to give us some measure of how of a given time-series is trend and how much is noise (aka non-trend). Depending on your trading time frame, you may or may not want to trade in a certain interval because of too much noise. Of course if you're a RTM trader, you will seek out noisy intervals for trading. So for both trend traders and RTM traders, being able to measure the quality of the trend will be a useful trading tool.
 
Quote from SWScapital:

time series analysis works for me
That's a very broad subject area: spectral analysis, ARIMA, GARCH, wavelets, etc. Which area(s) do you prefer?
 
@kut2k2

please what the fuck is RTM Trader, rusty trend master, or what ??
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see picture.....
Would you please prefer this kind of price behaviour ???

This little example is not noisy, isnt it.....
No its quite well behaved and an uprigth little "QUIE" Tprice on his way down the road.

Is this a trend ???
What am i ??
I am a trend....

When is the trend your friend ? Not in the end ?

regards

:D :D :D
 

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Kut2k2,

Just because YOU can not read the indicators does not mean they are any less useful. Does a pilot use more than one indicator to tell him how best to fly the plane. Sure you can fly without indicators but they sure help in a stormy night. You keep believing what you want.

In the end I have shown my methods work. You on the otherhand continue to evade the trade!! Prove your magical single solitary "proprietary" (translation = expensive and he does not know what the F*** it measures) indicator works. Post up a trade with the indicator and its magical powers and how you made 7R on your trade recently....I can provide many more examples. You thought I was talking to talk and in the end I have shown you in no time at all how this can be done. In fact others on this board have already contacted me about it because they see the value of something simple. I have attempted to educate you and others that indicators can be used to guage the market and play appropriate probability trades. Each confirming signal adds to the probability of the trade being in yor favor, but nothing is 100% in life. I strongly disagree that there is one magic indicator that encompasses every piece of needed information. However, I am willing to learn,...again I wait to be taught by you in any trade example you wish. You still fail to show an example trade. Instead all I hear from you are highschoolish insults that inflate your ego but allow everyone else here to see you for a pompous fool....Prove me wrong....POST A TRADE!!!

Put up or shut up!!:D
 
Just thought I would post even more proof!!! LOL. Just checked this today. This is an account I opened a little over 1 year ago. Kut2k2 have you outperformed the market like this?...Doubt it! This is NO JOKE and NO Photoshop....you will just have to take my word for that. I can not provide any more proof than this. Even this is BEYOND what anyone on here would ever do.
 

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Quote from N54_Fan:

I know it was momentum indicator but which one (you never said)? You also do not describe its use. ...

I have included a detailed view of the SHORT SPY trade I took on 7-27-11. The trades in my trend trading system are based off the 60 min chart but no trades are taken unless they coincide with the same BUY or SELL signals on the Daily as well as the Weekly charts. So ALL 3 time frames MUST give the same signal on MACD, Histogram, Stoch, and EMA Crosses. Simple... Nothing fancy!! No pocket calculator required!! Any stock can be evaluated in 1 min or less this way. The short was SPY @ $130.34 with stop at $132.34. Position was covered on 8-11-11 at 115. $2 risk and $15.34 reward. Simple.

I at least have proven what I am saying both with YOUR TRADE on the AUD:USD and on my recent short of SPY. So there you have it...detailed data walking you through a trade. Maybe that will provide some education to you and others that feel these 1970's indicators are worthless. I'm sure you will say that they are still worthless....but in your hands they probably would be.

Only one chart can be posted so the others are on next 3 posts.

Your turn to walk us through a trade....
Here are FIVE (5) trades on the S&P 500 Index in 2011. There is a single timeframe and a single indicator (trend strength aka momentum: log return of a proprietary smoothing of eod data).

Starting with $100K, the final trading equity is $105,055.76, a gain of over 5%.

The buy-and-hold result is $89,435.68, a loss of over 10%.

The results are unoptimized over the cutoff parameters "buy", "sell", "short" and "cover" so feel free to experiment and come up with better results.

This is just to show that a single modern trend indicator in a single timeframe can show a profit and even beat the buy-and-hold.

There is no need for four or five antiquated indicators in three different timeframes to trade successfully. I never said they wouldn't work, what I implied (because I believe it) is that antiquated indicators are very suboptimal.

I am still searching for an adequate trend quality indicator to add to my trading strategy, which should increase the trading profits significantly.
 

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