My SPM + SCT child

Quote from frostengine:

True SPM alone did great today, and has done great for about the past 3 months actually..

On top of that SPM has done good but not great for about the past year.

HOWEVER, further back than that when volatility was lower, SPM does not do that great. SPM by itself, (by itself i mean a trader who does not have other tools) is a losing method long term. Slippage and comission destroy it.
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SPM by itself (by itself I mean a trader who actually knows how to trade) absolutely obliterates any market that has medium to high trending qualities.

It's not-for-nothing that Trader28 introduced the method on the ER2 ... but any knowledgeable trader can make it work on all but the most untradeable, trash indice (like the Austrialian Dollar, LOL). :p :D

Sorry T28.
 
No reason for the SPM lovers to get their panties in a bunch. The actual system is more like SPM than you probably think. Its just been improved with the help of some concepts from SCT (NOT SCT AS A WHOLE) just some core price action concepts.

This was done, as I said before that if you take all the signals SPM offers then over the long run you will lose money. Whether your a human trader or a machine, you have to use some intangibles to make it work long term. Since SPM is very basic as its name implies, it does not have all the info needed to tell a machine how to properly trade it. Hence where the SCT concepts come into play.

Granted, in its current state my auto trading system is not ideal in that it leaves a LOT of good trades on the table, but it beats the alternative which is long term losing system.
 
In fact, I would think the SPM lovers would like the results. Since it goes to prove that SPM can indeed be profitalbe long term, IF you can filter with price action some of the trades.
 
Quote from frostengine:

Since SPM is very basic as its name implies, it does not have all the info needed to tell a machine how to properly trade it. Hence where the SCT concepts come into play.

Granted, in its current state my auto trading system is not ideal in that it leaves a LOT of good trades on the table, but it beats the alternative which is long term losing system.
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I would belive you if:

a) I thought you actually knew how to trade discretionary.

b) I thought you knew how to code a profitable automated system.

Since neither have been proven to be true I seriously doubt what you are saying here, and it should be taken with a liberal grain of salt.

In fact, to the contrary. Any system which deviates more than 20% from the core SPM concepts as expressed by Trader28 will fail.

Any system which integrates those concepts into its trading (which means as a human, you would have to master it in a discretionary style of trading, or as an automated systems trader, you would have to master it as a human and then master it as an automated systems developer).

Where is my proof to the above hypothesis?:

Very simple ... SPM has been an absolute killer on the short side, and your system shows a net loss on the short side.

Case Closed.
 
Since SPM has fairly rigid rules. Why dont you have SPM autotraded? Why bother manually trading it, if it "never" fails.

If with the rules you have layed out for SPM if it can not be put into a system and COMPLELTY autotraded then that implies that something else is needed FOR A MACHINE to trade it.

That is all this thread is about, is how to make a MACHINE succeed at trading SPM. I have no interest in trading it manually.
 
Quote from MandelbrotSet:

Very simple ... SPM has been an absolute killer on the short side, and your system shows a net loss on the short side.

Case Closed. [/B]
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Shows a net loss on teh short side? Did you miss the very first page of this thread?

Short only:
Trades: 837
Win%: 34.17%
Profit Factor: 1.27
Sharp: .27
Profit; +$17,655 per contract
 
I have been leaving the short side out of the system as I continue to improve it. The performance metrics on the short side of the system is not where I would like them yet compared to the long side.
 
So price action is always right, but SPM is not always right. SPM helps highlight price action. But the rules of SPM is not enough. Need more rules for a MACHINE to trade it. Hence, where some of SCT came from. Its being used as a substitute for the missing pieces that the machine does not see from just the SPM rules.

So why all the grief over this? I admit, if trading manually with some experience you would have no need for the extra SCT concepts I put into this strategy. But don't forget this is a machine not a human trader. And as such it DOES need those rules. At least until I find something better.

EDIT: If you have ideas on how to better decide if a given SPM signal should not be traded, or to look for a quick exit on a signal, or more concret exit rules. Then by all means I'd love to get rid of SCT, but nothing in the basic SPM explains how to filter those things.
 
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