A couple notes in no particular order on various topics:
- I got some PMs on questions from the last chart on the software etc. First it is Multicharts with IB, and yes I like the combination quite a bit. However I think they are raising their prices from $400 to much higher soon once the next major version comes out that is supposed to make it more powerful than Tradestation. But since I've already paid, I receive new versions for free of Multicharts and going forward my total costs are practically nothing since the feed comes from IB. I'm not using eSignal / Ensign anymore, so my costs drop from about $200/month to $10 per month, and the setup is better IMO. As for the volume chart bars, I compared them side by side with the eSignal / Ensign setup and they are about 99.9% identical. That is good enough for me. Keep in mind if you are doing scalping (for say 1-3 ticks and reading the tape etc) this would NOT be a good setup since the ticks are compressed. That said.. I think new traders underestimate how difficult it is to overcome transaction costs (unless you have institutional quality resources) to successfully scalp but that is another topic I guess. But the bottom line is if you are scalping you are probably better off with true tick / Time + Sales data. For my specific purposes, this setup is ideal, cheap, and has better quality than higher cost alternatives.
- Another person was asking about the oscillator. It is called the "ergotic". The bar colors are based on the same oscillator you see under the chart (hence the colors are aligned vertically). The indicator doesn't come with the program itself (Mulitcharts) though it does come with Ensign. I used an EasyLanguage-coded version of the ergodic for Multicharts. As far as the setting, I am unable to disclose the exact parameters or give the EasyLanguage code away but I believe it is posted a year ago or so in an earlier thread somewhere on ET. Personally I don't think there is anything magical about the exact setting, almost any "reasonable" setting would "work", it is more about the application of the tools, and knowing why they would work in the first place (what are they measuring and why would it matter).
- Today's chart is attached. It reminds me of yesterday a little. The exit is not recommend though, only the entries and stop are even somewhat close to what the method as taught by PL is supposed to be. I'm still learning / developing the method, so this is just my current interpretation. Today and yesterday have been unusually easy to read with the system. Most days are more difficult and/or have losing trades or no trades at all.
- I paid the $300 to learn from PL earlier this year. Between work, school, other trading research, etc. I haven't had time to research his method sufficiently but am starting to get back to it. I think the money was well spent and I have learned more about reading the market. If PL was still offering it, I would highly recommend it to other traders if they were in the beginning stages as I think it gives some great technical foundations. That said I don't think it is a holy grail where a new trader can try to learn the method an within weeks be trading with a sharp ratio of >= 1.5 consistently. I think it is probably more difficult than it sounds and takes considerable time and effort and not everyone will succeed. In other words I don't think it is something where people should expect to walk away with a shrink-wrapped solution that enables them to become trader gods quickly and effortlessly, and I suspect the majority never are able to apply it. This is just my suspicion I could very well be wrong. Still, I would highly recommend it for beginning traders if he was still offering it, again with the caveat that expectations should be realistic. As far as the seminars, I have not attended so can't make a proper analysis/recommendation.
- A previous post mentioned PL changing the settings, etc. My experience is that isn't really true (at least in a negative way). The tick to volume charts was a natural progression and is very much in line with the overall strategy of the system. It would be like if you were playing Doom in multiplayer mode (or any other video game) and you upgraded from a 9600 baud modem to broadband. Yeah.. it changes things but it is really just an improvement, the game itself is fundamentally the same for the most part. I didn't see the tick to volume migration as problematic in the slightest nor incompatible with the system. In addition, I read a complaint that he was changing other core aspects of the system. In this case I also disagree but for other reasons. As far as I could tell he has been trading the system himself consistently, but there were some things he was doing subconsciously that he recently started to notice (and astute students noticed) and has begun to formalize them (incorporate them into the documentation, etc). Again I think this just gets to expectations, I think some students were thinking it is a fully documented closed system where IMO it is a great basis for learning but some areas take experience to apply successfully.
-Taric
<img src=http://elitetrader.com/vb/attachment.php?s=&postid=906778 width=800>
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