Simple Profitable Method
- Thread starter trader28
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Nkoi,
thank you for the assistance... admit I still don't seem to get it:
1. The signal is the 5/2/3 Stoch crossing the 50 line, right?
2. You can only know if it has crossed once the 5 min bar is completed
3. You filter this by the 14/3/1 Stoch: so you take only long entries once the 14/3/1 Stoch is above 80 and short ones if it is below 20- you "tape" the Stoch
4. But that seems to leave you only 2 entries, according to attached. What am I missing?
Quote from nkhoi:
better 2 quality signals then a bunch of fail signals, don't you think?
Thanks for your patience.
In general you are correct, of course, but not in this case, unless- as I said before- I am missing something:
- the 2 entries remaining are entry 4 and 10- please refer to my chart and spreadsheet
- Entry 4 has a 2 point gain and entry 10 produced a 5 point loss, so the net total would be -3 point.
Taking every crossover would have produced a +41 point gain.
-the quality signals (#2,8,11) would have been effectively filtered out.
- Jack himself shows about 14 "actions", which I- perhaps mistakenly- took to be trades. He also spoke about "being in the market all the time and making money". Can't see how this squares with taking only 2 selected entries?
Thanks.
Also,
Nkhoi, just from eyeballing the attached chart: I have marked the Zones where- as per your post- Zones to go long or Short are located.
It would seem that the Zones shown might NOT be the ones you would want to perform these actions- but rather the opposite: Hindsight would indicate that you would have fared better by actually looking for the opposite setup in these areas (with the exception of the last zone shown in grey, the zone would have caught the last part of the move).
The filter as you described it more often than not seems to catch the last part of the oscillations, and the market does not continue in the filtered direction but oscillates right back.
Again, still under the assumption that the fault lies with my understanding of what Jack meant.
You are correct about the first short (09:15): it happened before RTH, so I did not consider it. Should I? It closed out at be at 09:40
The second short: see attached: by the time your filter allowed you to enter, the trade would have already been gone.
There was a third short at 10:40, which was closed out at a small loss.
Please see below: that is what Jack originally posted:
So, my impression was that he was not talking about the SCT method (which I am roughly familiar with), but was trying to indicate how the crossover signals (in his case the Stoch 5-2-3 could have been profitable ("each trade makes a profit"), by adding some filters.
Am I wrong to assume that? How so?
Thank you. I use Multicharts. MC does not let me modify these settings. But, if I understood Jack right, MACD has nothing to do with generating or filtering signals in this specific method?
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