Something very simplistic

[Quah]

Originally posted by ANCHOR
Quah,

Congratulations! On both your profits and your good post. Your thread is exactly what ET is all about. Why? Because it's actually about trading! That is a rare find on ET. You started by thinking "out-of-the-box", you posted your thoughts and system on ET, and now you have others starting to think along similar lines. You and your post are what ET is all about. Keep up the good work. I hope your system works over extended periods of time.

Thanks ANCHOR.

 

[aphexcoil]

I'd never attempt to trade 100 lots with this system, if at all. I'm not that greedy. FYI, I traded 1's on weds, 2's yesterday and 3's today. I don't anticipate ever trading more than 20 or so with this, if I get that far. I'll pause at 5 for a few weeks.

I think I can live on 4 points a day on a 5 lot - and sitting in front of the PC for less than an hour total.

If the system holds up that long, why limit yourself?

 

[Quah]

Originally posted by aphexcoil


If the system holds up that long, why limit yourself?

Comfort mostly. No reason to keep going up and up on contracts that I can see - for me, that would be just begging for a disaster.

At some point, enough is enough - no reason to try for more just because you can.

Funny things tend to happen to me when I start getting greedy. Or not so funny.

 

[corvus]

I want to thank quah for adding another arrow to my quiver. This is a really unique approach, and it's refreshing. It wouldn't be what I would always use or even prefer, but perhaps there are days where an approach like this is better for my mindset or the market conditions.

To stretch AAA's baseball analogy a bit, there's a time to hit homers, and there's a time to hit singles.

 

[aphexcoil]

Quah,

If you didn't sweep your account each month, your capital base would grow and, if you increased contracts, you would still be taking on the same amount of risk each time as compared to your net worth (percentage of risked capital would remain the same).

However, it is important to do what you are comfortable with.

 

[ZZZ]

Nice system Quah. Very simple and elegant.

 

[Gordon Gekko]

Originally posted by Quah
That's true if you use stochastics in the "normal" way. What if you only look at them at specific times of the day? At a specific snapshot in time?

quah, can you explain this a bit more?

for others: rtharp said stochastics don't work well in trends. above is quah's response.

 

[Breakout]

Originally posted by AAAintheBeltway


I eagerly await the weekend's backtesting results.

Hey AAA...

Just so you won't be waiting too eagerly, I don't intend
on posting my results. I don't want to appear as though
I'm giving the definitive approval or disapproval of Quahs
idea.

Besides, I'm not using his idea,verbatim. So, it wouldn't
be right to post poor or great results.

But, since you were eager... , I'll send you a PM with
what I ended up with.

 

[Quah]

Originally posted by Gordon Gekko

quah, can you explain this a bit more?

for others: rtharp said stochastics don't work well in trends. above is quah's response.

No, I can't really explain it any more than I already have.

It doesn't really matter if stochastics don't work well in trends. When you make a statement like that, the assumption there is that the stochastics are being used in the "normal" way, and that they are the only thing being used.

This system obviously does care about trend or chop - that's not part of the rules. If we are in a trend at 10:59 that isn't going to change anything about where the stochastics sit at 10:59.

You ever use a kitchen knife as a screwdriver? It doesn't make a very good screwdriver, does it? But it works okay as long as the screw isn't too tight.

 

[aphexcoil]

I do think rtharp brought up a very valid point. There is usually only ONE way someone can use an indicator -- because if you could use it TWO ways, how would you know when to use either one?

If your system relies on the Stochastic being in an oversold position to enter, that oversold position may either signify:

a) A dip of an oscillation period

* OR *

b) A strong trend pusing up

Obviously, the guesswork of when to take the trade has been removed as it relates to both time and money-management. You've already determined how much you are willing to win and lose for each trade -- and you know when each trade is to take place.

That merely leaves a decision of "Do I go LONG or SHORT" at each of these times.

So far, you've been right more than you have been wrong. I'm not sure how you are using the Stochastic or how you are using other indicators, but it will be interesting to see how it performs when the market changes gears and starts running strong again. These past few days have really been somewhat choppy at times.