SPM Boot Camp

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Quote from jack hershey:

Jahagee:

Here is an illustration relative to how you have MACD tunned to price.

You can use any of the three trading techniques cited but the gold version would be the quickestup grade to a good multiple of the ATR daily. And you probably can script it easily as an ATS for many markets.

If you decide to move up to the green level (past beginner level), you must stop the MACD bridging that you current MACD causes.

Have fun.

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Jack:
I respect you. I've been around the block, many times. Thus, you will understand when I tell you I have seen and read your posts in several other sites over the past decade or so, maybe even before that because I have been in the markets for just over 16 years. Once, I copied and pasted all your posts in a forum (forget which one) and printed it like a book. But, it was too subjective, couldn't grasp it, was not specific enough to trade.

Nothing against you, no hard feelings, but I don't want to waste time on ambiguous obfuscated chat. I have developed several systems over the years and if I have the time I can develop many others but then I would not have the time to trade. I am open to ideas, but I want specifics --- clear, unambigious method, step by step, with specific parameters, well-defined exits etc. I don't want to waste time on testing stuff that is not specific and that cannot be refined to be tested, with optimizable parameters. Like I said before, I can do that with several ideas I have but I just don't have the time for that!

Thus, although your ideas are fine and I am sure others may use it profitably, it is not what I want at this stage of my trading career. I have little time to spend on testing and developing systems and so I filter out anything that I can't refine. Unfortunately, your system is in that category.

If you want to be more more specific, with step by step logic so I can code it in EL, and with entry and exit parameters that I can optimize and backtest then I may look at it and backtest. But, my time is too precious to spend on subjective chat.

Now, I spent over 5 minutes writing this, precious time of me after a hard day, but I did that because I respect, you been in there for a long time and I know you have decades of experience. Wish you could get into more specificity and develop trading systems from the ecperience and logic you have.
 
Quote from Jahajee:

ES 5m data JUNE to OCT 2008
1-lot position size; Capital 10,000
Commission $5; Slippage $12.5 (Slippage & commission total $35 per trade)
141 trades, Profit 18,400 ---> 184%
Allowed discretion on stops and profit target with wide stop and profit target @ $2000 each
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Thank you for your objective analysis of the system's performance as described in this thread Jahajee.

Your automated back testing shows definitively that the system's rules are solid and work in real-time trading the ES ... or any other instrument for that matter.

Regards :)
 
Quote from frostengine:

What are the exact entry/exit rules you used? I have tried backtesting this several times based on how i understand the rules...and get I negative expectancy every time...
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Note that was just 4 months ( only ESZ8 data, don't have continuous or historical data in this computer).
12, 26, 9
MOC exit so it's day trading;
Stop loss and Profit target $2000 (I wanted let it run and look at the trades - but a better exit can be obtained with logic such as MACD crosses above below zero, momentum indicator turns up or down, 5/34 oscillator crosses above or below zero; or close crosses above or below a simple MA, or a 5-bar low or high is made contra to position etc etc etc)

EL code below:

Code: 
inputs:  Price( Close ), FLength( 12 ), SLength( 26 ), MACDLength( 9 ),   Stop$(600),  Profit$(400)  ;

variables: MyMACD( 0 ), MACDAvg( 0 ), MACDDiff( 0 ) ;


//=============== MACD values ============================ 
MyMACD = MACD( Close, FLength, SLength ) ;
MACDAvg = XAverage( MyMACD, MACDLength ) ;
MACDDiff = MyMACD - MACDAvg ;
 
//------------------------------------------------
// Ignore MC canned logic 
// if CurrentBar > 2 and MACDDiff crosses over 0 then { CB > 2 check used to
// avoid spurious cross confirmation at CB = 2 (at CB = 1, //MyMACD and MACDAvg will be
// the same) }
	 
//===========================================
 
// BUY
if time > 930 and time <= 1600 and 
   MyMACD crosses over MACDAvg and  
// MACD crosses above MACDAvg
   MyMACD > 0 and MACDAvg > 0  then  
// both are above zero line  
    Buy ( "MACDb" ) next bar at market ;

// SELL SHORT
if time > 930 and time <= 1600 and 
   MyMACD crosses under MACDAvg and 
 // MACD crosses above MACDAvg
   MyMACD < 0 and MACDAvg < 0  then
  // both are below zero line 
   Sell Short ( "MACDs" ) next bar at market ;
	

 //	STOP LOSS & PROFIT TARGET exits
 if time > 930 and time <= 1615 and 	
    BarsSinceEntry >= 1 then  // don't exit same bar as entry
        begin                             
        SetStopLoss(Stop$);   // DollarValue stop
        SetProfitTarget(Profit$);   // DollarValue profit target
        end;  
	
	
// CLOSE open positions with  MOC orders	
if time >= 1605 and marketposition = 1 then 
     sell ("sMOC") next bar at market; 
 
if time >= 1605 and marketposition = -1 then 
     buy ("bMOC") next bar at market;
 
Quote from sandygray66:

Did anyone answer the question on how to exit?

Entries are easy......exits are the tough part that determines profits or losses.

Or is this another always-in strategy that generates 3x total daily price range like SCT does? :D
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there are two adjustments for the exits to be done.

1. you have to apply the zero line crossover correctly.

2. you have to have the data on the indicator window.

To do the signal correctly you add a word: histogram. This is how it reads: Reverse on the zero line histogram crossover.

To add the data to the indicator window of MACD, you add the "histogram".

If you wish you can iteratively refine the MACD to its post PC default which is 5 13 6. When you do that the MACD becomes "tuned" to the electronic data flow era.

The money a beginning reader can make comes more from adding contracts from profits than having an scripted ATS of the above and challenging revisions.

Having an ATS on a beginner level MUST include "tuning" or a lot of profits will be given up in the midday on occassion.

I know the elphant in the room is deaffening regarding screwing up not using the signal in the right place and omitting the data for the signal.

This all can be attributed to learner error.

Making the changes is one difficult thing because it involves following instructions which were provided by pm two years ago to not embarass the learner at that time.

Making the changes now is probably too late for this person. He cannot step up and do it. He is too interested in being right than being very very rich.

Skipping MACD is a good idea because it is limiting in terms of going beyond beginner.

You can see that a person has posted 184% form JUN to OCT. That is a good beginner peformance using indicator and their signals.

Here SPM doesn't post the data and doesn't apply the signal correctly.

Two easy things to overcome when you step up and correct your errors.

When done SPM will work for anyone anywhere in the world. If they use it they can help others with their time and new profits.

overcoming OCD is a lot more difficult and OT for this thread.
 
Quote from frostengine:

What are the exact entry/exit rules you used? I have tried backtesting this several times based on how i understand the rules...and get I negative expectancy every time...
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you have two errors.

1. the 5min chart has to have the MACD tuned to it. Use 5 13 6 for the MACD.

2. If you are using the stated SPM signal, you will not make money.

You have to change the SPM signals to: zero crossover of the MACD HISTOGRAM

To use this correct substitute instruction you have to have the histogram data. It is the difference between the values of the fast and slow lines.

This will get you started and it also moves you from beginner to advanced beginner since the trading ratio of the screwup to the correct is abour 2.6 to 1 and there are no longer any losses.
 
I'm just here briefly to turn SPM into a money maker for beginners.

Two small things had to happen on the MACD.

1. Correct the signal, and

2. Tune the MACD to the price chart.

A guy named Trader28 couldn't get this straight in PM's sent to him when he was first staring out after subscribing to a training service he gave up on.

Maybe others will this time around.

I have changed my mind about him; I do not mind if he is embarrassed by his mistakes and not taking good direction.
 
Quote from jack hershey:

I'm just here briefly to turn SPM into a money maker for beginners.

Two small things had to happen on the MACD.

1. Correct the signal, and

2. Tune the MACD to the price chart.

A guy named Trader28 couldn't get this straight in PM's sent to him when he was first staring out after subscribing to a training service he gave up on.

Maybe others will this time around.

I have changed my mind about him; I do not mind if he is embarrassed by his mistakes and not taking good direction.
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Thank you for making a fool of yourself in front of the entire readership of Elite Trader Jack.

You have nothing to say of any real substance, and when your (unprofitable) SCT Method was upstaged by Trader28's (profitable) SPM Method you couldn't wait to come running and trying to get your geriatric foot in the door.

I'm going to enjoy the coming days of SPM Boot Camp. :D
 
Godzilla... i'm just a bit confused... let me make sure this is 100% correct:

Look for BUY WHEN:
MACD Line >0 AND MACD AVG Line >0

Enter BUY when above is true AND MACD LINE crosses above MACD AVG Line

reverse the above for shorts..

Is this the correct entry signal?
 
This Zero line cross thing keeps getting thrown in.. does this mean only enter teh trade when the MACD Line crosses the Zero Line and the macd line crosses over the macd avg line.. such as all happening at the same time?

Or was my post a moment ago correct?
 
Quote from MandelbrotSet:

Thank you for making a fool of yourself in front of the entire readership of Elite Trader Jack.

You have nothing to say of any real substance, and when your (unprofitable) SCT Method was upstaged by Trader28's (profitable) SPM Method you couldn't wait to come running and trying to get your geriatric foot in the door.

I'm going to enjoy the coming days of SPM Boot Camp. :D
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You may wish to look at the gold theme on this chart.

Who cares if you do not.

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