Now..., if you read my post correctly, you might have noticed that I was referring to someone else's commercial strategy that others were paying him to lose thousands of their dollars. I on the other hand, I have lost $0 dollars and as far as I have seen, I will not be paying anyone to lose, if that does happen. I thought that journaling was a mutually beneficial action. In any case you are free to not waste any more of your time by reading it, since you appear not to be benefiting from it at this time.
Testing a new strategy
- Thread starter ddav
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To simply post an entry price signal isn't time-consuming or disruptive. 6E is the other instrument I trade and it trades very cleanly and calmly, IMHO.
I've one other question: I'm assuming the system signals an entry price (or at least an entry price zone, give or take a few ticks). Does the system suggest or assume a protective stop loss for each trade? For example, for a 6E trade that is signaled, what is the protective stop you use? If it's a variable amount, what is the maximum protective stop on any given trade?
Nod....., thank you for the correction. It is 6E and not E6. It is a strategy. It is a trading tool. The "System" that everyone is referring to is the "Trader". That happens to be me at this time. I must admit the "System/Trader" needs practice/work.
Monday 11-29-10..........................................8 points.
Tuesday-Friday no trading.
I have been having problems with computer. It looks like someone/thing has gotten into it. Had problems with XP and went to 7 with better security, but despite this and only connecting to brokers/broker referrals and this site, it seems to be happening again. I am turning it over to the experts, since XP wasted months of time fixing it.
The strategy has been an eye opener. I have been looking at the 6E and realize that it would be as easy to play with the strategy as the TF or the ES. TS profit report for last week yielded 555.23% AROR net and ES yielded 845.36% AROR net this last week. I think that translates into about 350 ES points for the week and 70+ TF points for the same week. I think it will take me some time to match the strategy. It is faster than me and obviously takes more trades than me.
The strategy issues real time signals that are either buy or sell. It is up to the Trader to place orders off the real time signals and manage them as you feel comfortable. That is what I will need a lot of practice/work. In the mean time, I have been enjoying seeing the market as the "professionals" must be seeing it. Organized and to the tick. It really gets me captivated to be able to see why it goes to one tick then stops and then goes to another tick. All outlined to the tick on the screen and in real time and with real time signals being issued. Now I must learn how best to play the signals. The strategy does not use stops and I only use profit stops and because of that and a bouncy market and my desire never to lose, I get stopped out too many times for too small of a profit after which it then goes. I need a lot of practice with this.
Monday 11-29-10..........................................8 points.
Tuesday-Friday no trading.
I have been having problems with computer. It looks like someone/thing has gotten into it. Had problems with XP and went to 7 with better security, but despite this and only connecting to brokers/broker referrals and this site, it seems to be happening again. I am turning it over to the experts, since XP wasted months of time fixing it.
The strategy has been an eye opener. I have been looking at the 6E and realize that it would be as easy to play with the strategy as the TF or the ES. TS profit report for last week yielded 555.23% AROR net and ES yielded 845.36% AROR net this last week. I think that translates into about 350 ES points for the week and 70+ TF points for the same week. I think it will take me some time to match the strategy. It is faster than me and obviously takes more trades than me.
The strategy issues real time signals that are either buy or sell. It is up to the Trader to place orders off the real time signals and manage them as you feel comfortable. That is what I will need a lot of practice/work. In the mean time, I have been enjoying seeing the market as the "professionals" must be seeing it. Organized and to the tick. It really gets me captivated to be able to see why it goes to one tick then stops and then goes to another tick. All outlined to the tick on the screen and in real time and with real time signals being issued. Now I must learn how best to play the signals. The strategy does not use stops and I only use profit stops and because of that and a bouncy market and my desire never to lose, I get stopped out too many times for too small of a profit after which it then goes. I need a lot of practice with this.
Nod......, if you would go to the pictures I posted on original thread you would see the horizontal arrows on the charts. These are the real time signals that the strategy places on the chart and all are real time. Trade station then uses these signals to produce the profit reports that I have posted. I have done the objective data posting of the strategy results on the TF, ES and YM, because those are the only ones so far that I have run objective profit reports on during this testing period. I have set up other markets to see if they behaved the same as these and they do, but I haven't run the objective tests on them yet. The ES objective results as posted for this last week were about 70 points per day, if I did my math correctly. This may be higher than an average week, but I have not had time yet to determine what is actually average for the strategy. The TF postings for Fed day were also higher than average so far and that would be expected , since more volatility means more points to be made. I do not yet know what would be average for the 6E, but I think it would probably be somewhat in the range of those that I have already posted. If and when I find the source of the computer intrusions and then fix them, I will proceed on practicing trading off the signals. With weeks like this last one where the strategy yielded about 70 ES points per day, I still do not think that it is possible to have a loosing day with the strategy, if one used simple common sense money management of the signals and that is probably true of the 6E. The strategy has remained tick accurate throughout this testing period. I do not know how the developer managed to get the strategy to constantly adjust to market action like this, but so far during this testing period, it has remained tick accurate each testing day without exception and on all tested markets.
ddav, I have a price action strategy I use to trade CL which produces significantly more winning trades than losing trades, and there are fixed rules for managing the trades, including a fixed stop loss no larger than $150/contract. If I wanted to sell an automated version of this strategy, I would start a thread and call my trades in real time with an entry price, protective stop and initial price target, and let the results attract customers, or if I wanted to charge a subscription for a trading room, tweets, etc., I'd offer a two or three day free trial and do the same.
You are presenting a system that signals trades, but uses no stops. That is an unusable system to me and should be considered unusable to any trader.
A system or subscription service should present entry signals AND rules for trade management, including initial stop loss (price at which the signaled trade is invalidated) and price target zone, as well as rules for if, or when, to move a stop to break even, and when to stop out early and reverse the position.
Any one or any system can signal a potential trade. It's the trade management rules that make a system successful and if there are no concrete rules, then the system is incomplete.
That's my opinion.
You are presenting a system that signals trades, but uses no stops. That is an unusable system to me and should be considered unusable to any trader.
A system or subscription service should present entry signals AND rules for trade management, including initial stop loss (price at which the signaled trade is invalidated) and price target zone, as well as rules for if, or when, to move a stop to break even, and when to stop out early and reverse the position.
Any one or any system can signal a potential trade. It's the trade management rules that make a system successful and if there are no concrete rules, then the system is incomplete.
That's my opinion.
Nod......, thank you for you excellent summation. I guess that is why it is called a strategy and not a system. The strategy is designed so that it does not need stops. It is profitable as designed as per Trade station profit reports and my profit journaling above. (maybe that makes it usable?) My journaling does take into consideration a stop as described. It is an unusual strategy in that it is designed to make this profit range stated above without the need for stops. I stated that I was not a very good trader, but with this strategy I haven't experienced a loss and I am working on improving the "system" of making money using this strategy. Yes, I may have a long way to go, but at least I think I may be working with the best strategy out there that I will ever come across. The strategy does not need stops to make money and the strategy itself is its own money manager. It appears to be designed to follow the market movers (bankers that make $100,000,000/day in the market) at the tick level and execute when they execute. Since they never loose, the strategy basically never looses. It is a banker/broker/arb game and this strategy seems to latch onto the winner of this game and follow them at the tick level. I do not know how this was designed into the strategy. All I know is that it is tick accurate on my screen each and every day. Now I will try to learn how to incorporate rules that best play these signals. Thank you for your suggestions.
Nod...., thanks. I sense skepticism. Now I have no proof of above statement, but it does appear on my screen to be the case. Take Friday as an example. The first sell signal I got was in the pre market. Just before the announcement. I clearly had marked on my screen the exact tick that had to be broken if the market was to go up. It hit that tick with the announcement. Not 1 tick above. The next signal occurred at about 7:55am cst that corresponds to 744.3 in TF and the low for the day was 744.20. 744.4 was my take profit line for that trade. 755.70 was the take profit line I had on my chart for that buy and I got a sell signal above that line at 757.40 in the TF. I know that because it is still on my chart today. All bright and highlighted by the strategy. Could not miss it if I tried. The high for the day was 757.50. Now tell me that is coincidence or possibly the strategy is actually following the market movers. In any case it makes money without using any stops.
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