Trendfollowers: When oh when are we going to start making some $$$?

Quote from mizhael:
Quote from asiaprop:

I trade a "rotational" trend following system which I developed myself, meaning, it includes and excludes assets based on its most recent trend characteristics...
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I am interested in building such a "rotational" trend following system too...

Anybody has any suggestions?

I can do some backtest and post results here...
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As asiaprop indicated, the key to a good rotational trading system is a good method of ranking the securities in your trading basket, so that you are trading only the top 3 or top 5 or whatever number suits you. The ranks are continually changing ("rotating"), so securities are continually joining or leaving the top ranks and you are entering or exiting their trades accordingly. Finding a good ranking method is no walk in the park but if you can do it, I think rotational trading is one of the most powerful and most underrated trading methods there is.

Amibroker has a built-in rotational trading set-up, excluding the user-defined ranking method of course.
 
Quote from kut2k2:

I am interested in building such a "rotational" trend following system too...

Anybody has any suggestions?

I can do some backtest and post results here...
More...
As asiaprop indicated, the key to a good rotational trading system is a good method of ranking the securities in your trading basket, so that you are trading only the top 3 or top 5 or whatever number suits you. The ranks are continually changing ("rotating"), so securities are continually joining or leaving the top ranks and you are entering or exiting their trades accordingly. Finding a good ranking method is no walk in the park but if you can do it, I think rotational trading is one of the most powerful and most underrated trading methods there is.

Amibroker has a built-in rotational trading set-up, excluding the user-defined ranking method of course. [/QUOTE]

Jack Hershey taught this, and Sydertrader executed it, many years ago.
 
Quote from DT-waw:

trendfollowers will wait forever until some decent trends will bring them money.

instead of making money every week, they wait and wait... and wait.
and when it seems they have finally make it.... the "trend" reverses so rapidly and immensly, they lose again.

only those who scalp, arb, play against the trend=crowd can make profits.

its silly to trade like a trend follower.

do you realize, that if trend following could work- simple moving averages would work?

what is the need for all those PhDs and nobel prize winners in hedge funds?

you gotta make your trading systems hyper sophisticated. 1500 lines of code minimum. high barriers to entry- the only way stay ahead of the game.
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U are being a funny man, I hope. All one must do is write code that allows one the see the fractal nature of markets. Then develop a risk reward profile they are comfortable with.
 
Quote from RCG Trader:
Quote from kut2k2:
Quote from mizhael:

I am interested in building such a "rotational" trend following system too...

Anybody has any suggestions?

I can do some backtest and post results here...
More...
As asiaprop indicated, the key to a good rotational trading system is a good method of ranking the securities in your trading basket, so that you are trading only the top 3 or top 5 or whatever number suits you. The ranks are continually changing ("rotating"), so securities are continually joining or leaving the top ranks and you are entering or exiting their trades accordingly. Finding a good ranking method is no walk in the park but if you can do it, I think rotational trading is one of the most powerful and most underrated trading methods there is.

Amibroker has a built-in rotational trading set-up, excluding the user-defined ranking method of course.
More...
Jack Hershey taught this, and Sydertrader executed it, many years ago.
More...
News to me. Did they disclose the ranking method?
 
Quote from kut2k2:

As asiaprop indicated, the key to a good rotational trading system is a good method of ranking the securities in your trading basket, so that you are trading only the top 3 or top 5 or whatever number suits you. The ranks are continually changing ("rotating"), so securities are continually joining or leaving the top ranks and you are entering or exiting their trades accordingly. Finding a good ranking method is no walk in the park but if you can do it, I think rotational trading is one of the most powerful and most underrated trading methods there is.

Amibroker has a built-in rotational trading set-up, excluding the user-defined ranking method of course.
More...
Jack Hershey taught this, and Sydertrader executed it, many years ago. [/QUOTE]News to me. Did they disclose the ranking method? [/QUOTE]

Yes they did, a set of metrics for picking a stock universe.

http://www.elitetrader.com/vb/showthread.php?s=&threadid=38777
 
Quote from RCG Trader:

U are being a funny man, I hope. All one must do is write code that allows one the see the fractal nature of markets. Then develop a risk reward profile they are comfortable with.
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Oh no, that would make all these PhDs and Princeton grads and nuclear physicists not needed in trading firms.
 
Quote from DT-waw:

Oh no, that would make all these PhDs and Princeton grads and nuclear physicists not needed in trading firms.
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I often wonder what all that hard-science talent has to do with finance myself. Anyway earlier you said that if trend following worked, then simple moving averages would work. The reason why SMAs don't always work is lag. Lag means late signals, which means late getting in and late getting out, which means missing a large part of the trend and giving back a lot of the gains upon trend reversal. Trend following works, you just need better tools than SMAs and other stuff from the 19th century.
 
Quote from kut2k2:

Ah, I guess that makes it like the CANSLIM system: for stocks only. Thanks for the link.
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Correct, C A N S L I M is it's inpiration, but there is more precision for entries and exits. I watched Spyder, in real time, double his account.
 
Quote from kut2k2:

I often wonder what all that hard-science talent has to do with finance myself. Anyway earlier you said that if trend following worked, then simple moving averages would work. The reason why SMAs don't always work is lag. Lag means late signals, which means late getting in and late getting out, which means missing a large part of the trend and giving back a lot of the gains upon trend reversal. Trend following works, you just need better tools than SMAs and other stuff from the 19th century.
More...

Most trader do not know how to use MA's. Averages were never meant to be traded. Price interaction with those averages is what a professional looks at. Moving average on the price charts along with a properly calibrated MACD can pick tops and bottoms, actually. Here is where risk comes in. If you system has ID'd a bottom, how much will you bet?
 
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