Quote from jerichomoore:
All that stuff rosy2 just spewed as a "reply" means absolutely nothing. I was hoping for some intelligent and even insightful comment into the BGX system. Maybe I should start with my own experience of trading this method.
I trade the BGX method using a 30 pip filter and achieve a strike rate of about 70%. i.e. 3 out of ten trades stop out at the 15pip S/L
So that leaves 7 out of 10 trades "working" but the big problem is the exit. After a lot of experimenting I've found that this system is generally good for making 15-20 pips. I trade 4 lots and exit 3 of them at 15 pips then trail the last lot using the low of the previous 30 minute bar.
*However* â and I suspect this is where auto-trading this method falls down â it is essential that one actually monitors the graphs at all times. Sometimes the BGX systems puts you onto a winning trade and it becomes obvious from the speed at which the 15 pip target is reached that there is a big move afoot. In these instances it is up to the trader to adapt to make the most of the move. i.e only exit one lot at 15 pips and let the others go on. Or whatever, as long as there is some human input to try to optimise the trade to the market conditions. Conversely, if the market is choppy maybe exit all four lots at 10 pips.
I don't mind making 15 pips â I average 4 trades of 4 lots each per day and if 12 of those 16 lots make 15 pips that's cool. Plus you get the big moves (like today) when you can make at least 50 - 60 pips per lot.
First, everything rosy2 just gave was intellegent, in comparison to your reply. Your reply seemed to be a little snub nosed for someone who was asking for advice and received a sincere eduated response, with technical information.
Second, trading with WMA's alone has been proven to not be very successful, (without something added)<<---- (DISCLAIMER: put this in for the next 5 posters who say it does work). Theres hudreds of threads, studies, tests, and systems available all over the web that support negative feed back to this.
Third, many moons ago, as I see you must frequent the moneytec boards, as a your interest in trading has come about, the bunnygirl system was devised, and popularized, by many newbies. However, as you perfectly exemplified in your post, it doesnt work without discretionary moves., as she traded it The system was automated more times over and over and modified and retried. It was never made profitbale without manual human interpretation.
Fourth, by all means, go ahead, sail away, start your own journal. IMO it will probably be short lived. As, if you are trading live, you will see were this approach falls short, in the manner you are saying you are trading. 70% success rate. HMM. You should fire the guy that backtested it for you.
But, by all means, dont take my word for it, just throw down those 16 lots there cowboy, use dem' WMAs, use your advanced professional experienced discretion and make those 15 pips consistently. Thats the quickest way to learn, btw, words advice, dont borrow money from a mafioso new york loan shark guy to do this. After he gets your hands as late payment, you wont be able to let us know how bad you did.
-secXces
