What was the random entry/chandelier exit study?

[EliteThink]

Quote from danielc1:

Random entry system and a atr stop. It was teached by chuck lebeau, van tharp and some others...

It is used to prove that entry is not so important then having a solid exit strategy. And they proved it by entering the market at random and using only an atr stop. The markets they used for this proof where the futures markets like gold, oil, wheat, and so on with exception of the s&p. The starting balance must be 1 million dollars. A lower balance did not work... No piramiding or re - entry...

Sounds like someone from the old school. Did you visit the trader club site back then?

 

[intradaybill]

Quote from Shagi:

Its talk of people who don't know what they are talking about.

+1

I will add to this that have also never seriously traded.

 

[1a2b3cppp]

Quote from MGJ:

• Instead of futures markets, what about using different currencies. Are those uncorrelated enough?
  
  And you could use a small lot size so that each position was a small percentage of your account, that way you could have a really big trailing stop without running out of margin.

What prevents YOU from trying it out using currencies?

What prevents YOU from trying it out using a small lot size so that each position is a small percentage of your account? That way YOU could have a really big trailing stop without running out of margin.

That was a useful post. I don't have access to any backtesting software atm AND I was more throwing it out there to trigger some discussion and ideas.

 

[danielc1]

Quote from EliteThink:

Sounds like someone from the old school. Did you visit the trader club site back then?

Yes... I also went to some workshops from chuck and van. Priceless information in the old days... Some things are still working

 

[EliteThink]

Quote from danielc1:

Yes... I also went to some workshops from chuck and van. Priceless information in the old days... Some things are still working

Nice, lots of talent there for a while. I don't see mark brown and mark johnson and some of the those guys anywhere any more. Some are still on the Omega List. Most people don't realize places like ET and other forums are decendants of TraderClub.

Keep the faith.

 

[MGJ]

Quote from MGJ:

There was a discussion thread about this on the blox forum, a few years ago (thread name = "Test results 4 different entries + random exits")

Here are a couple more images from that thread; it appears that the Bollinger %B entry was quite a bit better than random entry.

 

[1a2b3cppp]

Quote from MGJ:

Here are a couple more images from that thread; it appears that the Bollinger %B entry was quite a bit better than random entry.

Looks not very good

Looks better.

 

[oraclewizard77]

I think what people don't understand is that the market is sometimes range bound, sometimes trending, and sometimes random.

Now you may ask why would someone randomly buy or sell a stock. Some people may buy a stock because it has a cool name. They may flip a coin. They may be just be plain stupid.

For example, I was once long a stock that was being bought out for cash and the spread was $ 8. One of the reasons for the large spread was that ones of the funds that does arbitrage blew itself up and could not close the spread.

I have seen stocks where they declare bankruptcy and tell everyone that the stock will be worthless, but it still trades for over $ .25/sh. Now in time, the stock was worthless.

Also, another aspect where stupid people vote against there own benefits is whenever you see a poor person vote for a Republican who is saying they will make cuts on poor people.

 

[goodgoing]

Quote from danielc1:

Random entry system and a atr stop. It was teached by chuck lebeau, van tharp and some others...

It is used to prove that entry is not so important then having a solid exit strategy. And they proved it by entering the market at random and using only an atr stop. The markets they used for this proof where the futures markets like gold, oil, wheat, and so on with exception of the s&p. The starting balance must be 1 million dollars. A lower balance did not work... No piramiding or re - entry...

No wonder why in my school probability & statistics was the hardest course. When math professors wanted to get laid they made it a requirement for marketing. Some old names have never understood probability & statistics. It if funny that a lot of people actually paid and still pay people who do not understand math.

This world is full of fools...

 

[danielc1]

Quote from goodgoing:

No wonder why in my school probability & statistics was the hardest course. When math professors wanted to get laid they made it a requirement for marketing. Some old names have never understood probability & statistics. It if funny that a lot of people actually paid and still pay people who do not understand math.

This world is full of fools...

My English is not so good, but are you calling me a fool with you reply?