Obviously 666 didn't come up with a good example. He may be a person who is a conversationalist about what he has read or gleened from others but reasoning and understanding is not his bag as yet.
Making over a tenth of 1 percent a day on average was never anything to cheer about. However, it may be possible that dealing in multiples of the ATR is what a potential trader observes as he builds his display. All viewers see it. Apparently not many viewers do more than 666 did when he reviewed Eckhardt to provide the humor for us.
There were four possibilities for Eckhardt to consider in the studues and he left out two of them. Too bad, it negated the study from the beginning. Today researchers automatically go to one of the left out cases as THE comprehensive case to examine,
Conjecture about a technical aspect of a market is simply conjecture before or after testing the conjecture.
Design of models and their development doesn't deal with conjecture since it is a diversion. In science and in logic, work is done with hypothesis BEFORE they are used in trading with money.
This is where trading FOUNDATIONS for the many profitable methods come from. Most people who do modelling and model development KNOW where they are in several spectrums that qualify models and qualify development of models.
A good and kindred example is APL work. Now there are two main forks.
What are the prudent alternatives to conjecture? The list grows longer as long as one thinks about it.
It becomes fairly clear that those who work the "edge" turf, do not succeed usually. Most edges turn out, as expected, to be marginal. It is a tough mental decision to throw out the market's behavior and instead "look" for an edge.
Poker is a simple game. No one looks for deges in poker. A potential player just learns the game at young some age probably around the time he learns reading and arithmatic and doing division and fractions and ratios. Minds are easily differentiated before teenage. after teenage the mind turns to "use it or lose it".
By understanding that anyone can be successful in trading simply because there is no competition and the market is always offering, is a very good place to start.
I started there and understood the right side of the market, taking profits for whole trend moves and keeping my capital pulling money out of the market all the time.
Scoring was a byproduct that 666 could not grasp, use or back test as we all found out. It was very funny when it appeared and has become a priceless posting each cycle of its reappearance.
Scoring divides the cycle of price, volume and Accumulation/ Distribution into 8 segments or portions. They follow an order that resembles counting since they are named by their binary value. Three binary things have 8 combinations. To make money you use the vector aspct of scores. One score leads to another.
This phenomena is also used with indicators. The segemnts follow an order as well and their are many combinations of segments since their are more than 8 different segments. I use 31 basic identifyable elements and in combination they provide 10 configurations that provide the same three baisc answers as scoring does.
Where in the cycle are you?,
What is next?
and How fast are things changing?
666 was able, for the S&P 500, to test 1000 stocks and find the shift from the score 0 to the score 7 23,000 times. But he could not find the corresponding shift from 4 to 3 23,000 times. He concluded that it didn't happen. Actually, for him and for the stocks he tested it did not happen. For those who wish to know why, the answer is that he did not use the correct time period bcause he did not consider the third question which was part of my invention that he was proving doesn't work. In science and logic, we all know this is a challenge that is not considred for scientific and logical reasons. 666 did not consider the logic nor the science of scoring it turns out. He may have the same orientation to indicators.
For me, I use these valuable things trading and in ATS's and fortunately they work as hypothesized, simply based on the fact that they exist and happen in markets.
I am compared to Eckhardt for reasons or various sorts. In fact, I am an amateur and have been for over 50 years. Darvas and I were contemporaries. We both made the news then. I negatively and he positively. I was faulted for trading a stock that triggered a rumor mill that led to brokers being fined. We both, however, made a lot of money in those times and ever since.
It seemed that no one wanted to make money then and when a person did it was an unusual occurence.
As slurpie has determined for himself, he is not going to consider what has worked for others for over 50 years. DR Z cannot even read anything he apparently has heard about. In fact, there are many people who have convinced themselves that lindicators are lagging something. For me, as is scoring, they are leading the price that I trade.
Anyone can learn to trade and make a goodly portion of the market's offer. The potential trader is subject to certain rules of behavior and thinking. If a potential trader does not think straight or according to logic or science, he fails. If a trader acts upon thinking that is imperfect, then he will be a loser most likely.
One of the great things about trading is that the mind can be built to make tons of money compared to most any other endeavor. And there is no price of admission it would seem. I never paid one, anyway. I made money from the very beginning.
People with money and those who are very successful traders, see in others a lot of things that aren't the best. Slurpie is typical of a person who draws conclusions that are right to him and, in fact, it is terrific that he has gone away from doing what I and others so successfully. He is not going to bug us about anything he needs. the same with 666 he isn't learning or finding anything out. He is in lala land doing paperdolls and didn't understand Eckhardt didn't make any money over 18 years.
People who do consider trading rationally see what the ATR means and they see what compounding means in terms of how long it takes to double using regular market constraints. Trading is the modern miracle of modern times. All that is needed is a mind, information, a computer and little money. I began with 300 dollars and some yellow pads to write down information. I made a velluum chart 11 by 17 for 6 months charting. I printed blank brownlines and pencilled the H, L and C of stocks. I saved the back page of the WSJ on wing nut clamped racks for quick back plotting. I added half my salary every other week.
Charts gave me rules and rules gave me market behavior. Scoring showed the three variable relationship of price, volume and Accumulation/Distribution. This suggested the P, V relationship that was in a book.
So I vacationed in Europe and bought Mercedes and quit working and raced sailboats out of Greenwich and moved to Switzerland to ski and climb and travel. Then I moved to Bucks County and raised two kids on a 1759 small farmette. Now I am in AZ, doing what we want and focussed on our NFP four missions. We spent 5 years here (ET) documenting trading @ 1 to 2 million hits a year. ET turns out to be the funniest place on earth almost.
I admit I didn't learn how to work for a living; why would I? I recommend the trader's life since it is so simple and money is always available for the taking.
I simply cannot imagine a person averaging 0.13% a day for 18 years given the daily ATR's out there. Steenbarger traning Greenspoon is equally funny to me. Greenspoon runs 400 contracts and trades 60 turns to average less than a tick per contract per turn under Steenbarger's continuing mental care. This may be the definition of incoherence.