A video dedicated to me, featuring the return of the 70’s soundtrack! He almost forgot the site’s name, but he doesn’t mess with the stress, and achieved sweet recall in the end.
Thanks, and keep challenging that conventional wisdom! :-)
Looking around their site(s) here, here, and here, you can find lots more WMV movies of their strategy in use. Until recently I thought the youtube set was everything, but that was definitely not the case. Both winners and losers from a number of variations are featured, which is nice. That tradestation forum has a metric tonne of example charts, as well. I think there’s a lot there worth glancing at, if you haven’t yet. That’s why I keep putting up their videos.
What appeals to me is that they’ve managed to offload so much of the analysis work onto the computer, and yet still retain some discretionary flavor in the trades themselves. They seem to use indicators in exactly the way I preach here at MtM. Which is: indicators should give you high-level information that can feed trading decisions directly. It’s information like “we’re reaching the end of the current trend.” Compare that to, say, a newbie trying to make sense out of an MA, an RSI, a PPO, and a stochastic line buzzing back and forth across the magic 70 area. It’s so much better to derive indicators that tell you a more summary-level story, and use price action alone for the details. That’s why I like the QT paintbars I’ve developed so much.
Another thing I thought was interesting is that on a lot of their trades, they don’t form a pre-conceived idea of a profit target. Instead they appear to apply fib lines against intraday cycle highs and lows, in conjunction with their trend indicators, to pick an exit in real-time. I know a lot of traders pick profit targets based on fib lines against daily gaps, but I haven’t seen a lot of intraday fib line usage (possibly because it’s such a pain to draw and re-draw them with most charting packages that a lot of folks don’t bother to try it?). I’m one of those people in the camp that says fib lines seem like voodoo, so I’m not sure this idea is for me. But you fib believers might be interested.
So, to be clear, I’m not a subscriber to their service, and all I’ve seen on it is what’s out there on the web. But, they do seem to have some good ideas. It makes me want to get back to work offloading more of my decision-making onto my trading platform.
Hmm… for a post billed as ‘non-reading,’ there sure is a lot of text…. oh well, too late now…
