starting from daily is the best idea to me...
I have been doing a bit of demoing and live trading over the last week on this particular simple system, (Theres that word again) especially over the pairs, e/u, a/u and g/u, mainly because of low spreads and these seem to be the most popular pairs.
My simple no nonsence, take it how it is, don't answer me back else you will get a slap verdict was, that this system should be purely for a daily chart and above,
I dropped down a few times to the 4 hr charts and even entered a few trades, getting almost decimated, yes decimated I say...Ignored
DislikedHere's an idea....do a quick visual backtest. Notice how the big moves are captured with this method - even moreso if you increase the 8 day MA to an even larger time parameter (I.E. 25 days).Ignored
DislikedAnyways, coil patterns are interesting but I'm not too sure what these coil patterns would look like. I'm thinking the idea of a coiling pattern would represent some sort of indecision in price where it has to break out. Could it possibly be some triangle/pennant formations? Or maybe inside bars and outside bars? I'll have to think about it for a while.Ignored
DislikedI met Ed Seykota and spent some one-on-one time talking to him about trading. He is considered one of the greatest traders ever.
He told me a number of things that I'll never forget.
1. He said that day trading was akin to having a slot machine on your desk and you just end up feeding it all day long.
Plus he said that he had NEVER met a successful long term day trader.
2. He said that he did use moving averages BUT he would not tell me what they were. He told me to find the ones that worked best for me.
But more importantly what...Ignored
DislikedI just happened to come across this thread, which is quite old but which interests me. Perhaps the fact that this thread seems to have died is indicative of the lack of consistent success in the following years since 2007.
The sample chart featured shows a 5/8 crossover right after a top was made, as if the trader had a "sure-fire" way to determine when and where that top occurs. I can become an instant millionaire, in theory, if I go back over historical charts and pick all the crossovers that happen after a top or bottom have formed. But,...Ignored
DislikedThe reason I think this thread kinda died out is not from the fault of the method but due to the fact that most of the participants here at FF are looking more for instant gratification than actually becoming successful long term traders......
There are many successful systems but most will not and do not have what it takes to be traders, they jump from system to system in search of something that will never happen.... a system that never has a drawdown or multiple losses in a row.
The key to trading is Discipline, Consistency, and Risk Management.........Ignored