Target: Trading naked. 
- #586
- Edited Dec 7, 2006 3:48am Dec 6, 2006 5:39pm | Edited Dec 7, 2006 3:48am
Target: Trading naked.
- #588
- Dec 6, 2006 7:23pm Dec 6, 2006 7:23pm
- Joined Apr 2006 | Status: Trader | 1,459 Posts
Did you guys ever get anywhere with the below? This is an excellent system to implement. I just found this post tonight. If any of the trading systems I've read about that he's outline would work the best, this is certainly the one. It is especially best suited for the forex market better than any of his other systems, due to the fact that in the FX market, gaps are a huge rarity. The other systems either play off of them or have a slew of variables installed in the result that they occur. The system is most relateable to TD Trap, which I still use very frequently using daily bars. Its very simple (these are the best setups!) and very reliable. I take very few losses in general (and when I do they're close to zero, yes, I'm one of those guys) operating off of systems like TD Trap. I'll admit that I'm constantly monitoring market behavior all throughout my trades and make decisions as I go along, but if you're going to automate anything by TD, this is the one.
In his 2nd book, this system is outlined but unfortunately very vaguely. I've sent wegho a private message see if he has the original .pdf article published in Active Trader Mag. I'm curious to see how they have automated/implemented this.
I was thinking about a TD EA in general for you guys as I see all of these posts, and to do so wouldn't be that hard, but it would be very time consuming. The BASIS or core of DeMark is to objectively define these setups, completely shutting out any possiblity of human emotion or intervention, which is the death of most bad traders. With all of Demark's setups A+B+C=GO!! There's absolutely no subjective thinking involved. Perhaps you could introduce a large number of possible setups in one EA, creating somewhat of a hierarchy based on any number of different variables. Sticking to one particular setup all the time often fails because the condition of the market isn't right for whatever is being implemented.
That's sort of why I like TD Trap, because all you do is take a trade the second price busts out of the previous day's trading range + 1 tick. No matter what market you're in, that happens almost every day. Aha or anybody else out there, if you need more specifics on TD Trap please send me a PM.
Laters,
BRV
PS. - There are already TD systems created out there for a couple of different trading platforms. I have no idea how they perform nor even what they do, but people have definately created them. I just did a quick Google search and came across a few listed, maybe they can be used as a guide if anyone can find access to them.
In his 2nd book, this system is outlined but unfortunately very vaguely. I've sent wegho a private message see if he has the original .pdf article published in Active Trader Mag. I'm curious to see how they have automated/implemented this.
I was thinking about a TD EA in general for you guys as I see all of these posts, and to do so wouldn't be that hard, but it would be very time consuming. The BASIS or core of DeMark is to objectively define these setups, completely shutting out any possiblity of human emotion or intervention, which is the death of most bad traders. With all of Demark's setups A+B+C=GO!! There's absolutely no subjective thinking involved. Perhaps you could introduce a large number of possible setups in one EA, creating somewhat of a hierarchy based on any number of different variables. Sticking to one particular setup all the time often fails because the condition of the market isn't right for whatever is being implemented.
That's sort of why I like TD Trap, because all you do is take a trade the second price busts out of the previous day's trading range + 1 tick. No matter what market you're in, that happens almost every day. Aha or anybody else out there, if you need more specifics on TD Trap please send me a PM.
Laters,
BRV
PS. - There are already TD systems created out there for a couple of different trading platforms. I have no idea how they perform nor even what they do, but people have definately created them. I just did a quick Google search and came across a few listed, maybe they can be used as a guide if anyone can find access to them.
Hi aha,
I know you're very busy, but here is another comparatively simple TD system that had been mentioned in the Active Trader Magazine Sept. 2001 issue. It uses daily bars and can be applied to stocks or currencies. The rules are as follows:
1. Prepare to go long today if
a. the true high from four days ago is higher than the high from either two, three or five days ago (only one of the days needs to qualify for this), and
b. yesterday’s close is lower than the close two days ago, and
c. today’s open is lower than the high four days ago.
2. Go long today with a stop order at the true high of four days
ago, plus 0.1 percent.
3. Prepare to go short today if
a. the true low from four days ago is lower than the low from either two, three or five days ago, and
b. yesterday’s close is higher than the close two days ago, and
c. today’s open is higher than the low four days ago
4. Go short today with a stop order at the true low of four days
ago, minus 0.1 percent.
5. Exit all trades with a loss if the market moves against the position by 4 percent or more.
6. Exit all trades with a profit if the market moves in favor of the position by 12 percent or more.
7. Exit all trades after five days, counting the day for the entry as day one, and no matter how late in the day the trade was made (i.e., a trade
executed at 2:50 p.m. on Monday would be exited Friday the same week).
Apparently this system showed a nice profit in the stock market. It'd be nice to backtest this in forex and see what we come up with. Best regards
