bruce -- why do you want to be notified of the mechanical
signals, even if a little late? I am wondering if you may be
misunderstanding the value of the signals of the mechanical
systems. They are of value within the context of the
mechanical system, taking every trade day in and day out, because
over time they average out to positive, profitable results.
But they often are not of much value for discretionary
trading. As often as not they signal an entry or exit at a
point that on your own as a trader, you would not take a trade.
Yes I agree, the mechanical MA systems by their nature, when the
MA's cross they are overbought or oversold. They work if you
take every trade and let the stats work out, but not all the trades
are winning trades and sometimes with SRS or SKF you can have a 10%
losing day, but overall the stats work out if you do every
trade. They are not good for discretionary trading as Michael
has said.
Plus, these systems are something that you really need to set up
on your own charts. Very easy to set up with real time
streaming charts, it's better to have hem on your system than us
trying to send emails out that take time and might get to you
late. These systems are the most basic of mechanical systems
and are not complicated.
Posted by rgoodwin on 17th of Mar 2009 at 08:29 pm
Also with regard to the mechanicals, if you are going to trade
these signals, it still makes sense to set your own tolerance
levels for losses and or profit taking. I agree with michael that
they are established such that over time they average a nice profit
and can generally remove emotion from trading however, is there any
system on the planet that is fool proof that may not stop working
at some point in time and one that you should not consider your own
tolerance as a trader. I personally use a large number of
mechanicals to do my trading with, but each one has been optimized
to profit targets and stop loss levels. If one shows a stop loss
that is greater than what I am willing to accept - I simply will
not trade that instrument. Define yourself as a trader, know your
tolerances and don't expect/anticipate anyone anywhere to tell you
precisely when to enter or exit a trade.
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value of mechanical signals?
SRS/SKF
Posted by Michael on 17th of Mar 2009 at 08:08 pm
bruce -- why do you want to be notified of the mechanical signals, even if a little late? I am wondering if you may be misunderstanding the value of the signals of the mechanical systems. They are of value within the context of the mechanical system, taking every trade day in and day out, because over time they average out to positive, profitable results. But they often are not of much value for discretionary trading. As often as not they signal an entry or exit at a point that on your own as a trader, you would not take a trade.
Yes I agree, the mechanical
Posted by matt on 17th of Mar 2009 at 09:51 pm
Yes I agree, the mechanical MA systems by their nature, when the MA's cross they are overbought or oversold. They work if you take every trade and let the stats work out, but not all the trades are winning trades and sometimes with SRS or SKF you can have a 10% losing day, but overall the stats work out if you do every trade. They are not good for discretionary trading as Michael has said.
Plus, these systems are something that you really need to set up on your own charts. Very easy to set up with real time streaming charts, it's better to have hem on your system than us trying to send emails out that take time and might get to you late. These systems are the most basic of mechanical systems and are not complicated.
Bruce
Posted by rgoodwin on 17th of Mar 2009 at 08:29 pm
Also with regard to the mechanicals, if you are going to trade these signals, it still makes sense to set your own tolerance levels for losses and or profit taking. I agree with michael that they are established such that over time they average a nice profit and can generally remove emotion from trading however, is there any system on the planet that is fool proof that may not stop working at some point in time and one that you should not consider your own tolerance as a trader. I personally use a large number of mechanicals to do my trading with, but each one has been optimized to profit targets and stop loss levels. If one shows a stop loss that is greater than what I am willing to accept - I simply will not trade that instrument. Define yourself as a trader, know your tolerances and don't expect/anticipate anyone anywhere to tell you precisely when to enter or exit a trade.