Toothemoon
Nice to see you
I will attempt an answer
Technical analysis is an interesting discipline
There are many many ways to apply it and most are represented here one way or the other
Chartology , Elliot Wave , Gann Cycles , Time Cycles , The 4 Horsemen Indicators to name a few
Each Technician has a different approach and different mix of tools depending on ones personality and preferences which is ever evolving .
The common bottom line is….We need a trend in the market we are trading to make consistant $s
All of the techniques have strengths and weaknesses …but all would agree it is very difficult to make profits in
markets that are chopping around …as we have right now….in spades
Having said that we have a poster here , from the Rambus Chartology Forum ….Spock….who has spent hundreds if
not thousands of hours developing a technique which he calls the Spock Matrix for Unemotional Extraday Trading
With this method and a good trend one can expect about 5% a month IF Markets are trending
Basically Spock runs the whole universe of ETFs through his screening process which is based on 10 indicators
over different time frames to come up with the best buys .
This has been ongoing for 3 months and one thing for sure…it does NOT lose money net net.
His profits are modest to this point…about 3% in total BUT that’s simply a function of NO Trend
Here is the rationale
What we are attempting to achieve here with the extra-day model.
Sir B’s post was indeed correct and on the money for the intra-day guys. But not for the extra-day guys. the Spock model does not trade intra-day. Why?
There were some intra-day moves on 24th in the pm sector, as there always is. the intra-day traders are the feeding grounds for the algos…unfortunately for the day traders, but fortunately for the banksters with their algo robo trading computers, hunting stops and making life hell for the day traders. The banks are not “banks” any more in the traditional sense. sanctioned by the Fed, they take our deposits, which they pay no interest on (free money) and they trade the markets. With deep pockets the banksters have the BEST computers on the planet with Phd guys writing the trading codes for intraday HFT algo trading. And they have virtually unlimited free money to play with. the whole game is a fraud on us all, but it is what it is. We are screwed trading intra-day. Its that simple. if any non-professional day trader believes they have an edge, they are just kidding themselves. the HFT algos are way ahead of you.
This is just one reason why the Spock model was developed. to get around these people who paint the charts intra-day to confuse and abuse and steal money from the day traders. 95% of non-professional day traders eventually lose all their trading capital. I read that somewhere.
Editors Note : You read it here Spock
http://forum.rambus1.com/?p=64941
Forget about day trading as a long term strategy. It does not work for the majority of non-professionals.
The Spock Model works ONLY off the closing daily numbers. Intra-day moves like we had on 24th do not generate any signal, as the timing is pre-close.
We have to stick with the model rules for this to work. Otherwise we may just as well go back to intra-day trading off 5 minute charts, and go back to being part of the Banksters feeding grounds. We all know what that is like. High stress, low reward….and no life!
The Spock trade signals are only posted daily after the close. So for a normal 5 day trading week, expect only 5 reports. unemotional. logical. extra-day.
Trade Long (and Short) with Spock .
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SPOCK TRADING RULES
On March 8, 2015 ·
THE RULES ARE AS FOLLOWS AND SHOULD BE FOLLOWED RELIGIOUSLY (THIS IS GOD’S WORK!):
1. ENTRY AND EXIT: ENTER OR EXIT TRADE ON NEXT TRADE DAY, AFTER SPOCK CONFIRMS UPDATED TRADE POSITIONS AFTER THE MARKET CLOSE.
2. STOP LOSS: USE TRAILING STOP LOSS FOR ALL TRADES. USE DAILY PSAR (0.02, 0.2) AND UPDATE DAILY BASED ON THE LAST DAILY CLOSE DOT. THE PSAR STOP LOSS IS DESIGNED TO PROTECT THE POSITION AGAINST INTRA-DAY REVERSALS, AND LIMIT LOSSES IN THE EVENT OF AN UNEXPECTED LARGE INTRA-DAY PRICE REVERSAL.
3. FLAT: STAY IN CASH UNTIL ENTRY OR EXIT SIGNAL CONFIRMED BY SPOCK.
4. “TIME WINDOW” MEANS BETWEEN 10:00AM TO 3:00PM NEW YORK LOCAL TIME. ENTER OR EXIT IN THIS TIME WINDOW.
5. ENTRY AND EXIT PRICE IS AT THE BEST BID/OFFER MARKET PRICE AT THE TIME OF ENTRY/EXIT WITHIN THE TIME WINDOW.
6. Exiting and entering half positions. Unless stated, all positions are full positions (100%). Where 50% exit or entry is stated it means exit or enter for half a position
7. POSITION SIZE: FOR CAPITAL ALLOCATED TO SPOCK TRADING, 5% to 10% SHOULD BE ALLOCATED TO EACH ETF TRADE POSITION. GENERALLY THERE WILL BE BETWEEN 5 TO 15 (average of 10) OPEN AND ACTIVE TRADE POSITIONS RUNNING CONCURRENTLY.
8. LEVERAGED ETF SELECTION: THIS IS LEFT UP TO THE INDIVIDUAL TRADER, BASED ON INDIVIDUAL RISK PROFILE.
9. NOTE: SPOCK TRADE SIGNALS ARE UPDATED DAILY AFTER THE CLOSE, FOR EXTRA-DAY TRADING PURPOSES, NOT FOR INTRA-DAY TRADING PURPOSES.
10. Rule number 10 has been added. Its probably the most important rule. basically what it is saying is that when using this extra-day trading model you must learn to remain detached from the markets. That means not looking at intra-day charts, not reading heaps of financial news and opinions. The only authors that I read are Armstrong for the macro global capital flows, Sir Rambus for his excellent chartology analysis and Trader Dan. The rest is rubbish quite frankly, and all it does is turn what should be an unemotional trade into an emotional opinionated trade. And that leads to losses in the long term
The development of the Spock Matrix Trading System :
The goal was to develop a Mechanical Trading System (Matrix) based on a universe of tweaked and standard indicators applied to a wide variety of global market sectors across long term, medium term and short term time frames. The Spock Matrix is designed to take out all opinion and emotion, the two deadly sins of trading. Also it is designed for those who do not wish to or cannot monitor their positions intra-day . It is an extra-day trading system and the signals should not be used for intra-day trading. The Spock trade signals are updated after the close each day for action the next day, in the “morning” time window. The recommended time window for entry/exit is between 10:00 AM and 10:30 AM New York local time. The rules should be followed explicitly. Its a robotic process with no emotional thought involved.
The Spock Matrix covers most major global market sectors and industries, currencies, bonds, equities and commodities. So it covers the whole spectrum. Trading vehicles are the non-leveraged and leveraged ETFs based on these market sectors and industries. All the trading vehicles are traded on the new York exchanges, where there is good liquidity and depth.
I have spent 1000s of man-hours on this system to date, so I am unwilling to post the exact details on the forum, as we have no idea who reads the forum. There could be fund managers there, who just take away the details, and use it to manage a large fund. So the details should remain confidential.
A number of significant changes to the criteria, with weightings on 14 different indicators, and go/no go switches, over four different time periods, have been recently added. The system has been back tested. The results will speak for themselves over the medium to long term. Back testing has proven that the system works incredibly well, if the rules are followed. That’s the most important aspect. Follow the rules and the signals generated, religiously.
I have done significant back testing now on different instruments, and it was spot on every time, in getting in early on the big trends. For example, if we had it this time last year, we would have got in on the short oil trade fairly early and ridden it all the way down. It would have extracted 75% to 80% of the price move down. Now that would have been a ride to remember!
Anyway, lets prove its worth in the future, not the past. The next few months will be a critical test, given the increasing volatility . I invite only disciplined members to do the trades virtually via the contest platform
or if you wish (and with the disclaimer applying) in your real accounts.
To follow this system simply check the “Spock Matrix” link at the top of the Chartology Forum. It will be updated
before the open every day. Best of luck out there.
Spock (formerly Classact)
Trade Long (and Short) and Prosper
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Well you asked Toothemoon and here it is
Spock posts his Graph here often….but not regularly…..I will see what I can do to encourage him to
be a regular here .
Fully
Well said FGC, unfortunately its lost on the majority of those that trade their own portfolio’s as their EGO’s won’t allow such simplicity.
Regardless of Gold going to $666 or $6000 there will be many opinions along the way suggesting their opinion is correct, super, unless that opinion is creating the gold chart it means jack-shit!
If one needs the opinion of a self proclaimed EXPERT I have one that will keep your position on the correct side of the trend and no matter what you trade if XYZ has a decent % run higher or lower it will nail the bulk of that trend making you money or SAVING you from repeating the massive losses the goldbuggers have taken over the years based on opinions or fundamentals which have no place in todays markets, that was our Father’s market.
Use your fav trend lines, EWaves, FIBs, whatever, but always have this 1 indicator on your chart as your opinion guide………..STD….TSI…on your daily charts
http://stockcharts.com/h-sc/ui?s=$GOLD&p=D&yr=4&mn=0&dy=10&id=p36083509032&a=413510415&listNum=1
Continued success to all………CHEER$!
Thanks Fully and Matrix.
I will absorb what you both have written and have another look at Spock’s work.