Dump it Here

[Skate]

@Wyatt you wanted a bit of meat ?

You said: "Throw us a bit of meat"

I’m not sure what you are after with that comment so I’ll vaguely answer in a theme that may help others save some money

This is the best piece of advice I can give you

Repeating
Please don’t gloss over this piece of advice but take time to unpack it – this is so important it’s a life skill well adaptable to trading & it will be in your best interest to remember it:

"Don’t react, respond. Responding gives you time to think"

Scammers
* Don’t fall for scam artists.
* Scammers will suck you in to pay thousands of Dollars for courses about some new secret information that have been publicly available for years.
*There isn't anything new under the sun and there isn't any special secret out there that I’m aware of
*Almost everything is publicly known and information is constantly being sold as new information its just becomes repetitive.
*As a general comment - there isn't anything new under the sun out there.

Read my post on being a wimp - you will learn a lot from that post alone.

Skate.

@Wyatt you wanted a bit of meat ?

You said: "Throw us a bit of meat, as in some backtests"

I’m not sure what you are after with that comment so I’ll vaguely answer in a 2 part theme that may help others save some money

Theme 1
Advice that may help

This is the best piece of advice I can give you

Repeating
Please don’t gloss over this piece of advice but take time to unpack it – this is so important it’s a life skill well adaptable to trading & it will be in your best interest to remember it:

"Don’t react, respond. Responding gives you time to think"

Scammers
* Don’t fall for scam artists.
* Scammers will suck you in to pay thousands of Dollars for courses about some new secret information that have been publicly available for years.
*There isn't anything new under the sun and there isn't any special secret out there that I’m aware of
*Almost everything is publicly known and information is constantly being sold as new information its just becomes repetitive.
*As a general comment - there isn't anything new under the sun out there.

Read my post on being a wimp - you will learn a lot from that post alone.

Skate.

@Wyatt this is theme 2

Backtesting
You need to do your own backtesting and most off-the-shelf trading software has this backtesting feature these days. I learnt to code using Metastock (its a charting program that @tech/a used to develop his trading strategy)

Metastock had its limitations as far as backtesting goes so I made the switch to Amibroker. I had to learn a new language as Amibroker Formula Language (AFL) is a mixture of C & C++

Learning to write in a new code was a challenge but with help & guidance from ASF members the transition was made easier.

Everyone must trade a style that fits their personality as you will not follow a system that does not suit you.

Regardless, you cannot develop the confidence to pull the trigger after multiple losses in a row without having done the required backtesting yourself - this I can guarantee you.

Skate.

 

[Skate]

@Wyatt this is theme 2

Backtesting
You need to do your own backtesting and most off-the-shelf trading software has this backtesting feature these days. I learnt to code using Metastock (its a charting program that @tech/a used to develop his trading strategy)

Metastock had its limitations as far as backtesting goes so I made the switch to Amibroker. I had to learn a new language as Amibroker Formula Language (AFL) is a mixture of C & C++

Learning to write in a new code was a challenge but with help & guidance from ASF members the transition was made easier.

Everyone must trade a style that fits their personality as you will not follow a system that does not suit you.

Regardless, you cannot develop the confidence to pull the trigger after multiple losses in a row without having done the required backtesting yourself - this I can guarantee you.

Skate.

@Wyatt you went on to ask - Trade lists or something else to assist this thread (I'll break your question up and answer them as theme groupings)

Group 1

What market do we trade?
Trading is not limited to the Australian Securities Exchange (ASX) as the world is your oyster, trading is not limited to the country of your residence.

Trading in different countries adds complexities due to their taxation and capital gains laws and how they are appropriated.

Most western countries have reciprocal Investment and tax treaties between participating governments assuring investors don’t circumvent their financial obligations in regard to meeting those taxation requirements.

More to come.

Skate

 

[Skate]

@Wyatt you went on to ask - Trade lists or something else to assist this thread (I'll break your question up and answer them as theme groupings)

What market do we trade?
Trading is not limited to the Australian Securities Exchange (ASX) as the world is your oyster, trading is not limited to the country of your residence.

Trading in different countries adds complexities due to their taxation and capital gains laws and how they are appropriated.

Most western countries have reciprocal Investment and tax treaties between participating governments assuring investors don’t circumvent their financial obligations in regard to meeting those taxation requirements.

More to come.

Skate

@Wyatt The second part to explain: Trade lists or something else to assist this thread

Group 2

Within the market how do we choose which Index to trade?

If you decide to invest locally in the ASX you need to evaluate the level of risk that you are willing to absorb to determine which index or combination of indexes that are suitable for you to trade

The All Ordinaries (ASX: XAO) comprises of the top 500 companies by market cap and it has a mix of safe, stable and aggressive companies that enjoys more volatility than all the indexes listed above.

XAO
The All Ordinaries for me has the right risk/reward combination for a growth portfolio & is well suited to any Trend Trading Strategy – it’s a bit of a roller coaster but the rewards are larger with the corresponding disadvantage of higher risk.

Nail biting
Indexes above the All Ordinaries have nail biting volatility and it’s akin to hanging on to a cliffs edge just by your fingertips, meaning trading an Index above the All Ordinaries you’ll require nerves of steel or at the very least you need to be a very hardened punter.

Skate.

 

[Skate]

@Wyatt The second part to explain: Trade lists or something else to assist this thread

Group 2

Within the market how do we choose which Index to trade?

If you decide to invest locally in the ASX you need to evaluate the level of risk that you are willing to absorb to determine which index or combination of indexes that are suitable for you to trade

The All Ordinaries (ASX: XAO) comprises of the top 500 companies by market cap and it has a mix of safe, stable and aggressive companies that enjoys more volatility than all the indexes listed above.

XAO
The All Ordinaries for me has the right risk/reward combination for a growth portfolio & is well suited to any Trend Trading Strategy – it’s a bit of a roller coaster but the rewards are larger with the corresponding disadvantage of higher risk.

Nail biting
Indexes above the All Ordinaries have nail biting volatility and it’s akin to hanging on to a cliffs edge just by your fingertips, meaning trading an Index above the All Ordinaries you’ll require nerves of steel or at the very least you need to be a very hardened punter.

Skate.

@Wyatt you went on to say: tell us more about your ability to follow your system without question this point seems to be critical

Confidence is the key
Backtesting gives you the confidence not the ability to follow your system.

Effort
I know it’s a big ask but if you would be kind enough to read all my post they will answer most of your question without you knowing & I’ve written them hopefully in a fashion for you to want to read another after another. When it comes to trading there are no short cuts & no free lunches.

The market is not logical or reasonable
The simple truth is that the market is not logical or reasonable. It is emotional and unstable. A market is nothing more than a crowd of people that has absolutely no regard for what any one person may think and most times rational people make irrational decisions.

Nothing new
I often hear that markets have changed and new rules are needed for the new game, well the markets do change but the underlying fundamental rules for success don’t seem to.

You need a trading system
It is my belief that to succeed in the financial markets you need to have some kind of trading system in place.

Skate.

 

[Skate]

@Wyatt you went on to say: tell us more about your ability to follow your system without question this point seems to be critical

Confidence is the key
Backtesting gives you the confidence not the ability to follow your system.

Effort
I know it’s a big ask but if you would be kind enough to read all my post they will answer most of your question without you knowing & I’ve written them hopefully in a fashion for you to want to read another after another. When it comes to trading there are no short cuts & no free lunches.

The market is not logical or reasonable
The simple truth is that the market is not logical or reasonable. It is emotional and unstable. A market is nothing more than a crowd of people that has absolutely no regard for what any one person may think and most times rational people make irrational decisions.

Nothing new
I often hear that markets have changed and new rules are needed for the new game, well the markets do change but the underlying fundamental rules for success don’t seem to.

You need a trading system
It is my belief that to succeed in the financial markets you need to have some kind of trading system in place.

Skate.

@Wyatt asked another question: Did you code it yourself or did you get your concepts coded up

Fist let me make a general comment if I may..

Dump it here
My intention for starting a ‘Dump it here” thread was to share my experiences in the hope it may help newcomers understand some of the challenges traders face and endeavour to smooth out the learning curve.

Educational information
I covered the most important articles I could think of & posted them in a lighthearted way. Others may gain an understanding of what is required & expected of them having been informed of the emotional roller coaster they will experience with the associated the financials risk going forward - the views are from my experiences & perspective.

Skate.

 

[SirRumpole]

This is also a very educational thread.

Well done Skate.

 

[Skate]

@Wyatt asked another question: Did you code it yourself or did you get your concepts coded up

Fist let me make a general comment if I may..

Dump it here
My intention for starting a ‘Dump it here” thread was to share my experiences in the hope it may help newcomers understand some of the challenges traders face and endeavour to smooth out the learning curve.

Educational information
I covered the most important articles I could think of & posted them in a lighthearted way. Others may gain an understanding of what is required & expected of them having been informed of the emotional roller coaster they will experience with the associated the financials risk going forward - the views are from my experiences & perspective.

Skate.

A further response to @Wyatt question: Did you code it yourself or did you get your concepts coded up

Did you code it yourself ? - YES
Rome wasn't built in a day - coding is always a work in progress (ask a artist [painter] when his work is finished - it never is & they are never happy with their results) With the assistance of a great coder pointing me in the right direction & answering my questions I have a half decent code.

{where} Did you get your concepts ?
I've never had an original idea of my own when it comes to trading - I've stood on the shoulders of others who came before me. Why invent the wheel, there is nothing new out there.

Technology
For all the advancements in technology the market itself hasn’t changed much. It is still driven by the same two opposing forces, fear and greed.

Booms and busts
There will always be share market booms and busts, but the share market has consistently out preformed most other investment classes.

Speculating
These moves affect the various market participants in different ways, but one thing is true, the worst affected are those who are randomly speculating without a sound trading system or the right tools.

Simple methods are the best
By following some simple tried and tested methods, we can learn to protect our capital and improve our overall investment returns.

Skate.

 

[Skate]

This is also a very educational thread.

Well done Skate.

well thank you kind Sir..

Skate.

 

[Skate]

A further response to @Wyatt question: Did you code it yourself or did you get your concepts coded up

Did you code it yourself ? - YES
Rome wasn't built in a day - coding is always a work in progress (ask a artist [painter] when his work is finished - it never is & they are never happy with their results) With the assistance of a great coder pointing me in the right direction & answering my questions I have a half decent code.

{where} Did you get your concepts ?
I've never had an original idea of my own when it comes to trading - I've stood on the shoulders of others who came before me. Why invent the wheel, there is nothing new out there.

Technology
For all the advancements in technology the market itself hasn’t changed much. It is still driven by the same two opposing forces, fear and greed.

Booms and busts
There will always be share market booms and busts, but the share market has consistently out preformed most other investment classes.

Speculating
These moves affect the various market participants in different ways, but one thing is true, the worst affected are those who are randomly speculating without a sound trading system or the right tools.

Simple methods are the best
By following some simple tried and tested methods, we can learn to protect our capital and improve our overall investment returns.

Skate.

@Wyatt are you asking a deeper question when you ask about my concepts.

I'm reading between the lines here - I'm guessing you want to know the nuts & bolts of my strategy is that correct?

If so, you only need to ask - if not, that's Okay..

I hope I've answered your questions to your satisfaction

Skate.

 

[Wyatt]

Thanks Skate for your detailed response.

This thread is an excellent point of reference for new traders.

 

[Smurf1976]

Never judge books by their covers. It's an old saying but a very true one.

Don't assume whoever's driving the truck or working on the factory floor doesn't understand the business.

That concept applies to everything. Not having a degree or not owning an expensive car means nothing more than that. It doesn't mean the person is incapable of obtaining a degree or an expensive car, it only tells you that they have not done so and there's a huge difference there.

Put aside the stereotypes and preconceived ideas and you'll learn many things from seemingly unlikely people.

 

[luutzu]

Never judge books by their covers. It's an old saying but a very true one.

Don't assume whoever's driving the truck or working on the factory floor doesn't understand the business.

That concept applies to everything. Not having a degree or not owning an expensive car means nothing more than that. It doesn't mean the person is incapable of obtaining a degree or an expensive car, it only tells you that they have not done so and there's a huge difference there.

Put aside the stereotypes and preconceived ideas and you'll learn many things from seemingly unlikely people.

The story of Theranos illustrate this very well.

If you haven't, it's quite a read. Bad Blood by John Carreyrou goes behind the scenes. He uncovered the fraud and scam Theranos founder pulled for some 13 years. Costing "sophisticated investors" about $1B... and a heck of a lot of people their health, possibly life.

Basically, Theranos founder was a 19 year old female Standford dropout who claimed she discovered a new tech of diagnosing pretty much all the blood tests known to man with a few drops of blood pricked from your fingertip - as opposed to the current vials and vials of it.

Got a few millions to kick off; then got herself former US Sec.of State on board; got a famous Silicone Valley VC investor - guy who brought Oracle to the world... then got Henry Kissinger, former Sec of Defense etc. etc.

With these big names, new investors assume they must know what they're doing; with military/pentagon ties they assume lies about the tests being used in the military to be true. On and on until Rupert Murdoch, the Waltons heirs, Carlos Slim etc., all invested because, again... they assume big names mean it must be true and good.

Ended up losing close to $1B.

 

[Skate]

Never judge books by their covers. It's an old saying but a very true one.

Don't assume whoever's driving the truck or working on the factory floor doesn't understand the business.

That concept applies to everything. Not having a degree or not owning an expensive car means nothing more than that. It doesn't mean the person is incapable of obtaining a degree or an expensive car, it only tells you that they have not done so and there's a huge difference there.

Put aside the stereotypes and preconceived ideas and you'll learn many things from seemingly unlikely people.

In one of my courses
@Smurf1976 in one of my courses I have a whole section devoted to: "Why you should never qualify people"

Decisions
Qualifying people leads to poor decision making.

Disclaimer
I don't practice what I preach/teach - I qualify everyone (just to see if I was right or wrong)

Skate.

 

[Skate]

Money money money, its the root of all evil, apparently.

Money and power hang out together, but power has so many variations, from controlling other people to what I favour and that is the power to choose what to do with my time. Particularly as in getting up early and working too many hours for someone else as you get older and less interested.

The power of choice is what motivates many.

Learning leads to Knowledge or Action
@Wyatt as the saying goes, if what you learn leads to knowledge, you become a fool - but if what you learn leads to action, you can become wealthy.

A successful person
The difference between a successful person and others is not a lack of strength, not a lack of knowledge, but rather a lack of will.

Knowledge
Knowledge is not power, execution is.

Skate.

 

[Wysiwyg]

Put aside the stereotypes and preconceived ideas and you'll learn many things from seemingly unlikely people.

There be a wise quote.

 

[Skate]

@willy1111 forget the words @Ann used but concentrate on context.

@willy1111 you said "Her response didn't indicate that to me" well that's nice (reference to Mrs Browns Boys)

I trust you are taking an interest in my posts & enjoying the thread.

I don't want to have to repeat myself - I've posted the formula for perception its a few posts back. (you need to read it)

Whether your right or wrong isn't important - whats more important is that this thread gives you the ability to express your views without being ridiculed or challenged.

Thank you @willy1111 for expressing yours.

Skate.

Civility when expressing an opinion
I've replied to @willy1111 explaining when members express an opinion it's not whether they are right or wrong or whether you’re right or wrong that's not what is important.

What is important - is the words you use to express an alternative point of view or express an opinion from your experience.

This thread gives you the ability to express your views without being ridiculed or challenged.

Appreciation
I appreciate every view expressed on ASF, I don't agree with some but others I take on board & feel wealthier for it.

Acceptance
We can all agree to disagree - we can all contest our ideas but to express those views in a manner that's unacceptable is not on.

Belief
Your belief system defines whether you agree or disagree with a members post but if you don’t listen you forgo the right to understand their point of view..

A few members with conviction
I've listed a few forum members I enjoy reading who prosecute their case forcefully with conviction and when they have something to say it pays to listen. Some posts I re-read to pickup the gems they causally scatter.

@Ann
@barney
@bigdog
@captain black
@Commons
@cynic
@Darc Knight
@explod
@Garpal Gumnut
@greggles
@Gringotts Bank
@jbocker
@Joe Blow
@kid hustlr
@luutzu
@mcgrath111
@myrtie100
@qldfrog
@Sdajii
@Smurf1976
@sptrawler
@tech/a
@Tink
@Trav.
@Value Collector
@Wyatt
@Wysiwyg

 

[Skate]

TAG

@Wysiwyg - Reality is when an indeterminable number of minds agree on something.

I should have named 'TAG' - GEMS (the description would be more apt)

Skate.

 

[barney]

I've listed a few forum members I enjoy reading who prosecute their case forcefully with conviction and when they have something to say it pays to listen.

The Devil in the detail is often the most helpful indeed

 

[barney]

Reality is when an indeterminable number of minds agree on something.

And often times the exact opposite

 

[Wysiwyg]

And often times the exact opposite

Or, one man's reality is another man's disbelief.