ASX great questions!!
Some questions for the contributors:
1. Who actually trades using Elliott Wave?
2. If you trade using EW, what proportion of your analysis involves EW? ie. is it core to your technical analysis, or is it a bolt-on extra, applied after some other trend identification method brings something to your attention?
As a stand alone platform I have only done a few trades---intend to do a LOT more and as we go along this will be come clearer/why. I have however for over 12 mths used Elliott as the Primary tool to tell me
WHERE I AM in taking and in lots of cases closing a trade.This is a powerful tool in my view. Taking a bullish trade when your clearly in a corrective move is low positive outcome expectancy.
Advanced Get has basically 6 trading
STAND ALONE recommended platforms.
(1) Getting on and trading Wave 3s both long and short.
(2) Joining a wave 3 trade long or short.
(3) Trading The end of Wave 5 long or short.
These make perfect sence to me for the best stand alone Elliott trading platforms. How you do this is shown by the Elliott people or you can design your own.
3. What time-frame do you trade in?
My timeframe will be shorter around 1-4 weeks. but any timeframe can be traded using Elliott.
4. What proportion of winners to losers do you have?
Of the 4 trades I have completed 3 from 4. From experimental trades 50% roughly but I will say that approx 25% of those that failed I didnt strictly adhere to the "Canned" rules from GET. I am in contact with people who use E/W exclusively and they report (un substantiated) 70-80% hit rate. R/R of approx 2
5. What is your average winning trade and average losing trade size?
Porper nailed the answer to this.I'm looking to trade about 60% profit on capital each year as a minimum. if I cant do this I'm better off just trading my longer term methodology.My personal view is to use larger position sizes (relative to risk factors) with a higher than average (50/50) win loss rate.
6. What is your risk per trade?
Determined by Capital and entry points.
One thing I have learned is you can and should wait for the trade to come to you---don't pre empt it both entry and exits.
7. What is the opportunity factor of your system? ie. how often does your analysis provide you with a trade?
There are countless setups. However this is an important factor (universe you wish to trade).This is taking up a lot of time now and will in the near future.Rather than looking at the whole market its my intention to look only at the strongest,in otherwords I am setting up folders with stocks that I will select by OTHER methods to include in my trading universes and run the analysis on those.
Since a method of analysis is not a trading system per se, and in the case of EW is often only relevant for the ´setup´ of a trading opportunity, I think it´s important for people contemplating EW to get the ´reality check´of an applied system.
This is not so it is can be and should be in many cases used as a complete trading methodology. I dont intend to explain those methodologies presented by GET but happy to run a few as a demo. You'd need the software to understand and apply fully. I have invested the $$s and the time others may not think this is for them. Sure you can design and develope a trading method or methods traded PURELY with Elliott.
Radge does and if you join his Chartist you can learn his methodology. He runs a number of portfolios with daily updates,he doesnt use Get and or their Canned methods (that I'm aware of).
Trade it.
15 yrs you'd be a slow learner---but agree with waves---some will never get it.