Trading the SPI

[Poor_Grenville]

evening all ,hey ive got a question for poor granville ,with that ib paper account am i reading it right that to have a paper account one has to open and fund a real account first.Nathan

That is correct. You need to have an existing IB account... not sure you have to have it funded or not... and it takes around 3 days to set up the Paper Trading account.

But it sure is nice to test out your strategies without actually risking real money as realistically as possible.

 

[Realist]

I reckon we (at least me) would great value out of hindsight trades from you Wayne

There is never any value in studying hindsight trades..

History does not repeat itself exactly, nor is it any indication of what the future may hold. You can not repeat trades and expect the same results.

 

[Bronte]

Nobody is saying that the Gann Support / Resistance areas do not work.
My methods in trading them has and is in question.....rightly so.
I am working on that every day...that is what I do & shopping

 

[Poor_Grenville]

Then Bronte should just say I don't want to say why 4915 is support instead of BSing around.

I'll start calling some hindsight trades.

WTHPWNBBQ! (Don't ask me what that stand for)

Look, haven't you figured out that chics never says things
straight... and that they like to be as vague as possible...
and BS around a lot... so... heh eh

 

[nat]

ok then thanx for that poor granvile,i will look into it tomorrow ,as said would be handy to try out some things ,like if i actually stuck 100% to my plan would it work ok ,and be interesting only having a 1 point spread to contend with as i do aussie 200 on cfds and is 2 point spread.I looked at your journel ,looked interesting but didnt quite understand what was going on .Nathan

 

[Bronte]

GJUEDYOPVG
You have it Poor_G

 

[Bronte]

Nobody is saying that the Gann Support / Resistance areas do not work.
My methods in trading them has and is in question.....rightly so.
I am working on that every day...that is what I do & shopping

Thanks lads, I have learnt a lot from this evenings discussion

 

[Magdoran]

Hello Wayne,


The impression I have is that Battman is the Gann technician behind this group, and he is primarily using the square of 9, but they also hint that there is a time element involved – I’m still trying to figure this out… I have my suspicions.

Bronte it seems isn’t a Gann technician, but trades based on the formula – it’s essentially a “cake mix” approach, buy off the support, and exit when it looks like it’s going to turn back down… even if it’s against the days trend.

So in effect Bronte can’t tell you what you want to know…


Regards


Magdoran

 

[Poor_Grenville]

ok then thanx for that poor granvile,i will look into it tomorrow ,as said would be handy to try out some things ,like if i actually stuck 100% to my plan would it work ok ,and be interesting only having a 1 point spread to contend with as i do aussie 200 on cfds and is 2 point spread.I looked at your journel ,looked interesting but didnt quite understand what was going on .Nathan

You are welcome nat. My journal is meant for myself mainly.. and yes, I like to keep my journal as vague as possible because I belive you have to put in the work if you want to figure anything out lol. Sorry if it's not verbose enough :

 

[Freddo]

There is never any value in studying hindsight trades..

History does not repeat itself exactly, nor is it any indication of what the future may hold. You can not repeat trades and expect the same results.

History may not repeat itself exactly, but are you saying you do not believe
there are cycles in the market?

Are you saying that there is absolutely no value in trading in hindsight to search out for setups and patterns that may repeat?

Am I missing something? isn't something as simple a double top or bottom
a formation that repeats over and over again?

Maybe I am misunderstanding your definition of hindsight trades or
how you use them but they work for me. they have helped me build a trading plan, fine tune my real time trades both entries and exits and saved me from implementing very very bad trade entries

 

[wayneL]

Back from dinner...

Hindsite IS useful for commentary, analysis, learning etc.

Saying I took xyz trade from xyz level, after the fact, doesn't serve a purpose and is open to BSing and could be nothing more than fraudulent reputation boosting.

Late posting of trades on IRC will get you booted off the channel.

Hindsite analysis is OK, hindsite trading is not. I think this is how it should be too.

cheers

 

[Freddo]

Back from dinner...

Hindsite IS useful for commentary, analysis, learning etc.

Saying I took xyz trade from xyz level, after the fact, doesn't serve a purpose and is open to BSing and could be nothing more than fraudulent reputation boosting.

Late posting of trades on IRC will get you booted off the channel.

Hindsite analysis is OK, hindsite trading is not. I think this is how it should be too.

cheers

Whew I was getting a bit worried.
I understand what you are saying...

Just 2 questions
1st whats IRC
2nd hows that gold trade going

 

[wayneL]

Whew I was getting a bit worried.
I understand what you are saying...

Just 2 questions
1st whats IRC
2nd hows that gold trade going

Internet Relay Chat

Similar to Joes Chat Channel but US based and mostly full time futures traders.

The gold trade is OK, only put 10,000 contracts on though, so won't be running past Buffet tonight

Cheers

 

[Realist]

History may not repeat itself exactly, but are you saying you do not believe there are cycles in the market?

Are you saying that there is absolutely no value in trading in hindsight to search out for setups and patterns that may repeat?

Am I missing something? isn't something as simple a double top or bottom
a formation that repeats over and over again?

Maybe I am misunderstanding your definition of hindsight trades or
how you use them but they work for me. they have helped me build a trading plan, fine tune my real time trades both entries and exits and saved me from implementing very very bad trade entries

Charting and the study of past stock prices can not be ignored because a large proportion of the market does it. Hence stock prices are affected by chartists. A self fulfilling prophecy.

The fact is though if there was a foolproof accurate scientific method for charting and making money then everyone would use it and everyone would make money. Of course that is impossible. So charting is not a science.

It is possible that some charting methodologies work, the problem is the more people that use that methodology the less it works because you are competing with more people to buy and sell at exactly the same time.

If you want to chart successfully you are best to invent your own method. Because the less people that use your method the better.

You see chartists affect stock prices, Companies usually do not change day to day, perceptions do. So when backtesting or trading in hindsight you are really just seeing what other chartists did, patterns occur because chartists make them occur!!

I'd suggest most trading methodologies work better in backtesting than when used on future trades because of this phenomenon.

 

[wayneL]

patterns occur because chartists make them occur!!

Not quite

The patterns existed before t/a did.

 

[Bronte]

The patterns existed before t/a did.

How do you know this to be true Wayne?

 

[wayneL]

How do you know this to be true Wayne?

Because a pattern has to be observable before it is tradeable, viz, the pattern must exist first.

 

[Bronte]

Much too tired now. :goodnight goodnight Wayne

 

[Realist]

Not quite

The patterns existed before t/a did.

Correct!!

Chickens create eggs, and eggs create chickens...Whatever came first is irrelevant.

 

[wayneL]

resistance at 1285
support at 1269.5

Which of course means I SSold @ 1285 and covered at 1269.5

And because this is a hindsite trade I had the foresight to put 100's of cars on

Just taking the P!ss

Anyway a reasonably good day to show floor traders pivots. <==== One examp[le of where Realist may be right. Floor traders will trade to and from these levels, thereby creating at least some of the pattern. (however Dow theory, the original t/a was developed by observing existing patterns)

So is Dow theory the Chicken or the egg? Pass!

Say! I've got square of nine in my software, but got no idea what values to put in. Anyone care to enlighten me... genuinely interested. It's asking for "anchor value" and "degree".

Cheers