Bill, I am all for people following their rainbow go for it.
Some contrary opinions, with the intent encouraging some thought around the subjects: > The method is based on Bollinger Bands and sound Price Action >techniques. > I don't consider BB as 'PriceAction' trading but that could be a personal definition. > The author uses a scaling out trade management style which combines > the low risk/high win percentage of scalping with larger profit > potential of swing trading I didn't see anything in Teresa's methods that I would consider to be 'scalping'. I don't have any use for 'scaling' in or out, simply because I believe it serves to confuse us by turning one trade into two or more trades (what is wrong with either of the trades - can't they stand up on their own?). I am a big believer in simplicity - when the chips are down our psychological makeup demands it. > Based on my examination of various charts from 5 mins to weekly, the > technique seems sound with profits about 75% of the time. I have tested 2, or more, of the components involved in this system and spent a deal of time mulling over this time of thing and I don't think they work - I no longer test systems like this - based on past experience I make a discretionary decision to pass them by. > As far as the authors commercial website goes, I have no interest in > it and I believe most members of this group have no interest in it. > Just because someone is a trading educator does not mean they cannot > trade but even if the author is the worst trader in the world, that > does not mean this method does not produce profits. You have to judge > the method on its own merits not based on who is describing it. Money isn't a four letter word - we need good businesses and good business people - they are a pleasure to deal with and make the world a better place. It is a fallacy that successful traders will never teach (why do they need to sell it). IMO they will seldom teach for various reasons but sometimes there are reasons why they do (some of them are good reasons) e.g. - they value fame as much, or more than fortune - they like to share and help others - they want a second income stream - they get bored with trading (I myself am a little tired of having my bum in an office chair and I am cutting back on non-essential computer/internet time) - after x years of successful trading they might have had enough and turn their hand to another facet of the game etc It is rare but it does happen e.g. there is an Aussie educator, who claims to be a successful future trader who teaches 10 students at a time for 10K a year. His story is that one day his wife came home in the late afternoon and he was trading and still in his pajamas - he realized that he was a person who needed social contact, as well as a successful trading career and he sought out an association with a training company. It is conceivable that this could be a true story. The reality of trading doesn't match the fantasy and some people who make it are just not cut out for the social isolation. The other side of the coin is that the msjority of people who set out to become pro traders do not make it. The vast majority of trading touts either didn't make it or didn't even try to make it in the first place. brian_z --- In [email protected], "bilbo0211" <[EMAIL PROTECTED]> wrote: > > Hi scourt2000, > > I don't disagree with most of what you said but I think you are > misrepresenting the described trading technique. > > The method is based on Bollinger Bands and sound Price Action techniques. > > The stop is not a fixed amount, it is placed 1 tick beyond the > opposite extreme of the entry bar, a standard Price Action technique. > > There are 3 sample trades discussed. > > 1st: initial stop size 1.5, 1/2 off at 1.0 pts, other half off at 3.25 > pts, total for trade = 4.25 pts. > > 2nd: initial stop size 1.75, 1/2 off at 1.0 pts, other half off at BE, > total for trade = 1.0 pts. > > 3rd: initial stop size 1.5, 1/2 off at 1.0 pts, other half off at 3.0 > pts, total for trade = 4.0 pts. > > This is not in agreement with your comments about the method. > > The author uses a scaling out trade management style which combines > the low risk/high win percentage of scalping with larger profit > potential of swing trading. > > Based on my examination of various charts from 5 mins to weekly, the > technique seems sound with profits about 75% of the time. > > I would not have made this post if I thought the system did not have > potential. Everything must be thoroughly tested before trading with > real money (including simulation trading). Anything else it just gambling. > > As far as the authors commercial website goes, I have no interest in > it and I believe most members of this group have no interest in it. > Just because someone is a trading educator does not mean they cannot > trade but even if the author is the worst trader in the world, that > does not mean this method does not produce profits. You have to judge > the method on its own merits not based on who is describing it. > > Bill > > --- In [email protected], "scourt2000" <stevehite@> wrote: > > > > > > If you follow the link to its conclusion and find the original author's > > website, take a look at her trading stats this week on the ES. She's > > got 7 years futures trading experience and she's taking 2 pt stop > > losses and half-offs at 1 pt? That's not good. > > > > With a good edge, you can expect to daytrade the ES with no more than a > > 1.50 pt stop loss, a 1.5 to 2.0 payoff ratio and a long-term winning > > pct. average of 60%. > > > > Please, don't ever try and trade the ES with a payoff ratio of 0.50 > > unless you can sustain a 70% to 80% long-term winning pct because a > > more reasonable 60% winning pct with a 1.5 payoff ratio will make more > > gains than a 70%-er with a 0.50 payoff ratio with far less stress > > involved. > > > > Try all the backtesting on ideas you like and you'll see a general > > trend in the good edges: > > > > 1. High winning pcts. come with < 1.0 payoff ratios. > > 2. High payoff ratios come with low winning pcts. > > 3. Systems in the 50-65% winning pct. window come with 1.5 to 2.0 > > payoff ratios. > > > > And, by the way, I'm speaking to the 2-3 ES contract and 1-2 ER2 > > contract traders out there trying to make a living at this, not any of > > you who consider yourself big fishes where you play games with > > unreasonable stop losses and averaging down in your positions. > > > > Just be careful of people freely giving you an edge and then turns > > around and has a website-for-profit to "teach" you how to be a "market > > winner". Because I take one look at her money management, knowing > > full well what's doable on daytrading the ES/ER2 for 5 years, and it > > becomes obvious why she's got a secondary service to teach. > > > > Realistically, it takes anywhere from 2 to 4 years to get good > > (definition: you make a living just with your trading) at futures > > trading, depending upon how messed up your emotional insides were when > > you started. Most drop out within 2 years due to bad money management > > and continually trading with bad edges because they believed too much > > in some other person trying to sell them on their methods instead of > > believing in themselves and learning to trust their own experiences > > over what anyone else had to say. > > > > [I'm not into back-and-forths when I speak from the heart like this. I > > could be wrong, but after 5 years of facing the ES and ER2 in real- > > time, discretionary daytrading, I highly doubt it.] > > > > --- In [email protected], "bilbo0211" <wjdandreta@> wrote: > > > > > > > > http://www.tradingmarkets.com/.site/eminis/commentary/favorite_strateg y/ > > Eminis-Teresa-Appleton.cfm > > > > > > I have not back tested it but checked it on a variety of charts and it > > > seems to work quite well to get at least a scalp. In a strong trend it > > > generates very few signals but intraday strong trends that last all > > > day are rare. > > > > > > If I get time, I will back test it and post the results. > > > > > > Bill > > > > > >
