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Strategies & Market Trends : Trading the SPOOs with Patrick Slevin! -- Ignore unavailable to you. Want to Upgrade?

To: Stoctrash who wrote (4797)	5/25/2000 2:03:00 PM
From: Patrick Slevin	Respond to of 7434

Yeah, the gaps are what scare me about the parabolic SAR systems. I went back to them on a test a few months ago. I find using the Daily Session Only on the SP using 30 minute bars, widening out the AF a bit for the volatility, seems to have decent results. The numbers I have, using data on the SP0M, going back to 12/3 show; 86 trades, 49% profitable Ratio of average win/average loss 2.19 Average trade grosses $1393.31 Current Position not included. It is Long from 1385 with the SAR at 1404.70 --------------- <following them like I should...well,,, that's another thing.> I hear that. I don't trade it because when it kicks in it's usually against the short term logic. In other words, if it takes a SAR into a Long it's more than likely it's after a bullish move that makes the logic of taking the trade at whatever point totally illogical. So instead I use it for an indicator of trend or as a filter....depending on the situation. But trading it goes against my nature. Like yesterday, I went Long in the 1360s (SP0M) and that thing kicked in at 1385. It was the trade to take in hindsight, and actually as I recall it looked good no matter what. But normally after a twenty point rocket ride move it's sort of disconcerting to allow a system to take one Long without hesitating for a retrace. Kinda like begging to be the guy who Buys the Top and Sells the Bottom.