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Strategies & Market Trends : Befriend the Trend Trading -- Ignore unavailable to you. Want to Upgrade?

To: Ken Adams who wrote (14492)	1/7/2001 8:28:12 AM
From: Knyyt	Read Replies (1) \| Respond to of 39683

Hi Ken, Yes, you are correct, it is faster. I had to really do some thinking (And still am partly) about the length of the 3rd MA. My thinking on the 20 period MA: Faster signal,which possibly could result in more profit, but also prone to more whipsaws, which wouldnt do much good for my account. I dont deal well with losing trades. I kinda created this system to really fit my personality, hence the initial stop,(Very small loss if hit,eases fear of entry). Went with the 50(Undecided whether i should use 50 or 40,but sticking with 50 for now). My thinking for going with the 50 is, the trend is more definate/stronger(if anything in trading could be called definate)so i have less chance percentage wise of being wrong,and thus incurring a losing trade. With a nice stable of stocks, i felt/feel i can afford to give up a few points,(Dollars) by entering the trade at a later point in return for higher percentage of winning trades. For myself, and my trading inventory , its a win/win. Which brings me to this. (I write this for everyone) I think a BTT-MAX type system using MA's, OBV, or whatever indicator you prefer to use, is potentially profitable as long as you design it to fit yourself. I hate losing money, so i use stops, ALWAYS. i like to trade with the dominate trend, so i use a longer period 3rd MA. I hate leaving money on the table, to i use a tight trailing stop off lows or highs. i want to be still doing this in 10 years, so i am treating this as a business. I have gotten ALOT of PM's about this "method". Its not a holy grail, in fact its stupidly simple. I got over 5Grand in trading books over 10 years,(Love to read about trading)and i end up with a simple MA trend following system. Know thyself, and then build your system around yourself. Regards, and sorry for ranting, Knyyt

To: Ken Adams who wrote (14492)	1/7/2001 7:31:34 PM
From: ru2	Read Replies (2) \| Respond to of 39683

Ken, if I understand Kynt's method correctly you can't just look at the one chart and decide how well the method works. Since you are only trading one side of the market based on the 50 ma it is no longer swing trading in the sense of going long and short on each trade. Where your money is when you are laying out is part of the equation. If Beas gives a short signal based on the 8/5 signal that you don't take, but your money is in another stock that does well in the same time period you may do better than taking both the long and short signals of a single stock. I think you need to compare a basket of stocks using the 8/5 method to the same basket of stocks using the 8/5/50 method. I was using 8/5/30 for a while though I was also using fib retrace and trend lines also. It worked but I am looking for a more mechanical method that gives my emotions less room for causing trouble. The method Kynt's using makes sense to me except his experience with stops is different than mine. I have found that they stop profits as often as they stop losses. I think there are some things I need to learn about stop management. Ru2