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Strategies & Market Trends : Systems, Strategies and Resources for Trading Futures -- Ignore unavailable to you. Want to Upgrade?

To: Gary E who wrote (15254)	2/10/1999 10:50:00 PM
From: SE	Read Replies (1) \| Respond to of 44573

Tom really is the guy to ask about systems. You could start here: traderspressbookstores.com Other than that it really is finding something that you like, backtesting it and tweaking it. You could set up a MACD and buy when it crosses the zero line, sell when the two lines cross and go short when it crosses below the zero line and cover when the two lines cross. There that is a system. Now the hard part is finding the right values to set for MACD that will produce the best returns without significant drawdowns. That requires a lot of backtesting and elbow grease, unless you have tradestation software and then it requires an abilility to code the system in what I think they call "easylanguage" or something like that. Moving averages could be a system. Stochatics could be a system. The key is finding something that looks like it works, backtest it and then develop a confidence that it does work and then trade it. As Tom has told me on more than one occassion, once you have a system in place, you must take every trade no matter what. You never know which trade will be a winner and which a loser. You must accpet the losers because based on backtesting...over time the system produced more winners than losers. I have a very simple system. Very simple. However, I have supplemented it with money management to make it better. It is based on two contracts as one position. Stop is set 10 points from the entry signal, period. If the position gains 10 points, stop is moved to breakeven. If the position gains 30 points, one contract is removed. The last contract is removed at breakeven or system reversal. The money management part of it whips me out sometimes, but sometimes it saves my ass(ets). Overall, if I would follow the damn thing signal in and out, I would be doing very well....but I still am having difficulty with that aspect. You will see what I mean if you ever develop something and then try to trade it. A monkey can do it, but I cannot not. Not sure what that says. -Scott