Champion Trader

JonnyT

Senior member
2,560 22
Don't waste your money

Hi folks,

Having seen the Champion Trader manual I can honestly say don't waste your money.

It will only work when markets are trending strongly, when incidently almost anything works.

Markets do not trend strongly for the majority of the time so be prepared for the chop. Sustained periods where you will make little or nothing.

The stop strategy is simply laughable in the first incarnation so seems to suggest to me that the Guy who wrote the manual might not have traded for too long.

The risk strategy is a joke. Trading futures (on the indices) you have to be stark raving mad to risk 10% of your capital never mind 20% on a single trade.

In my experience a simple breakout strategy performs better, as does Hourly RSI 14 crossing zero.

Once you have a decent stop strategy in place, the really difficuly bit is where to take profits. Again in testing points targets seem as good as anything mechanical, else EOD for day trades.

Like Chartman I have searched and searched for the Holy Grail and now know it doesn't exist. Trading intra-day simple moving averages on 1 minute charts give a good indication of trend so just go with the flow, when price is near the MA (I use the 30 and 60MA)

JonnyT
 

Helenqu

Established member
841 3
Re: Don't waste your money

JonnyT said:
I have searched and searched for the Holy Grail and now know it doesn't exist. JonnyT [/B]


We had some fun looking though didn't we :)
 

ChartMan

Legendary member
5,580 46
I wasted 2 years of my life looking :( I only recall having one brief moment of excitement when I thought I had found it........ Turns out it was something scribbled on the back of a Monty python book.
 

Skimbleshanks

1
2,325 16
I think it all depends on whether you are looking for a) THE Holy Grail, or b) YOUR Holy Grail.

The former doesn't exist, the latter does. You just have to carry on looking until you find a trading strategy which fits your personality, style of trading, risk tolerance, time fractal and size of trading pot.

One size does not fit all, and it never has done.
 

JonnyT

Senior member
2,560 22
Thats what I keep telling the wife

One size doesn't fit all
 

orchard

Active member
163 2
Hi All.
JonnyT - why do you assume that just because we bought a 'system, we are looking for the 'Holy Grail'. The fact is, that to a complete novice like me, the CT book opened up possibilities. It does more than give a system, it EXPLAINS the stock market in simple terms - OK experts may laugh, but it certainly taught me something. Doing paper trading, what it does is give you focus. When following trends etc, it is impossible not to take in some knowledge of the movement of shares. I don't think I will ever be an expert, but I am learning.
By the way Scrimbleshanks, thanks for your kind words - yes I feel trading with what is comfortable to you is important.
Enough moans.
Happy trading all.
 

JonnyT

Senior member
2,560 22
Hi Orchard,

Having focus and keeping records is to be commended, probably also a requirement for success.

The point I make is that trading the basic Champion Trader system using the amounts of capital proscribed (20% risked per trade) is a sure fire way to lose your trading capital.

I'm assuming here we are talking Index Futures or Index spreadbets which is after all the market the system is aimed at.

Even the best system in the world will suffer strings of losing trades in a row. I have myself suffered 8 consequitive losing trades following a mechanical system this year alone on two seperate occaisons.

Now you need balls of steel to continue trading after such enevitable failure (basic probability theory). If you traded 20% of your capital a wack imagine how depleted your reserves would be after that little lot.

The single most important factor in trading is money management. Get that right and profit should flow.

JonnyT
 
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orchard

Active member
163 2
Thanks JonnyT,
Sorry I fired off at you - I had not appreciated you were talking about % of capital - No I would not be that stupid. On my paper trading I am working only on points, not pounds. My real trading is much more limited and I am simply 'dipping a toe in the water' so to speak.
Once again thanks for your clarification.
Orchard.
 

tinhead

Newbie
2 0
Paul B
So you gave us 2 examples of two winning trades but why not give us examples for the other 90% your losing trades, 80% of your post is copied from sections of another well known trading website,So how can you give advice & tell someone to use level2 when you have no idea how to use it yourself ,Level2 is not easy to use and takes a lot of time to study and master and any new traders would simply get taking to the cleaners,i trade for a living and do quite well using l2 but still get caught out big time on occasions i would say to someone who is interested in using it to read the posts of people who know what they are talking about Naz ,and not some garbage of a newbie 2pennie ago spreadbetter.
 

JonnyT

Senior member
2,560 22
Hi PaulB,

Mathmatically you are doomed to failure.

To maintain success you require a fantastic win ratio, and that no major event goes against you. Unfortunately they will.

You will not survive the next five years without being blown out.

JonnyT
 

Bryan Greenham

Newbie
9 2
As a novice trader I have tried the CT system myself only on paper. Using end of day data from sharescopeand trading 4 Indices and 7 FTSE 100 shares I found the system records an overall loss.
My view is that its a good entry system but a bad exit one using end of day data.
I guess if I had access to real time data preferably from ShareSentry or Reuters pagers i would give the system only a couple of points stop loss and would close out the psoition immediately it moves against me.
Any views or experience welcome.
 

ChartMan

Legendary member
5,580 46
My feeling about a good entry is one that doesn't move against you by more than, say, 0.25%-0.5%.......One always has to allow some movement against you, and this is where support and resistance comes into play. If you want to play a move, it should be close to support, such that if the move fails, the support point is not too far away from your original entry, thus minimising the loss. You have to assume that if support fails, the whole move will fall considerably further.
There is no definitive answer to this as each person's pain threshold is different. The common rule is called " minimising losses"......
 
 
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