Slaughterbeck Strategy

[weymola]

Hi,

I am trying to pick a trading strategy, I can trade with in the evenings after work. A client of mine was trying to explain the Slaughterbeck method or strategy, but I did'nt fully grasp it. I have since tried to search for the trading approach on the net, but with no luck. Has anyone come across this method?

Thanks in advance

Syl.

 

[JonnyT]

Sorry never heard of it.

JonnyT

 

[oatman]

Jonny, you must have been slaughtered on Becks at some time

 

[Sharky]

Weymola,

I managed to find two references to it and both were connected with the trader Joe Ross:

http://www.ross-trading.com/futures/trh.htm
http://www.tradingeducators.com/studentsonly/chat_2002_12_10.htm

But nowhere does it actually tell you what it is!

 

[oatman]

Wasn't Joe Ross the Chinese bandleader?

 

[JonnyT]

Oatman,

I don't drink Gnats P!ss

Real Ale all the way for me.

JonnyT

 

[oatman]

Same here mate.....fine real ale, hic

 

[sandpiper]

weymola,

Steve Slaughterbeck was a friend of Joe Ross. I assume your client has the Ross book "Trading the Ross Hook" as I don't think the Slaughterbeck entry is independently documented anywhere else. As far as I know, it is a refinement of one of the methods Joe Ross used rather than a method in it's own right.

As such, you have to know what Ross Hooks are first.

If you don't want to fork out the 100 bucks or so that Ross manuals cost I can lash some charts up with Slaughterbeck entries on them.

 

[options]

If it's not too much trouble. They would be nice too look at, just for the sake of a different perspective.

 

[sandpiper]

options,

OK. Lets try this (again) and then I can add notes if it works.

 

[sandpiper]

OK. That seems to work.

So, in the FTSE daily chart above. 1st July 2003 is point 1 on a Ross 1-2-3 trend reversal setup. Points 2 and 3 are self explanatory. Point 4 is a Ross Hook (8th July). A simple Ross strategy is to trade the break-out of this hook, i.e. buy on the 14th July when the high of the 8th is penetrated (around 4090). The Slaughterbeck refinement of this methid is to buy when the high of any correction bars after the hook (up to 3) are broken. In this case that would mean buying when the high of the 10th July was broken (around 4070).

There are a few more refinements and do's and don'ts to it, but essentially that's it.

 

[sandpiper]

and here's one on the DAX.

 

[Bigbusiness]

This looks similar to part of the set up used by Marc Rivalland in his book on swing trading. I think he only uses it on a pull-back when a recent high or low has been broken. And he waits for 3 lower lows on the price bars before entering on a break-out. Thanks for the charts.

 

[sandpiper]

Bigbusiness,

Sounds similar alright. With Slaughterbeck you can enter on a break of any of up to 3 corrective bars.

As you suggest, there are probably lots of bells and whistles that each of these guys use to make the method their own. Does seem that a lot of them share the same basics though.

 

[mheitkoe]

Slaughterback Strategy -> Ross Hook

Hi Syl,

The method is explained in 'Trading the Ross Hook' written by Joe Ross.
The method was invented by Dr. Steven Slaughterback. It is a way to filter the Ross Hook. In the book are 6 examples where Joe explains how this method works with the Ross Hooks.
As sandpiper said you don't have to buy the book. There are FREE PDFs available about the Ross Hook (The Law of Charts) and the Traders Trick Entry on http://www.tradingeducators.co.uk/resources.htm

Regards
Michael

P.S. Joe Ross will be in London from Friday Oct, 24th to MondayOct, 27th. There will be a FREE 'Get Together' with Joe Ross on Friday,Oct 24th at 7pm at the Comfort Inn Hotel Heathrow. See you there.

 

[sandpiper]

Michael,

Thanks for that. Didn't know that Joe was over here. I'll be trying to change things around so I can make it up to London. Might see you there.