from what I understand the STS method uses pyramiding to really make money from trend following. How do you incorporate the dynamic pyramiding and stop loss nature into the backtesting system?
Without that being accurate the testing results won't give a true and accurate picture.
I have incorporated the dynamic pyramiding and stop loss as per the book into my backtesting. The system is easy peasy to code in VBA. For instance the basic performance of the system was only around 500 points using the intial entry and exit criteria. This multiplied by a factor of 10 by incorporating the Pyramiding...
The results are accurate for the Dow. In fact they are overstated as they do not allow for commission, slippage etc.
I personally will not trade this system as I have much better ones for EOD trading.
This is my first post on T2W so forgive me for my ignorance.
I have also purchased the STS workbook and am wondering what kind of setup I need to trade EOD. In other words, what chart package do you use and for what markets. I have looked at the various sites posted on T2W, like ADVFN, BigCharts, Yahoo, StockCharts and I have signed up to FREE demos of Sharescope, Spacejock, esignal, myTrack, but I want one that is user friendly, costs nothing and caters for the main indicators. Would I need to use different chart packages for different markets?
Personally I have been using Yahoo for its ease and coverage for EOD data.
Any ideas welcome, as I am new to this game and only want to trade part time for a bit of extra cash?
Also, Im looking at the various SB platforms. I want to start with minimum capital, so I can see whether I am any good. Is Finspreads the best for this, even though their spreads are larger than other SB's.
p.s. this stuff makes fascinating reading, Im hooked :!:
I checked out a lot of systems too and ended up with the analyzerxl package suggested with the spreadtradingsecrets book.
There is a link somewhere in the email report you receive. It takes some getting used to but provides eod data for free across many markets including international shares, futures, currencies and commodities.
It only takes a few moments per day to get sorted and I can download all the data I need at the push of a button.
i went to the spread trading secrets website and after a couple of minutes had a feeling of deja-vu......i'd read all this before....then i dug out one of vince stanzione's flyers promoting his spread trading course.......the wording is almost exactly the same.....who's copied who?.....there is absolutely no way it can be a coincidence.....theres more chance of WMD being found in iraq!!
I'm new to this site but after having alook at the various threads am totally hooked.
The STS system looks interesting and it's always good to hear from people who are actually using it. I currently work full time so only have limited trading time and so am ideally looking for a system I can trade on EOD data.
Can anyone recommend other EOD trading systems free or otherwise that they're using successfully?
I have been focusing on a few things (other than trading and computers) lately but have continued to follow the STS system with good results. I received an email from the author recently highlighting a good trade (that I am in and is still open) in the AUD/USD forex. So far have picked up over 400 points from initial entry (sept) and a multiple of that with the pyramiding techniques. Trust me when I tell you winning trades like this feel great! I also had a great winner in the same contract over a few months from May worth 500+ points.
Have had other success with DAX and DOW among a number of other great trades.
Of course there have been losers too. I have been whipsawed a number of times and this is annoying and would like to reduce the number but afraid of missing the good moves if I modify or try to change the system.
For some reason Finspreads still allow me to trade in small bets even though I have passed their 8 week trial so I can virtually trade any market with the exact risk level that my account can handle. I have been more aggressive on my position size than recommended by CB but this has paid good dividends.
Despite this success, (you can tell I am excited and pretty pleased with my intro to trading) but can't believe it only takes a short time each day to trade it. The temptation is to give up work and relax whilst trading . I know this would change my trading stress level because I would be dependent on winning rather than being unemotional about it all.So I have been building my bank rather than spending winnings so I can trade bigger bets and eventually pursue the dream - whatever that will be.
Now things are under control in the world of the Carnivore I shall try to spend more time online and keep you updated on my results. (the next post will probably have me all miserable because I have had a string of losers rather than big winners - keep your fingers crossed that is not the case!)
I must say that I haven't used the system since I purchased it, as I am sceptical of the position sizing rules and big stops. As Finspreads only allow minimum of 50p, you need £10k+ to use this system effectively.
Anyway, Im much more interested in using TA now as I feel that I am actually learning something, not just waiting for a mechanical breakout signal.
What markets did you do your backtesting on? It was suggested to me that the best markets are the currencies and some of the 'trending' commodities. I can certainly vouch for the currency trades (they have been excellent).
If you have a chance perhaps you could post some of the results for the various markets. I know it would be of great interest to me and possibly some others.
Pitbull, I had the same account size concerns but am using a 'notional' account size that is based on expected drawdowns. The gains a re bigger but so are the risks. However, it means I can trade the STS method with only a few grand.