The General
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A reply from the biggest advocates - TGM and MartinD (thread starter) would be good. Come on lads, normally we can't shut you two up !! 
The General
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Mate they're both usually sat on this board all day long....
Chick uses SMR charts and he updates them by hand. They are simply as follows: a 3/10-16 simple Macd, and a 49 period simple moving average. These make up the 3 lines as described in the book. However, as stated in the book. You can use any 3 lines. A CCI and a Long moving average...etc.. You can go to www.smr.com and see them for free via pdf. Any 3 lines you are comfortable with will do. It is not to push any service. He only tells you what he uses. In fact, he does not go into the exact formula of SMR (he does so in a round about way). I do not have SMR's EXACT formula. However, I just disclosed what I do to emulate it. If you look at the chart MartinD submitted you will see them.
Mon General,
Sorry it took 16 minutes to respond. I am usually trading. The reason I usually respond quickly is that I have my email open and this board has me subscribed to the post.
In regards to the ET board. Baron will put it up for review eventually. I have not see anything on that board in terms of trading day by day. They may be referring to Chicks first book he wrote in the mid 90s. Tradingdaybyday is his second book. The reason he wrote a second book is (according to him) that he was unhappy with the first. In regards to the marketing etc. I will say that his first book was not anywhere near as good as his second (I met him through Linda Raschke/SMR after his first book).
When I get a chance I will find what I first wrote about Tradingdaybyday on another board. Someone had found out that I knew Chick and was familiar with Linda Raschke's work and was asking about the similarities
Sorry it took 16 minutes to respond. I am usually trading. The reason I usually respond quickly is that I have my email open and this board has me subscribed to the post.
In regards to the ET board. Baron will put it up for review eventually. I have not see anything on that board in terms of trading day by day. They may be referring to Chicks first book he wrote in the mid 90s. Tradingdaybyday is his second book. The reason he wrote a second book is (according to him) that he was unhappy with the first. In regards to the marketing etc. I will say that his first book was not anywhere near as good as his second (I met him through Linda Raschke/SMR after his first book).
When I get a chance I will find what I first wrote about Tradingdaybyday on another board. Someone had found out that I knew Chick and was familiar with Linda Raschke's work and was asking about the similarities
TGM - thanks for your reply. The trading scene is full of sharks - I'm sure you can understand any scepticism.
Looking back it does seem that the comment WAS directed at his first book. However I did see a mention of SMR in the contents page of his second which aroused some suspicion.
If it's all it's cracked up to be then Chick's book must be worth a read. I'm still wading through Joe Ross's second tome . . . . heavy going but already paying for it's self - in my case more in terms of money saved through not entering trades that would have been losers. Anyway I digress. . .
Best regards
FN
Looking back it does seem that the comment WAS directed at his first book. However I did see a mention of SMR in the contents page of his second which aroused some suspicion.
If it's all it's cracked up to be then Chick's book must be worth a read. I'm still wading through Joe Ross's second tome . . . . heavy going but already paying for it's self - in my case more in terms of money saved through not entering trades that would have been losers. Anyway I digress. . .
Best regards
FN
Triax,
You can develop and backtest a system based on the book. I have got a couple of developers who are in the process of doing this for me right now. I was just saying it is not written from a system traders perspective.
In a couple days, I will put a synopsis that I wrote to someone else. It may help out a few of you guys. It is very long. You will know where I am coming from.
Fastnet,
Joe Ross is a good guy and has written some decent books. I just never recommend them. They are expensive and people either love them or are pissed they paid 150 bucks for the book (very dicey). I have been around a long time and always get asked what to read etc... Up until the past year, I have always given canned responses. Simply because, I know how difficult it can be for approaches to be duplicated. Chick's book is different from many ways (read Robertos comments). That is why I recommended it. I realise people are always sceptical and challenge every point in every way. That is the reason I never recommended anything in the past!
It is a 65 dollar book. To cheap in my opinion. Read it or don't read it. I will say no more.
TGM
You can develop and backtest a system based on the book. I have got a couple of developers who are in the process of doing this for me right now. I was just saying it is not written from a system traders perspective.
In a couple days, I will put a synopsis that I wrote to someone else. It may help out a few of you guys. It is very long. You will know where I am coming from.
Fastnet,
Joe Ross is a good guy and has written some decent books. I just never recommend them. They are expensive and people either love them or are pissed they paid 150 bucks for the book (very dicey). I have been around a long time and always get asked what to read etc... Up until the past year, I have always given canned responses. Simply because, I know how difficult it can be for approaches to be duplicated. Chick's book is different from many ways (read Robertos comments). That is why I recommended it. I realise people are always sceptical and challenge every point in every way. That is the reason I never recommended anything in the past!
It is a 65 dollar book. To cheap in my opinion. Read it or don't read it. I will say no more.
TGM
The General
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Roberto,
So do you anticipate utilising the book's methodologies yourself at all ?
TGM,
How long have you been using this technique ? And I take it that it has been a great help to you considering your endorsements ?
So do you anticipate utilising the book's methodologies yourself at all ?
TGM,
How long have you been using this technique ? And I take it that it has been a great help to you considering your endorsements ?
The following is a post I did for another board. I was asked specifically about Linda Raschke. She was doing a seminar for Tradestation and folks wanted to know if I knew her and what I though of her. I explained to them that she is a great gal and very friendly and responsive. I have talked with her a handful of times and sincerely like her. With that said, I stated that I would not go to her seminar ---nor would I recommend it. Of course this solicited several responses and folks asked me to elaborate. I guess they considered that provocative or something. So I wrote the following for them:
"In the early 90’s, I came across Linda Raschke’s telerate seminar on the 5 trading patterns. She had done this seminar for Dow Jones telerate. I have been hooked on the 3/10/16 simple Macd ever since. These 5 trading patterns served me well. In fact, to this day, it is (in my opinion) her most simple, elegant and useful seminar. I pretty much bought everything she put out for telerate seminars. I also became a subscriber to Smr charts (www.smr.com). Smr charts utilize this same indicator. You can go to the website and see and download for free their charts via pdf. You can also go and download the indicator on this website (I believe).
Now if anyone has heard the terms anti’s, first cross (also called short skirts), sling ---well these are terms Linda uses for the oscillator patterns. In the mid 90’s, it came to my attention from the owners of Smr that a very successful trader out west (Chick Goslin) was going to be a publishing a book on how to use their indicators. I had always made it a point to contact anyone who was successful in using the tools I had employed. Chick’s book came out and I read it. I did not fully understand what he was trying to say. Partially because the man had never written a book before. Also, the way he used the indicators was slightly different (in fact I considered it heresy). Since I was successful at that time. I put the book aside.
A couple years later, I happened to have a conversation with an acquaintance that really started to make me think. It was about one of the positions Chick was in. If I remember correctly, he was on the right side of a move that I was on the wrong side of! I made it a point to call him. He was then doing a teaching newsletter. After talking about the pattern at hand and telling him that I was short off this particular pattern in the same commodity. He immediately replied. “It is in a bullish status it will not be lower for a at least 10 trading days --it is fully concurrent to the upside”. Well since I was loosing money on the trade and he was making money. I decided maybe there was something missing. And there was.
The patterns that Mama Raschke teaches are effective. However, I now view them as incomplete. Intraday, it will not hurt you (esp. during big bull markets). Because, she is giving you other indicators to use to qualify trades. But for position trading it is incomplete. Good-- but incomplete. Just using the 16 period moving average of the 3/10 as qualifier does not go far enough. There is much, much --more to it than that. Linda performed zillions of tests and said for years it does not matter where the 16 is located ---it just matters if it is above or below 0. You know --16 below 0 look to sell the first rally in the 3/10 (hence, first cross) and if you do this well you have a 60% chance of the price reaching the previous swing low. Well that is true and false. It depends on whether the market is in an up trend or downtrend ( as quantified by the 49 period moving average). Once that is established, testing produces completely different results and it makes a big difference to as where and how the 16 is positioned. This revolutionized my trading. It allowed me to take a quantum step forward by taking a step back. It did not take long to figure out by looking at past trades as to why the patterns were making me money in some places and loosing me money in others. It was like getting hit on the head with a hammer.
I cannot write anymore this evening. So feel free to leave comments or questions. Chick has written a new book. It goes into much more detail and is much better than his first book. You can go to www.tradingdaybyday.com and check it out. His concepts have been simplified over decades of using the same indicators. His teaching newsletter is very inexpensive (50.00 dollars a month). For the record, I have no financial connections to him at all. But if you are using the 3/10/16 or any other momentum oscillators like the CCI or Stochastic or Macd. I would check it out. It is not presented as a book for day traders. The concepts are just as valid whether trading on daily charts or 15 minute charts."
That is all I have to say on the issue. I normally do not spend time on trading boards. But will come back from time to time to answer your questions as best I can. However, if you read all the previous posts from people---you should get most of questions answered.
Cheers and happy trading
TGM
"In the early 90’s, I came across Linda Raschke’s telerate seminar on the 5 trading patterns. She had done this seminar for Dow Jones telerate. I have been hooked on the 3/10/16 simple Macd ever since. These 5 trading patterns served me well. In fact, to this day, it is (in my opinion) her most simple, elegant and useful seminar. I pretty much bought everything she put out for telerate seminars. I also became a subscriber to Smr charts (www.smr.com). Smr charts utilize this same indicator. You can go to the website and see and download for free their charts via pdf. You can also go and download the indicator on this website (I believe).
Now if anyone has heard the terms anti’s, first cross (also called short skirts), sling ---well these are terms Linda uses for the oscillator patterns. In the mid 90’s, it came to my attention from the owners of Smr that a very successful trader out west (Chick Goslin) was going to be a publishing a book on how to use their indicators. I had always made it a point to contact anyone who was successful in using the tools I had employed. Chick’s book came out and I read it. I did not fully understand what he was trying to say. Partially because the man had never written a book before. Also, the way he used the indicators was slightly different (in fact I considered it heresy). Since I was successful at that time. I put the book aside.
A couple years later, I happened to have a conversation with an acquaintance that really started to make me think. It was about one of the positions Chick was in. If I remember correctly, he was on the right side of a move that I was on the wrong side of! I made it a point to call him. He was then doing a teaching newsletter. After talking about the pattern at hand and telling him that I was short off this particular pattern in the same commodity. He immediately replied. “It is in a bullish status it will not be lower for a at least 10 trading days --it is fully concurrent to the upside”. Well since I was loosing money on the trade and he was making money. I decided maybe there was something missing. And there was.
The patterns that Mama Raschke teaches are effective. However, I now view them as incomplete. Intraday, it will not hurt you (esp. during big bull markets). Because, she is giving you other indicators to use to qualify trades. But for position trading it is incomplete. Good-- but incomplete. Just using the 16 period moving average of the 3/10 as qualifier does not go far enough. There is much, much --more to it than that. Linda performed zillions of tests and said for years it does not matter where the 16 is located ---it just matters if it is above or below 0. You know --16 below 0 look to sell the first rally in the 3/10 (hence, first cross) and if you do this well you have a 60% chance of the price reaching the previous swing low. Well that is true and false. It depends on whether the market is in an up trend or downtrend ( as quantified by the 49 period moving average). Once that is established, testing produces completely different results and it makes a big difference to as where and how the 16 is positioned. This revolutionized my trading. It allowed me to take a quantum step forward by taking a step back. It did not take long to figure out by looking at past trades as to why the patterns were making me money in some places and loosing me money in others. It was like getting hit on the head with a hammer.
I cannot write anymore this evening. So feel free to leave comments or questions. Chick has written a new book. It goes into much more detail and is much better than his first book. You can go to www.tradingdaybyday.com and check it out. His concepts have been simplified over decades of using the same indicators. His teaching newsletter is very inexpensive (50.00 dollars a month). For the record, I have no financial connections to him at all. But if you are using the 3/10/16 or any other momentum oscillators like the CCI or Stochastic or Macd. I would check it out. It is not presented as a book for day traders. The concepts are just as valid whether trading on daily charts or 15 minute charts."
That is all I have to say on the issue. I normally do not spend time on trading boards. But will come back from time to time to answer your questions as best I can. However, if you read all the previous posts from people---you should get most of questions answered.
Cheers and happy trading
TGM
The General
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TGM,
Thanks for that. Have just been informed that Global Investor bookshop has mailed out the pre-ordered copies today. I for one am looking forward to an interesting read.....
Thanks for that. Have just been informed that Global Investor bookshop has mailed out the pre-ordered copies today. I for one am looking forward to an interesting read.....
My copy has also arrived from Global-Investor this morning. They have excelled themselves in beating the 10 working days they quoted (only took 7 working days) and also saving the considerable postage of getting it from the US.
Initial impressions are that it looks an interesting and well thought out book. I will report back when I have read it (although given the number of pages and density of type, this will take a little while).
Initial impressions are that it looks an interesting and well thought out book. I will report back when I have read it (although given the number of pages and density of type, this will take a little while).
Reading the extracts on his web site it looked like he favours using price action + trends as his strategy.. but looks like he also uses technical indicators???(MACD/Moving Averages) .. sort of linked to the Tarding on the dark side thresd on one of the other forums on this site... How does this book compare to the "Trend Following - how great traders make millions..." bu Micheal Covel... from the extracts I have readon Goslins web site seem very similar...??
