"Trading Day by Day" by Chick Goslin

many thanks klal, yes it's done but it was also done before.
i checked all the display options...very strange...
 
pratbh said:
Where do you guys place your initial stop? Chick decides to exits purely on the basis of the line patterns. If the lines turn against him, he gets out. The problem is you then don't know how much you are risking before you enter the trade, which makes me uncomfortable. I was thinking of placing a stop 2 or 3ATR away. But the problem is the price might trigger that stop off, without the line patterns going against you. So you should have stayed put, but you are out.

Hmmm....tricky tricky...
Click to expand...

Hi pratbh,
Stop’s being triggered only for the price to continue with it’s original direction was one of my (if not the) biggest losses/problems. Lots of people keep saying you must enter your stop loss ASAP. It continued to be a loss for me.
Chick often mentions in his examples “stop’s on a close basis”. Also have another look at the “Mistake” rule again, nothing is 100% & as soon as you know it’s not working - correct it immediately.
I have read more recently on this website about traders NOT using a stop loss & using money management such as mental stop’s & their different views on stop's.
I agree with BB that 150 points on the DJ is about right. I have now stopped entering stop’s when I enter trades. I wait until I’ve taken some profit before entering a stop loss so to lock-in what I have already taken.

however you trade, your continued success will come down to how well disciplined you can be, IMHO.
 
Had a buy signal on my Dow chart at the close yesterday. I am going to miss this one, as I don't want a long term position at the moment. I would probably wait for a pull-back if I was going to buy but I have missed the last two trading opportunities doing that.
 
Bigbusiness - Is your trading based on what your read in the Trading Day by Day book?

Bigbusiness said:
Had a buy signal on my Dow chart at the close yesterday. I am going to miss this one, as I don't want a long term position at the moment. I would probably wait for a pull-back if I was going to buy but I have missed the last two trading opportunities doing that.
Click to expand...
 
No, I have only had the book since Christmas and I am just experimenting with it at the moment. I want to use the ideas for swing trading but at the moment I day trade using other methods.
 
This system rocks !!!

Just wanted to let you guys know that I discovered this site by accident about a month ago and decided to take the plunge. I bought the book on amazon, read it, got the sierra charts and kiwi's goslin studies.

I also decided to subscribe to chick's newsletter, and I must say that the newsletter is well worth it.

Bottom line, I think the newsletter is much more valuable than anything else. Let's just say that his perspective is often right .

I'm a happy subscriber.
 
Does anyone know how to colour code line slopes or place markers on the price chart in the GFT chartbook package? I've managed to sort myself out a simple MACD but haven't got a clue what to next. It works ok eyeballing the lines but I get envious seeing all these little dots on the tradestation charts :). Mind you, I suppose if the slopes not that obvious then maybe the trades not such a good idea?
 
I am having issues with my indicators, I use a 3,10,16 MACD and do not get the same lines as someone else I know or Chick. Here is an example for Bonds on 5/27

bonds.jpg


The ML should be marginally up but you can see it is marginally down. (it looks flatter than it is due to the image compression) What do you guys think the problem could be? Is it possible my data source is inaccurate? I use futuresource.com (they have not replied to my question about this)

Thanks
 
Everything needs to be based on simple moving averages to match Chick's stuff exactly. The chances are that futuresource's macd's are based on exponential moving averages.
 
Thanks Kiwi, I tried and got the same on prophet charts. What platforms are you guys using to match Chick's indicators? I guess I will need either an MACD that uses SMAs or another indicator that does the SL and ML individually (10 day SMA - 3 day SMA and 16 day avg)
 
Most platforms with a decent programming ability should let you build Chick's indicators. I settled with Amibroker (AB) more than two years ago and find there's almost nothing you can't program AB to do. I've constructed Chick's indicators on AB and am very pleased with the results.

og5 said:
Thanks Kiwi, I tried and got the same on prophet charts. What platforms are you guys using to match Chick's indicators? I guess I will need either an MACD that uses SMAs or another indicator that does the SL and ML individually (10 day SMA - 3 day SMA and 16 day avg)
Click to expand...
 
Yes Amibroker is good. SierraChart is good. Tradestation 2000i (if you can get a copy of the old Tradestation) is good. Ensign is good. :)
 
Someone asked about stops. I haven't read Chick Goslin's book but I've looked through this thread and it seems to me that since he (CG) apparently recommends exiting a trade once a profit equal to two times margin has been reached, a stop of around one times margin ought to do the job. Anything more of a risk than that would bring the R/R below 1:2, which wouldn't be that good unless the ratio of winners to losers was considerably more than fifty percent.

Is that how anyone else reads it?

I quite like this notion of using margin as a yardstick. The actual set up Chick recommends, which is on his website, seems to be another permutation on trading pullbacks in trends. As these go, I like Buffy's Slingshot variation best. Having said that, Chick does appear to have some original angles, such as his counting back feature and anticipating changes in advance.

If anyone's interested in trading pullbacks in trends using weekly charts and who has sufficient patience to wait many months before their positions edge into profit I would recommend reading Alan Hull's 'Active Investing'. The gist of it is free online. He uses Multiple Moving Averages to provide a visual picture of consistent trends and then hops on board for the ride. He calls himself a trend jockey.
 
I think they are supposed to be buy, sell and short signals, Looks like he had a bad day being whipsawed by this indicators chronic lag. :p

It looks very pretty anyway.
 
Hi,

I have a copy of Chick's book for sale, very good condition. Shipping from the UK

Make me an offer by private message.

Thanks.

sw
 
Does anyone have a custom indicator for Amibroker which uses chick's lines (MACD with SMAs)

EDIT found what I was looking for, thanks
 
Last edited:
Bigbusiness said:
I have only had the book for 6 months, so haven't had a lot of time to observe the best place to put stops but for the Dow, a 150 point stop from the initial entry point seems to be working well at the moment. I did check a few years back and it works OK as long as the volatility is not too high. I missed the last sell signal, as I thought there might be a bit of a pull-back and I could get a better entry. That didn't happen and there has been a 600 point move down with no buy signals. One of these days I will get it right :)

The attached chart shows some recent entry points and the red lines are roughly at the 150 points stop level.
Click to expand...
i can see djia hitting 60+ today
 
Hi og5,

Where did you find the code? I developed a version recently that has both EMA/MA as options.

Cheers,
Lal

og5 said:
Does anyone have a custom indicator for Amibroker which uses chick's lines (MACD with SMAs)

EDIT found what I was looking for, thanks
Click to expand...
 
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