Craigaudio's ER2 Buyzone Strategy

trading strategies and money management discussion, code, results

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jayjay121
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Postby jayjay121 » Mon Jan 14, 2008 7:16 pm

if you look at your er2 charts today, you'll see so far there has been 2 clear shorts which would have made good profit for today..........but guess what i actually got my first two trades wrong today and although i followed the buyzone, my stop got taken out twice before it actually moved down...........bit gutted but maybe i should have a bigger stop like craig audio, or what about a stop and reverse approach, always in the market?

looking back in hindsight though if i had a bigger stop, i would have made money today...........i thought by having a smaller stop i may be able to just concentrate on winning ratio, but now i think about it you really do need a larger stop,


jason

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Postby eudamonia » Mon Jan 14, 2008 11:56 pm

"then Buy Num2Trade shares next bar at market;"

READ MY LIPS - NO MARKET ORDERS. NONE, NADA, ZIPO, NEVER!

This is why your backtesting is No GOOD Ken.

Nobody listens to a word Avery and I say.

LIMIT ORDERS ONLY. Only long-term traders and amateur scalpers use market orders all the time. Amateur in this game = LOSER!

I use Stop Limit entry orders, Stop Limit exit orders and Profit Target Limit orders! Avery uses Limit orders only. Do you see a common connection here? Gee!?

Think about this! If you SURRENDER 1 tick at entry and 1 tick every time you are stopped out that is about 1.5 ticks per trade on average. With a given expectancy of 1.9 ticks per trade HOW can you make hardly any money?

Also there is NOTHING in this code that indicates that a second trade will be initiated if the first trade fails. This is a crucial part of the method.

If you are going to PLAY at being scientific at least please get the facts straight. Thank you.

Sorry to come off as being a #$*! but I'm tired of these pointless discussions of wanna be traders who are obsessed with "backtesting". Only REAL Trading = REAL Money PERIOD. Anything else is fantasy. There are too many ways to be deceived by "backfoolishness".

Edward

P.S. my comments about backtesting are not applicable to "real programmer traders". How do you know if you are a real programing trader? If your name begins with Michal, if coding 300 pages of code is what you did before breakfast, or if you professionally manage your own hedge fund (which has averaged better than 60% for the last 10 years), or if you know how to code your own Genetic Algorithms and have better programs written for GAs then Lawrence Chan (of NeoTicker) then you MIGHT be savvy enough to do your own programmable backtesting. OTHERWISE you are an AMATEUR. Stop kidding yourself and start TRADING no stroking your "backtesting" ego.
Eudaimonia (pron.: you-die-moan-e-a) (Greek: εὐδαιμονία) is a classical Greek word commonly translated as 'happiness'. The less subjective "human flourishing" is often preferred as a translation.

Ken_S
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Postby Ken_S » Tue Jan 15, 2008 4:18 am

....here we go again.
How many posts did it take to resolve the "TS can't backtest lower than 1 minute resolution" debate? I had to say the same thing 5 different ways with someone else putting false words in my mouth.

Using limit orders on entry (PT exits already use limits) showed a profit of $450. I wanted to test the "dick for a tick" idea, but didn't see much difference.

I've found your posts in other threads to be very informative, factual, and supportive of other traders on this forum. Why this thread is different, I don't know. Have we met before? LOL.

I've lost more money in opportunity costs trading realtime with other strategies being a "dick for a tick" than its ever saved me. Granted, they had a much higher expectancy than 2 ticks, but point taken with respect to this system. 2 ticks is a slim edge, so any little price improvement is big with the rules as they are.

"Also there is NOTHING in this code that indicates that a second trade will be initiated if the first trade fails. This is a crucial part of the method. "

I'm sorry, but simple incorrect, read the code again.
If Entries = 1 and marketposition = 0 then begin
If positionprofit(1) < 0 then begin
Value3 = 1;
if entryprice(1) - exitprice(1) > 0 then Value4 = 0;
if entryprice(1) - exitprice(1) < 0 then value5 = 0;
end;

If positionprofit(1) > 0 then Value3 = 0;
end;

This makes one trade/day if profitable, 2 if first one isn't and in the opposite direction. That's the fact, you get them straight!

Excuse me for not being part of the master race here at Kreslik. I make a statement and back it up with facts...no drama, emotion, or name calling. I don't claim to know it all. Some things are fact, others a matter of opinion or personal preference. I ask questions and offer answers the best I can. I said everyone needs to make their own judgements on what I was posting. If you take them so personal, then that's on you. There's no ego here.

IMO, there is no Buyzone system because everyone trades it differently. Look at the manual, you have many suggestions on how to exit. No one is doing it the same. Everyone needs to find the way that fits them best, or don't trade it. This is what many can't/don't want to understand. So many want to be spoon fed to profitability. Avery, like everyone, has a unique set of beliefs which derived the buyzone concept. So many are looking to just duplicate what other profitable traders are doing, with a different set of beliefs. Not the best path..IMO. I think this is the source of Avery's frustration with explaining the BuyZone to people.

As I've said before, backtesting is just a tool in my box. Not the Holy Grail.

Ed, do you mind posting what your entry and exit prices were for ER2 today. I saw only one BuyZone trade for today.

Good Trading,
Ken

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Postby TheRumpledOne » Tue Jan 15, 2008 5:08 am

The Buy Zone is just too simple for most people.

They read the rules.

But they must not believe the rules.
IT'S NOT WHAT YOU TRADE, IT'S HOW YOU TRADE IT!

Please do NOT PM me with trading or coding questions, post them in a thread.

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eudamonia
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Postby eudamonia » Tue Jan 15, 2008 6:44 pm

Ken,

Again I can only re-iterate that I make consistent money with the BuyZone using this very setup on the ER2. I'm sorry that you "think" that 2 ticks net expectancy is not a significant edge. I believe that this giant misconception is perpetuated because there is little information out there about scalping for those who are not in "the know".

Sorry I missed that bit of code. However, your stops are still at market. That means you surrender on average about 1 tick per trade.

Open 704.00, long at 705.10 exit at 706.10. Easy money :)

Edward
Eudaimonia (pron.: you-die-moan-e-a) (Greek: εὐδαιμονία) is a classical Greek word commonly translated as 'happiness'. The less subjective "human flourishing" is often preferred as a translation.

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Postby jayjay121 » Wed Jan 16, 2008 5:55 pm

today was a beautifull day for trading the buyzone on the er2........


jason

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Postby brwkem » Wed Jan 16, 2008 6:33 pm

Can someone summarize the buy zone values for er2
open + and open -

thx.

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Postby zeller4 » Wed Jan 16, 2008 7:49 pm

From the First Post in this thread...


Buyzone Parameters:

Trigger Long: Open Price + 11 ticks
Trigger Short: Open Price - 11 ticks
Target: 10 ticks
Stop Loss: 12 ticks

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Postby jhanley » Sat Feb 09, 2008 12:55 am

I am so surprised there is not more interest in this thread. I have been forward testing the buy zone on the ER2 and have to say that it is very hard to lose money with this concept. :)

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Postby eudamonia » Sat Feb 09, 2008 3:06 am

jhanley,

Agreed. I find it very sad that people aren't interested in making easy money. They are too busy back testing lol.

Edward
Eudaimonia (pron.: you-die-moan-e-a) (Greek: εὐδαιμονία) is a classical Greek word commonly translated as 'happiness'. The less subjective "human flourishing" is often preferred as a translation.

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