Fascinating twist on TRO's midpoint entry

trading strategies and money management discussion, code, results

Moderator: moderators

casinoman
rank: <50 posts
rank: <50 posts
Posts: 26
Joined: Tue Aug 22, 2006 10:43 pm
Reputation: 0
Location: usa
Gender: Male

Postby casinoman » Wed Sep 26, 2007 1:23 am

Just like chart candles, one up the next down, lol. Both potential money makers if exploited correctly.
"Technicians never die - they just chart away"
Trade like a Lemming but don't jump off the cliff like the others

Please add www.kreslik.com to your ad blocker white list.
Thank you for your support.

michaelangela
rank: <50 posts
rank: <50 posts
Posts: 7
Joined: Tue Jul 03, 2007 5:06 pm
Reputation: 0
Gender: None specified

Postby michaelangela » Wed Sep 26, 2007 5:16 am

I read some things which led me to material by Van Tharpe which talks about the importance of the exit, money management, and how it is basically the odds. I am a beginner so I can't say much from experience except that it is because of those principals that I can still trade now! :-P The concept of expectation was a new one, too. Lose most of the time, but with the right money management your wins, though fewer, offset your losses more than enough to not only compensate but to lead you into wins.

There is another thread you both were on... the $1,000,000 question was it? Makes me think... get the ATR(10) or ATR(20) for a particular timeframe, and try to earn at least half of that over that next time frame. Buy at the timeframe's open, if it reverses enough, reverse the transaction to a short sell. One day I'll code it up... :-P

casinoman
rank: <50 posts
rank: <50 posts
Posts: 26
Joined: Tue Aug 22, 2006 10:43 pm
Reputation: 0
Location: usa
Gender: Male

Postby casinoman » Wed Sep 26, 2007 5:46 am

OK, I'm a little dense. What is ATR(10)?

Have read some of Van Tharpe's stuff and postings. Enough to get a pretty solid handle on his concept. His ideas certainly germinated with me.

To get "real" numbers to compute expectation requires a lot of trial sets. Would seriously caution you to be leery of expectations that are large without a lot of depth in trials.
"Technicians never die - they just chart away"

Trade like a Lemming but don't jump off the cliff like the others

User avatar
TheRumpledOne
rank: 10000+ posts
rank: 10000+ posts
Posts: 11440
Joined: Sun May 14, 2006 9:31 pm
Reputation: 45
Location: Oregon
Real name: Avery T. Horton, Jr.
Gender: None specified
Contact:

Postby TheRumpledOne » Wed Sep 26, 2007 1:06 pm

ATR(10) - 10 PERIOD AVERAGE TRUE RANGE

"Average True Range (ATR)

Average True Range or ATR is a measurement of volatility. It measures the average of true price ranges over time. The True Range is the greatest distance between today's high to today's low, yesterday's close to today's high, or yesterday's close to today's low. The Average True Range is a moving average of the True Ranges.

High ATR values often occur at market bottoms following a "panic" sell-off. Low Average True Range values are often found during extended sideways movement, like as those found at market tops or after consolidation periods. True Range is used in Welles Wilder's Directional Movement indicator as well as Donald Mart's Master Trading Formula and is a common volatility ratio. The ATR can be used in a channel breakout method of trading by adding or subtracting from the previous bar's close or the current bar's open."

FROM: http://www.prophet.net/learn/taglossary.jsp?index=A
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.

gmoney
rank: <50 posts
rank: <50 posts
Posts: 11
Joined: Fri May 26, 2006 12:56 pm
Reputation: 0
Location: Scottsdale, AZ
Gender: Male

Postby gmoney » Tue Dec 11, 2007 11:09 pm

Casinoman, did you continue developing a system using the midpoint entry and exits you described earlier in this topic? I'm interested in these type of systems that are very simple and take little time to manage (and don't need me to be up in the middle of the night either!).

Please add www.kreslik.com to your ad blocker white list.
Thank you for your support.

Ali Son
rank: 150+ posts
rank: 150+ posts
Posts: 179
Joined: Sun May 28, 2006 1:30 am
Reputation: 0
Location: Boston, MA
Gender: None specified

Postby Ali Son » Thu Dec 20, 2007 11:36 pm

Good explication of ATR, Avery.

Trick to using it successfully though is knowing whether you are "at [...] tops or after consolidation periods." That is a question, indeed.

Ali Son
rank: 150+ posts
rank: 150+ posts
Posts: 179
Joined: Sun May 28, 2006 1:30 am
Reputation: 0
Location: Boston, MA
Gender: None specified

Postby Ali Son » Thu Dec 20, 2007 11:41 pm

Gmoney, did you used to post in the TS forums; are you that Gmoney?


gmoney wrote:Casinoman, did you continue developing a system using the midpoint entry and exits you described earlier in this topic? I'm interested in these type of systems that are very simple and take little time to manage (and don't need me to be up in the middle of the night either!).

gmoney
rank: <50 posts
rank: <50 posts
Posts: 11
Joined: Fri May 26, 2006 12:56 pm
Reputation: 0
Location: Scottsdale, AZ
Gender: Male

Postby gmoney » Thu Dec 20, 2007 11:48 pm

Yes it is me. The same gmoney.

Ali Son
rank: 150+ posts
rank: 150+ posts
Posts: 179
Joined: Sun May 28, 2006 1:30 am
Reputation: 0
Location: Boston, MA
Gender: None specified

Postby Ali Son » Fri Dec 21, 2007 1:07 am

Good to see you, and to know that there are quite a few of us who have followed TRO over here. (I notice you don't post anymore at TS. I thought perhaps it was because you do fully automated system trading and maybe no longer felt no need to do so and/or tired out as some do.)

gmoney wrote:Yes it is me. The same gmoney.

gmoney
rank: <50 posts
rank: <50 posts
Posts: 11
Joined: Fri May 26, 2006 12:56 pm
Reputation: 0
Location: Scottsdale, AZ
Gender: Male

Postby gmoney » Fri Dec 21, 2007 2:13 am

I don't have the time to be active in the forums the way I used to be. I stopped trading automated systems almost 2 years ago to focus solely on discretionary trading. Had success early but not in a while (working full time and daytrading discretionary doesn't mix well for me). So, I'm back to creating automated strategies again.....that's why this midpoint entry system got my interest! I coded the entry easy enough but haven't taken on the coding for determining the median move from midpoint cross to close.

Please add www.kreslik.com to your ad blocker white list.
Thank you for your support.


Return to “strategy trading & money management”