Start Your Own Trading Room

Some of this is getting a bit silly, in that spirit, here is how you start your own trading room.........

You do some very rudimentary technical analysis, the simpler the better, you come up with the levels for the next day after the market closes. You post them on your site in the afternoon, or in this case, Guy's site....here are my levels for 1/12/06 on the ES:

40
35.50-36.50
34.50
29.5-30 30.50
24 25
20.25

also note the 29.50 area has been support the entire overnight session, so if you had posted these #'s on your site earlier you could explain to your minions that you already made your money pre market and were taking the day off....However, watch these extremely boring, easily derived numbers throughout the day, these are not pivot points or fib numbers, or anything from a black box....simple TA, but don't tell anyone that.shhhh!

Now when the market approches these numbers, call a "possible" set up in advance....use the market action at your price to determine if you take the trade or not.

Remember ABF-----Always Be Fading....this assures that you will eventually sell a top or buy a bottom and that looks great in your sales brochure!

If these numbers work well today, then tell people this was a free trial and ask for a check......if not, change your name and come back with different numbers tomorrow!

In all seriousness, watch these numbers, they are derivesd from the easiest chart analysis that anyone can do. They will be very close to any Guru's numbers and are likely to be one of the highs or lows of the day. I think you also need to understand how to go with a trend, but since most rooms seem to be faders, let's play along those lines.

My point is that this is a lot easier then people think in terms of the analysis etc. What is hard is to actually execute your plan. I am not sure anybody can actually teach you that. Perhaps I am wrong.I am not trying to discredit anyone, but....again, some of this is getting silly........let's see what happens.

One of the most important benefits a trading advisory service provides to its subscribers is a consistent and clearly defined trading method.

The first two questions I would need answered are:

1. is the trading method consistent, day in and day out ?

2. how does the trading method handle risk ?

Good post...and nice numbers too....

Second only to your risk comment PT I would add that any room should have a specific setup and entry pattern(s) in advance so all know the stop loss and specific entry point and can take the exact same trade......then comes the concept of having a profit target but that's another story.

So basically anyone can throw out all the numbers they want but they are meaningless unless the room teaches you how to enter or exit off them, control your risk and show some consistency in terms of profits over time. So how long is enough time to determine if the method is valid? This seems to be the subjective area...

Bruce

Agreed. I did kind of mean this a little toungue in cheek though, however, I will post something later, these numbers were pretty good in the AM session. At the moment, it appears there is enough buying coming in to push this higher. Frankly I am a bit skeptical that this market is going to hold these highs based on some internals,, I would expect a selloff this afternoon, however, I do not have a great level to trigger a short from in here....as far as the long side, I would probably not be looking to do anything here until we get a bit more volume coming in here........this is where a smart trading advisor might suggest to bank your early fading profits and shut down for the day......I will see how this plays out though. Posted 1:25 EST

Good points Bruce...

Your talking about repeatability, which does go hand-in-hand with consistency.

Is the entry method clear and objective, or is it vulnerable to real-time interpretation and market feel ?

Another thing to look out for, a warning sign, is a laundry list of rules and exceptions (nuances). This may indicate situational curve fitting, which can and often does lead to inconsistent future performance. In most cases, rules and exceptions are a direct result of curve fitting the method to past data in order to obtain a profitable historic result.

quote:

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Originally posted by pem06081971

Agreed. I did kind of mean this a little toungue in cheek though....

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Perhaps if we take a less intense approach as your original post suggests, we might have some extra time and energy to actually learn something new and valuable...which was the original intent of this forum, to share information (preferably in a respectful and dignified manner)