marine2
963 posts
msg #93972
- Ignore marine2 |
6/17/2010 4:07:43 PM
Create or find a filter that you understand how it works and with your backtesting it also proves to be relatively successful (75% wins and ROI = 40% plus) in a positive market environment and go with it. No filter is perfect. There is no such thing as the "Holy Grail" in filters. When people say stock buying and selling should never involve timing they will be better off keeping their money in an income investment environment and let the true traders / players play the market. Risk is always there for any of us trading stocks. The amount of risk is the question any investor needs to address. Good luck.
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wkloss
231 posts
msg #93975
- Ignore wkloss |
6/17/2010 4:29:28 PM
Marine2,
Agreed. I was in an options class yesterday and the instructor made the point that talk about Black Swans made it sound like they were something new. He went on to say market makers always understood risk or they failed quickly.
He is a big believer in risk management which is what you are saying. Spending a small portion of each trade on protective puts is a great idea....unless your average gain is small...even if it is frequent.
The filter you described sounds interesting. Can you suggest where filters like that could be found?
Bill
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marine2
963 posts
msg #93997
- Ignore marine2 |
6/18/2010 2:31:06 AM
WK, thanks for responding. There are many filters that have these results. The people that write up filters for people to try do have some nice ones. Just look at a few backtest them and see for yourself. Always remember its not how complex the filter is making it successful. Simple filters get just as much results as some of the complicated ones. Less is good as they say.
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Cacher
121 posts
msg #94004
- Ignore Cacher |
6/18/2010 8:54:18 AM
Filters .... some of my best were awesome for the day/week/month I wrote them .....but the market is in constant change, and these big win filters work for the conditions of that day and often influenced more by the interaction of news, sentiment, politics, military and so much more.... the market is dynamic and so should be your filters. IMHO.
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