Thursday, May 09, 2019 2:46:12 PM
You know how I feel about paying someone for trading suggestions, not in favor of it at all. But I always am interested in what they are doing because you never know when something new might come up and spark a new thought.
Well here is the latest. I got a flyer in the mail today from a Wendy Kirkland who promises a 6 figure trading income. Then proceeds to show how a “hypothetical” trading account would have gained $91K in 12 months with only a $10K account. No gains are reinvested, party with the profit. I actually like that idea. She invests $1,000 in options for each trade. This equates to 6-10 options per trade usually and a profit average of about $1,000. Would have been a good sales point to have actually shown results from at least 6 months of actual trading.
Does she have your attention? Well you should because she has discovered what she believes is the “HOLY GRAIL” in option trading with an 83% success. No prior experience needed. She claims this is a breakthrough NEW system.
Her trades were all options in the 3 major indexes and the 10 SPDR sectors. She had several graphs to show her system but of course the TA names were left off to protect her “Holy Grail”. I fully support her choice of trading etf’s. I believe that stocks are just too volatile. I tried trading the SPDR sectors last year with some success, but too much work and too many trades needed.
An example of one of her trades that made $1,000 was 6 options of XLP Aug 52 call on 6/28/2016 for 1.88 and exit on 7/5 for 3.75 for a profit of $1104.
So what were the 2 TA’s listed that she used. It didn’t take long to find out what the “Holy Grail” was. PPO(12,26,9) (which is just MACD) and ADX 14. Wow, now isn’t that rich?
However, after having just made a lot of fun about Wendy’s Holy Grail, there is actually a lot of merit to what she is doing. A high ADX depicts a strong trend. Of all the graphs that she showed, an ADX of 20 was about the lowest I saw. I tried trading with ADX many years ago and I remember that I used 20 as my gauge of a strong trend. Then she uses PPO to pin point a tradable pull back.
About half of the trades were from a daily chart and the other half a 60min.
She did have one example of a short trade, but I would be leery of them. Even on the one chart she showed of a short trade there a setup 2 weeks earlier that was just as good and a failure.
With my interest in trading from a daily chart renewed by my RSI trading, this is something I think I might investigate a bit more. SC would be easy to use to watch for an ADX >20 and MACD-h < 0.
As I was preparing to publish this post I suddenly remembered that years ago I signed up for a nightly service that gave trades on stocks based on this system. Over a period of 6 months I actually made a lot of money. But when the market turned down, it started losing fast. So once again, paying attention to the underlying longer term trend is key to any system.
Well here is the latest. I got a flyer in the mail today from a Wendy Kirkland who promises a 6 figure trading income. Then proceeds to show how a “hypothetical” trading account would have gained $91K in 12 months with only a $10K account. No gains are reinvested, party with the profit. I actually like that idea. She invests $1,000 in options for each trade. This equates to 6-10 options per trade usually and a profit average of about $1,000. Would have been a good sales point to have actually shown results from at least 6 months of actual trading.
Does she have your attention? Well you should because she has discovered what she believes is the “HOLY GRAIL” in option trading with an 83% success. No prior experience needed. She claims this is a breakthrough NEW system.
Her trades were all options in the 3 major indexes and the 10 SPDR sectors. She had several graphs to show her system but of course the TA names were left off to protect her “Holy Grail”. I fully support her choice of trading etf’s. I believe that stocks are just too volatile. I tried trading the SPDR sectors last year with some success, but too much work and too many trades needed.
An example of one of her trades that made $1,000 was 6 options of XLP Aug 52 call on 6/28/2016 for 1.88 and exit on 7/5 for 3.75 for a profit of $1104.
So what were the 2 TA’s listed that she used. It didn’t take long to find out what the “Holy Grail” was. PPO(12,26,9) (which is just MACD) and ADX 14. Wow, now isn’t that rich?
However, after having just made a lot of fun about Wendy’s Holy Grail, there is actually a lot of merit to what she is doing. A high ADX depicts a strong trend. Of all the graphs that she showed, an ADX of 20 was about the lowest I saw. I tried trading with ADX many years ago and I remember that I used 20 as my gauge of a strong trend. Then she uses PPO to pin point a tradable pull back.
About half of the trades were from a daily chart and the other half a 60min.
She did have one example of a short trade, but I would be leery of them. Even on the one chart she showed of a short trade there a setup 2 weeks earlier that was just as good and a failure.
With my interest in trading from a daily chart renewed by my RSI trading, this is something I think I might investigate a bit more. SC would be easy to use to watch for an ADX >20 and MACD-h < 0.
As I was preparing to publish this post I suddenly remembered that years ago I signed up for a nightly service that gave trades on stocks based on this system. Over a period of 6 months I actually made a lot of money. But when the market turned down, it started losing fast. So once again, paying attention to the underlying longer term trend is key to any system.
Trade the Charts and not the Heart - Expect the trend to
continue until it doesn't - Realtime is the real deal
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