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Jaxon2010

08/29/15 10:15 AM

#150956 RE: Scripo #150955

Thank you sir. Does it work on 60min or less?? I'll try it myself. Just curious.

Ty

USDollar

08/31/15 9:18 AM

#151077 RE: Scripo #150955

nope, stochastics conclusion is inaccurate

1. you didn't post the window of (back)test. This by itself voids any and all results, let alone 99.9% accuracy.
If you tested that thing for 2015, which is a pretty long window (not acceptable though), you get good results, but even so nowhere near 99.9%

2. why in the world would you kill the D with a 1???
Why in the world would you cripple the stochastics? What was to gain? Honestly now.

3. using your idea and going on margin would decimate your account or potentially blow it.
Take for instance the last event. FRYday Aug 21 your sto was at/under your oversold yet the market plunged in free fall 15 or more SPY points the very next trading day. There are other similar cases but less dramatic, not to mention the fake signals to get out of longs while the market kept rising insistently on few occasions.
NOT a 99.9% accurate tool by itself.

Last but not least:

4. the 5 configuration is rather one of the ...the STANDARD norm!
The other being 14.
This fact by itself coupled with the fact that markets are efficient, would entirely dismiss your claim of 99.9% without even trying to test it.

Final note:
Yes stochastics is a good tool, but relying on it like that, thinking it's infallible will regrettably take you down.
If you use it AS PART OF A GROUP/arsenal of tools, AND believe is buggy, then yes, you will stand a chance.

Take my well meant AND tested advice and give it a hard long thought, for your own good.

I myself use stochastics nearly on all my charts if not all (not sure, too many), but use my own settings. I do use the standard too. Why do I since it's buggy? I don't use it for trading, but I do have it because I know it's one of the standard settings used by many (you included) and want to know of course what the masses are seeing.

While I won't give away my time I can tell you that a stochastics no matter how nice setting, will never get you a great entry/exit by itself. You need to help it with a complementary "thing/s".
Assuming you'd figure this out one day, then the next level up in trading is not easier but harder, yes u'f believable but true. I have never came to a point where I can say "OK pal now it's done, just sit back now and have a easier trading, now just watch the xyz indicators and all easy".
After so many years I start to believe it doesn't exist such a point. I think the closest to it is to be content with some indicators, some settings, then NEVER try to advance and use them when and while work and stay out on the periods they won't work.

One more thing, I sense you (others too) don't use mid stochastics at all. That is a mistake as well. I confess I use it barely myself, which says something now doesn't it, but I do use it which also says something.
Here's one use, just one of them: - when stochastics "REFUSE" to cross the middle to go into oversold/overbought, it shows strength of price. You better don't commit something foolish like going with a trade against it.