i like that macd 5,15 daily .i've never noticed how good it pinpoints entrys and exits.i've been looking for a good daily indicator. i use weekly charts ,but need a good daily indicator to fine toon entry exits. will do more homework. thanks for posting your system !! ken d.
I came up with "version 1" of this chart system around May of this year. And, I think "version 8" probably surfaced around 2 months ago. The various versions of the "Poor Man's 2x" basically involved different ways to trade this same chart system. I've only recently been FULLY trading the PM2x(v.8) within the last TWO WEEKS. I went through a period of observation with "version 8" ... and was hesitant to actually trade it. Prior versions had flaws which is why I kept trying to find new ways to trade the system. By displaying it on the "old CS QQQQ board" (before we all left and came over to iHub) ... and posting it on this board (Woodfish's "CS Group" board), quite a few suggestions poured in from other boad members which were very helpful developing and looking at this chart system in new ways. One suggestion that was particularly helpful was by bud (iHub: husk, CS: budw) who suggested the use of StockChart.com's Beta charts to add a moving average to the MACD histogram itself. Comments from others about the apparent reliability of PM2x(v.8) also helped as I was evaluating this chart system on my own.
When I first started trading PM2x(v.8), several times I found myself trading AGAINST the chart system ... opposite of what the PM2x(v.8) was saying I should be doing. A short history of experiences began to develop where: 1) I was wrong, and 2) the PM2x(v.8) later proved to be right. Also, a few more experienced investors here (ex: Paul; ihub: Vaquero, CS: Pokersam) were already giving it their stamp of approval. Finally, I just started to trade the PM2x(v.8) ... and trust its signals ... and FINALLY STARTED MAKING MONEY.
The PM2x(v.8) is an ongoing experiement ... and I will not be surprised to see it fail ... at which point modifications will need to be made. Backtests of older trading versions of PM2x by QQQQ Trader (CS: QQQQtrader1) were not promising. As FreeMarkets (CS: tanders6) pointed out, this chart system failed big time during the last 6 months of 2003. But then, so did the NASI and probably quite a few other indicator systems during that period ... which was a very bullish period. Am trying to keep one eye open toward when this may happen again ... and the PM2x(v.8) will fail. One of the first trading lessons I learned in my first year of trading was that a trading strategy can fail when confronted with a new set of conditions. If anybody here recalls IOMG (the original Iomega symbol), that was my first year of trading when I learned this lesson.
For now, however, it seems to be working. And, I am slowing now scaling in larger amounts of money in trading it ... as my confidence in it is growing ... again watching out for that unknown unique set of conditions that will cause it to fail (ex. 2003). With luck, whatever the conditions that are making it work now ... will continue.
Ken ;-)
===================== Posted by: kedew In reply to: kenwong who wrote msg# 1675 Date:8/26/2005 8:27:07 AM Post #of 1724
kenwong, just wanted to say thats a nice chart setup !!! how long have you used it ,and have you gottened good results ? thanks ken d.
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