Quote:
Originally Posted by dpaterso
Hi.
Now please don't think I'm being nasty by posting this message - I am not - I just want to clarify the reason for starting this thread in the first place.
Also - before posting - please read the ENTIRE thread first - otherwise you'll be missing the point of the thread.
Like I said - please don't think I'm being 'offish' here - it is really not my intention.
That is the whole point of the thread. We know (I know) that this indicator probably gets you into the trade later than any of the other indicators - no question about that - and - yes - it can (should) be used with another indicator (as a matter of fact J. Welles Wilder HIMSELF - who formulated this indicator - suggests using it with another one of his indicators in his book 'New Concepts In Technical Trading Systems').
Having said that - with the two 'forex only' accounts that I have at my 'other' or 'forex only' brokers - I just wanted to see what happens when you use this indicator on its own - because historically - take any chart - especially (but not necessarily limited to) the daily and weekly and monthly charts - it would appear that plenty of PIP's could be made using ONLY this indicator. The point is this: it is 'low' maintenance and it is exact. In other words - it leaves nothing to the 'imagination' or your own 'judgement' (which in my experience - until you have developed a 'feel' for things - normally results in a loss) - it tells you EXACTLY when to get in and EXACTLY when to get out i.e. stop and reverse.
Again - we are looking for small sustainted profits over the longer term - with low maintenance and I believe that it is possible with this indicator. Put it this way - after all the losses I've made over the past couple of months (real money) - my mindset has changed. I'd rather be 'sure' of making - let's say for example 10 PIP's - over a period with little or no risk - than trying to squeeze 100 PIP's out of the same move over the same period - and run the risk of ending up losing 30 PIP's for example - get the picture?
Anyway - this morning (my now daily 'ritual') - I moved my stop losses (or rather stop and reverse orders) - and already two or three of them have one dot to go before profits start getting locked in and a few more are close - and found two new positions to open - and four new ones on their way in the next couple of days.
I know I said I would not be updating my results on a daily basis here but just for the record the one account now has 31 positions / 31 pairs open and the profit as I type this message is $4232.13.
If the truth be told - so far - I'm making (well almost) the same amount of money using this method - than I am on stocks - with a hell of a lot less stress, anxiety, and time expense. I'll tell you this - if this works out by the end of the month - then there would be no reason to continue using those 'sniper' or 'expert' or 'optimised' systems on stocks either. If this method (indicator) proves itself - you could make the same amount of money by using more capital but making less PIP's. That's good enough for me.
While I realise that all of the above may be taking the 'fun' out of trading - don't forget why you are trading. You're trading to make money and those figures that move up and down are real $$$ not just figures on a computer screen somewhere in the electronic yonder. When I first decided to do this for a living I got caught up and 'captivated' with the idea of trading and the 'novelty' of the business - and - while I now REALLY do still enjoy it - and love learning new things about how the markets work and about economics and world events and how each country is affected by such events - it has been a very expensive 'joy ride'. Now - first and foremost - I'm the breadwinner - and making money must be the first priority.
Anyway - it's early days yet - so I might be eating my words - let's wait and see.
Edit:
Just for interest sake - I have attached a daily chart of the Dow Jones Industrial Average Index. I have overlayed PSAR on this chart in addition to the indicators necessary for the 'system' that I normally use to trade this Index. Take a good look at PSAR and the other indicators. I'll tell you that most of the nice long 'trends' I missed because there were no valid signals from my 'system' but there sure are a hell of a lot of entry and exits and profits indicated by PSAR. Who knows - maybe it's time for an IMMEDIATE change!!!
Regards,
Dale.
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Dale i appreciate you taking the time and posting here. Yes i understand what you are doing, this is an experiment and you want to follow through with it to see what happens in say a month instead of just guessing or jumping around and changing everytime a trade goes sour. This way you can actually judge the performance of an indicator and a trading strategy. I was just happy that you were making profit after some rough periods in forex thats all.
If i may offer my humble opinion. I am not a very smart man. Probably one of the dumber traders (or wannabee traders as i am not live yet) around. However i honestly think i will be successfull. My rational is wisdom over knowledge. THere is so much information around right now most people are in overload. The people who are successfull are the ones that know what to concentrate and apply to their personal trading. They also know when to trade and when to stay out. They apply simple smart money management. It has been said before that you can make money with a SMA if you only applied proper money management and wisdom.
Anyways those are my thoughts, interested in hearing how your experiment progesses.