[dpaterso]

Hi,

I know when I first created those spreadsheets I had a seperate column for each of those values so that I could visually check that my MAX() function in Excel was INDEED picking up the correct values and I remember that they were not always the same. The only way to check really is to take a couple of days and do the calcualtions manually on paper and see what the outcome is (I'd better check this myself as well but then again remember that if you 'plug' HIS figures into mine or yours spreadsheets we got the right figures as per his work sheet, except for the 'errata' of course, so we must be right but it needs to be checked anyway).

The 'Volatility Swing Combo' (I like that)!!! I don't think it's possible using HIS constants i.e. you might as well then just be trading the Volatility System on its own because the Swing Index System requires that you stop and reverse a lot sooner i.e. if you use them together with HIS constants the Swing Index orders will NEVER get hit. The 'Volatility Swing Combo' only works if you make the constant something like 1 i.e. then the ARC is exactly equal to 1 x ATR and this seems to keep you out of 'false' stop and reverses quite nicely (this is what I'm doint at the moment and it's cut down my 'false' stop and reverses almost by 100% although sometimes is is keeping me out of good trades as well but so be it). I'm using the 'standard' Volatility System on the 1 hour at the moment (testing with small lots of Silver) and this seems to be working well. This system definitely CAN result in HUGE drawdowns but the profits seem to outweigh the losses by far IN THE LONG RUN!!! Margin (once again) is the key here. Either LOADS of margin OR NO 200:1 / 400:1 leverage i.e. maybe 50:1 leverage will do the trick and keep you from getting 'nailed to the wall'!!!

My 'idea':

At both my brokers (Delta and GCI) a 'stop order' is an order that you place if you're 'within' your price range. In other words: if the price of Silver is 19.95 and I want to buy or go long at 20.00 I can place a stop order buy at 20.00 i.e. the price of my order is ABOVE the current price and I want to go long with the order. Conversely if the price of Silver is 19.50 and I want to go short at 19.40 then I can place a stop order to go short at 19.40 i.e. the price of my order is BELOW the current price. Those are 'stop orders'. A 'limit order' is used if the price at which I want to enter is already 'out of bounds' as it were. In other words: let's say that I wanted to go long at 20.00 as in the previous example BUT the price is ALREADY PAST where I wanted to enter (let's say it's now at 21.00) then I would place a 'limit order buy' at 20.00. In other words the price in this example would have to retrace from 21.00 to 20.00 in order for my order to be executed. See the difference? If not tell me and I'll try to explain it another way. I suppose another way of putting it is like this: 'I want my order to get executed WHEN the price gets to X'. That would be a 'stop order' as opposed to: 'I want my order to get executed IF the price gets BACK to X'. That would be a 'limit order'. Something like that anyway!!!

Anyway: I'm currently trying this 'thing' on a GCI demo that I registered for the purpose, as well as on Silver at Delta (trading the most 'minuscule' of lots for testing purposes), and so far so good. I must admit that I'm kind of hoping that IT DOES NOT WORK because if it does then you can 'scrap' just about every system and indicator (and everything else) that you've ever seen or heard about in trading and it would then mean that I have certainly spent a 'sh*tpile' of time creating systems and 'wracking my brain' for nothing!!! If it DOES work (well and consistently) do you know how easy it would be to create an EA for this??? 'Plonk' a 'sh*tpile' of capital into an account, turn the EA on, go away, and take profits whenever you feel like!!! Bliss (actually not i.e. what would I do all day)!!! Let's see what happens!!! (Maybe 'the man' will buy it from ME for $1 000 000 and then I'll fly all you guys and dolls out here for a 'party of note')!!!