Hi,
No problem. Enjoy. It is indeed a very good. I’m not sure which came first i.e. the Invesopdia articles (all the trading systems in the book are pulished on Investopedia) or the book (although it’s an Invetopedia e-book anyway). I personally (as you may have noted on my forums if that’s where you downloaded the book from) only the use RSI Rollercoaster and then ony on equities and commodities and it has it’s shortcomings and I’ve made a modicifation or two to ENSURE that a profitable trade doesn’t eventually, after a few days, even weeks, simply end up breaking even (that’s MORE frustrating that taking a loss for me)!!! LOL!!! The other one that I believe is quite good that ‘Memory of Price’ system and I’ll probably backtest it (paper-trade it) at some point when I done with detailing the systems already presented on those forums. I must say that I do very much like the introduction to this book though i.e. some very good pointers and information. It looks like they (Lien / Schlossberg) conentrate a lot on and use risk / money management to their advantage. As a fine example the only reason that the RSI Rollercoaster IS profitable is because of the risk / money management rules that they apply given that, as they quite correctly say, it’s a low probability trading system, but I’ve spent a long time working around that i.e. nothing ‘spectacular’ excepting that I don’t let that second half of the trade, after moving my stop to breakeven, just run in the HOPE that RSI will eventually reach it’s opposite limit i.e. 30 or 70 depending on whether you’re short or long because, inevitably, especially if your trade is against a strong trend, it never gets there and the trade ends up breaking even which, as I note, drives me insane, so I simply move my stop to the low or high that has caused RSI to cross over 50 and leave it there so that if RSI turns up or down again over 50 before reaching it’s opposite limit I’ve at least made SOMETHING and, of course, at best case, I don’t get stopped out until it reaches it’s opposite limit in which case, obviously, and as per the system, I’d stop and reverse. It took me years to realise that almost ALL trades show a profit at some point but it’s the not exiting in time or not protecing those profits that makes the difference between success and failure. OK: with some systems (such as most of thost presented on my forums) it’s not possible to lock in or protect profits without interfering with the actual operation of the system it self and that of course undermines the system (and proftiably of the system) totally (a fine example being my ‘main’ trading sytem i.e. Wilder’s Swing Index System).
But yes: a lot can le learned from this particuar e-book. The other one over there (which I prefer really) is the ‘Street Smarts’ one (Connors / Raschke). Some excellent trading system there too and they’re more my ‘style’ given that most of them either use channels in one form or another or make use of Wilder’s indicators and me, of course, being a ‘Wilder devotee’, am therefore biased I guess. Of course then for me: ‘top of the pops’ is Wilder’s book but it’s not everybody’s ‘cup of tea’ although I’ll say this: if anybody uses any of Wilder’s indicators BEFORE reading that book you’re already compromising yourself i.e every single website I’ve ever come across only gives you a sort of ‘brief synopsis’ (at best) on the use of, say, RSI, ADX, Parabolic SAR, etc. and in some cases the information is misleading and in some other cases the information is just ‘plain wrong’. As a matter of fact, and as a very fine example, would you belive that the actual calculation of ADX as supplied standard with MetaTrader is, and always has been, wrong i.e. the major omission is the fact that ADX is not smoothed as per Wilder’s smoothing method and believe me this either whipsaws you (depending on which trading system you’re using but includes ADX) or, if using ADX to indicate the presence or absence of a trend and the strenght thereof, will get you ‘in’ and ‘out’ too early. I’ve had Wilders book (it was my first) for at least about five years now and even now, sometimes, when I refer to it for something now and then, I find something else that I’ve ‘missed’ for some reason because it’s not an ‘easy read’ i.e. every sentence written ‘counts’ and there’s very little ‘fluff’ of any kind!!! LOL!!!
Anyway: good trading (I never say ‘good luck’ because if you’re TRADING then ‘luck’ should play no part)!!! LOL!!!
Regards,
Dale.
