Is the built-in Donchian system too good to be true?

Discussions about the testing and simulation of mechanical trading systems using historical data and other methods. Trading Blox Customers should post Trading Blox specific questions in the Customer Support forum.
Roundtable Fellow
Roundtable Fellow
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Location: Austin

Post by borderline » Thu Jul 16, 2009 11:16 pm

Last I checked the ways to make money trading are:

1. Not to lose principal.
2. Buy low, sell high.
3. Short high, cover lower.
4. Control today, pay tomorrow (carry trade)
5. Steal it... like Goldman does by doing the electronic version of front-running customer orders (aka ultra-high frequency trading).

I think #5 qualifies as a 'lesser known strategy' but I'd say front-running isn't trading. It's stealing. I also don't consider arbitrage (the real thing) to be trading - I consider it to be, well, arbitrage. At any rate I'm not convinced there are many new tricks to learn, just old tricks to relearn :)
Someone will bring up Rentech but maybe they are just implementing old tricks better than everyone else?


Roundtable Knight
Roundtable Knight
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Post by sluggo » Fri Jul 17, 2009 12:20 am

How to be a very successful trader

1. Say some words into the telephone
2. Say the right words
3. Say them at the right time
4. Repeat

You can replace "telephone" with other means of communication if you wish.

Roundtable Knight
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Location: Walldorf, Germany

Post by Asamat » Fri Jul 17, 2009 1:45 pm

Sluggo, let me summarize:
let the brain fire the right neurons at the right time.

Roundtable Knight
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Post by LeapFrog » Fri Jul 17, 2009 1:49 pm

That is way too cerebral of you Asamat. I think what he meant was...

How to be a successful trader:

Make money.

Posts: 4
Joined: Wed Dec 31, 1969 7:00 pm

Post by fourfman » Thu Aug 13, 2009 5:57 pm

I have been a TFer for going on 25 years now, you know back in the days when we updated charts and moving averages by hand. I have been seeing articles on the death of trend following happen like clockwork right before I make HUGE profits. It just keeps coming around again and again. Like the cover of Barron's with a bull in a steam roller crushing a bear in 1987.
I'll keep following trends and just keep on doing the right thing.
Trendfollowing is in a big part discipline, and patience after the hard work of testing. Thus Test Trust and Trade.
The harder I work the luckier I get.
Don't listen to the media or brokers or system sellers. If they could do what I do you wouldn't hear a peep from them.
The reason most wanna be trend followers claim it doesn't work is they fall off the wagon!
Test Trust and Trade. or else give your money to someone who can, and do what you do best! Wasn't it Livermore who asked a man at a party after being asked for a hot tip how do I make a quick buck in brain surgery?
Work hard for good luck and TB is the best tool that has ever been on the market for us rocket science challenged folks.

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