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Jesse Livermore ...

Posted: Thu Apr 17, 2003 9:06 pm
by Robert Nio
Hi There,

First I want to thank you for setting up this thread. :D

I have implemented and further refined the Jesse Livermore trading method with astounding results in regards to identifying trends when they start.

The biggest challenge was to find an environment where to implement that method in. Many of the macro-language environments (e.g. MetaStock’s FormulaLanguage / TradeStation’s EasyLanguage) had all shortcomings in regards to DIRECT addressing of the “price-bars” in a data-series. You just can’t say “give me the close of the 14th bar”, with the 1st bar being the first of the data-series. All trading system environments seam to just support “relative” addressing of price-bars (e.g. give me the close of 10 bars ago).

I ended up writing the system in C++ using MetatLib to interface to my price-data in MetaStock-Format. I still use MetaStock to plot the entry / exit signals just based on the price-performance of the underlying. However MS does not support real Money-Management etc.

I use the Turtle Money Management rules to complement my approach. IMO, I think I now have the best of both worlds: a great signal generator and a very solid / robust money management framework.

I am curious to hear what other folks use to indicate a starting or ending trend? What signals do you use?

Happy Trading

Robert

Jesse

Posted: Fri Apr 18, 2003 2:18 pm
by Dave S.
This is interesting - did you use the Jesse Livermore system outlined in the little thin book entitled How to Trade in Stocks: The Livermore Formula for Combining Time Element and Price?

Dave

Posted: Fri Apr 18, 2003 3:35 pm
by Robert Nio
deleted on 9-11-2010

Re: Jesse Livermore & Omega ProSuite

Posted: Tue Apr 22, 2003 2:12 pm
by SwingTrader
Hi Robert,
Robert Nio wrote: The biggest challenge was to find an environment where to implement that method in. Many of the macro-language environments (e.g. MetaStock’s FormulaLanguage / TradeStation’s EasyLanguage) had all shortcomings in regards to DIRECT addressing of the “price-bars” in a data-series. You just can’t say “give me the close of the 14th bar”, with the 1st bar being the first of the data-series. All trading system environments seam to just support “relative” addressing of price-bars (e.g. give me the close of 10 bars ago).

Maybe I'm wrong, but I thought you can say exactly this. Quoting from EasyLanguage Dictionary:

BarNumber
Provides a bar's number relative to the start of the chart

Something like this:
Close[BarNumber[14]].

AFAIR, Wealth-Lab Developer's WealthScript also allows this kind of operation.

Posted: Tue Apr 22, 2003 3:31 pm
by Robert Nio
Nice try .... read my posts and the TradeStation-Folks responses @ the TradeStationWorld-Forum.

On paper it works great ... but when you get to the nifty details ... it does not give you the results you expect.

Thanks for the reply though.

Robert

Posted: Mon Jul 05, 2004 9:31 pm
by JamesK
Robert Nio wrote:I did some research and found a copy of the original book (Livermore, Jesse L. How to Trade in Stocks: The Livermore Formula for Combining Time Element and Price. New York: Duell, Sloan & Pearce, 1940)
Robert
Robert, do you happen to know what (or if) there are any significant differences b/w the 1940 edition and the one available on Amazon (at the link below) by Traders Press
I have read the Traders Press version, that was compiled by Richard Smitten titled:
How to Trade in Stocks: The Livermore Formula for Combining Time Element and Price by Jesse L. Livermore
http://www.amazon.com/gp/reader/0934380 ... ingblox-20
--James

The Book ...

Posted: Mon Jul 05, 2004 11:19 pm
by Robert Nio
Hi James,

Richard did not figure out the system and thus could not make sense out of the "market key". To avoid to much confusion and with no good answers on hand, he decided to publish the book without the market key ...

Many complained and he re-published a newer version a little later:

http://images.amazon.com/images/P/09343 ... ZZZZZZ.jpg

FYI

Robert

Posted: Tue Jul 06, 2004 12:01 am
by JamesK
Robert,
Thanks for the info, do you know whether the Market Key feature is important enough to justify spending an additional $80+ for the re-print copy of the original 1940 edition?
I mean is this the "key" to the whole strategy? Also, is the Traders Press edition with the Market Key the same as the 1940 edition or are there still parts/chapters missing, I seem to get more questions then answers the more I look...

Posted: Tue Jul 06, 2004 12:18 am
by Robert Nio
Hi James,

the latest edition from Richard has the market key and all other pages found in the original version.

It has even a nice (updated) color sample section, the same as in the original version (much better to read through).

So all you need to crack the code is Richards latest version.

Robert

Posted: Tue Jul 06, 2004 1:46 am
by JamesK
Robert Nio wrote:the latest edition from Richard has the market key and all other pages found in the original version.
It has even a nice (updated) color sample section, the same as in the original version (much better to read through).

So all you need to crack the code is Richards latest version.
Robert
Thanks Robert for clearing this up for me, I have just ordered this copy from Amazon.
To save trouble and possible confusion for anyone else looking for this book (the correct version), below is the Amazon link and relevant info:
- Hardcover: 239 pages
- Publisher: Traders Press; (November 14, 2001)
- ISBN: 0934380759
http://www.amazon.com/exec/obidos/tg/de ... ingblox-20

NOT the ISBN: 0934380694
--James

Posted: Tue Jul 06, 2004 3:34 pm
by Robert Nio
deleted on 9-11-2010

Any thoughts one - One Way Formula?

Posted: Mon Jan 09, 2006 3:38 pm
by z93007
It was interesting to read about J.L's idea being implemented and showing promising results. I was searching for such 'classic' systems, and came across William Dunnigan's "One-Way Formula for Trading in Stocks and Commodities". Various places I read that this formula works out to be a winner in any testing. However, I haven't seen it being implemented so easily. (Thread: viewtopic.php?t=205&highlight=)

Has anyone done any work on this? Any comparison with J.L's method?

Posted: Wed Jan 11, 2006 3:30 am
by BARLI
Nice Chat about Jesse Livermore. I love his easy language which he writes in his book How To Trade In Stocks. I got first Edition. I believe its the purest one since no one added anything into there. Its how it looks:

Image

Robert Neo, I haven't gotten into the Market Key explanations of Jesse Livermore, but could you share some of the code your written for Meta Stock?

thanks in advance

Posted: Sun Feb 19, 2006 8:05 pm
by JimR
I was not aware of this book, but will definetly pick up a copy from AMZN, seeing as "Reminiscences" was such a great book. Thanks for providing the updated ISBN # also.

Fyi, there are first edition copies of this book on ebay, one currently has a bid for $999, another has a buy it now price for $2950! Apparently they are rare. Ill stick with the $20 paperback myself. :D

Posted: Mon Apr 24, 2006 1:45 am
by BARLI
Robert, could you attach the backtest results of the JL-Turtle system?