actio-et-reactio: for every action there is a reaction. In the background is a sketch by Leonardo da Vinci-teeter-totter- a symbol of how tenuous is the balance between extremes

actio-et-reactio

Balance is but a brief transition between extremes.

My Pages

Trading Friends

News & Reference

Credits

Content: amg
Basis: glish & bluerobot
Powered by blogger
Web Host: lunarpages
Powered by Blogger

Search

Archives


Saturday, March 26, 2005

Chick Goslin, SMR and IFT

SMR and Trading Day by Day, Chick Goslin's Intelligent Futures Trading (IFT) methods

When I first heard his name, I couldn't help but think of a family of swans, the chicks trialing in the wake. The cuddly image was shattered by the picture of him at his site: a burly smiling ex-Marine crouched down next to his shaggy dog friend. He has acquired a number of faithful adherents on the web, particularly at the trade2win boards, who as of this writing have over 22 pages of reviewing, demystifying, and at this point, documenting their use of the method.

Goslin's IFT might sound complicated, but striped to its essentials, it is a straightforward method with a very nice number-weighting of the long, medium, and short term signals the system generates. I haven't backtested the results, but each piece of the system is simple and will be recognized by most technicians and market hounds.

The 3-point System is outlined at SMR in this Word file. NOTE: it is labeled as a .txt file, but it is best viewed as a Word file as Notepad will expose the internal code as gobbledegook.

It may sound mysterious as it is sprinkled with his own nomenclature of the elements. Can you fault him? We all do that with our methods! However, enough of the method can be gleaned to get going. My intent is to present a TA tinker with enough to create the template on their own and find out if their interest is peaked enough to buy the book and explore in depth the methods and nuances Chick has developed. The book reviews indicate there is value.

The basic indicators:

An imaginative leap is taken for position trading. Chick assigns each of the three main components a value of +1, 0, or -1 depending if the indicator is moving up, sideways, or down as follows:

One then counts only the positive contributions when the trend is up, or only the negative values when down. +/- 2 is considered bullish or bearish, and values between +/- 1.5 are considered neutral (ie, no position).

Finally, to eliminate lag and anticipate a change in the Position Indicator, the past values of both the 49 sma and the 16 ma on the 3-10 MACD are reviewed to see if a lower or higher value is being "dropped" off by the ma calculation.

All things considered, a very sensible approach.

Labels: , ,

posted by Ana Maria @ 12:46 PM :: permalink




moon phases
 

At last, over the rim
of the waiting earth
the moon lifted with
slow majesty
till it swung clear of the horizon and rode off,
free of moorings
- Kenneth Grahame,
The Wind in the Willows

recent comments