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The Electronic Local method

  #52 (permalink)

Trading Experience: Intermediate
Platform: TOS, NT
Favorite Futures: ES
fiki's Avatar
Posts: 212 since Jun 2009
Thanks: 61 given, 433 received

I have to agree with Prtester and CP.

Ive read the entire blog twice including the comments. The was nothing there but the a simple moving average setup and like Prtester wrote, on some days it rocks (trendish days) and on other days it sucks. Instead of showing the days that suck he post the setups in a different market where it worked.

He talks alot about orderflow. But what is orderflow? The skill to "forcast" based on how orders enter the market. So what tools does he use?

33/99 MA = Pure price action
Mom dots = pure price action
CCI = Pure price action
Rangebars = Pure price action
Delta = bid/ask
Cum delta = bid/ask

Where is the volume and the time component?

Lets start with combining delta with rangebars, what does it tell u? If price moves up and positive delta is increasing on the move up, is that bullish or breash? EL says bullish but i dont agree all the time. It shows it takes more and more effort to move price a certain amount of ticks (rangebar). More effort but less effect means more limit sellers entering the market. Thats why many times, his "perfect setups" are good fades or at least u can expect a nice pullback before they take off.

Second "orderflow" tool is a 9 moving average of cum delta. Imo that is not reading orderflow. That is a derivat of orderflow. U manipulate the market generated data to get your signals.

I backtested this "system" a lot and even traded it with real money. And it does not have a high winrate at all. And it constantly takes 1-2p heat before it takes of, IF it takes of (the reason is the exhaustion u get when the entry is triggered). Backtesting it I got the same result just using rangebars, 33 sma and the slope of the sma for direction...

Im sure his goal has been to generate enough interest in his blog to get customers for his expensive education. And he did a great job there. He started blogging just in october 2009 and then started writing about his blog on some forums i follow.

He offers a 90 day education and mentoring service for 5000 usd. That kind of commitment takes a lot of time away from his trading. If he is a pro trader that almost never misses like he claims, why not just put on a 100 lot and make real money during this time? There are just to many things not adding up for me to beleive he even is profitable.

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