Flux Capacitor - by Back to the Future | Trading Reviews and Vendors


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Flux Capacitor - by Back to the Future

  #224 (permalink)

Philadelphia, PA
 
Trading Experience: Intermediate
Platform: Ninja, TradeStation, IB
Favorite Futures: Futures, CL, Gold
 
Posts: 2 since Jun 2013
Thanks: 0 given, 8 received

BTF does work ...

Hi Mark,

I guess one of the things that needs correcting is that on the chart you’ve shared, you’re calling every dot a “trade entry”. Never has Michael said these were trade entries – in fact, there’s no evidence really of any strict stop/target backtesting here. You’re just drawing lines dot to dot and expecting an “ATM” machine response. That’s unrealistic in my opinion.

In the classes, Michael teaches that the signals in the direction of the overall trend that occur in time are usually more pronounced, which is exactly what shows up on this chart. Signals with trend – is a concept that is consistent with Wyckoff accumulation and distribution theory, meaning the times that are in the direction of the down trend, are more powerful moves. The times that are opposite trends, produce weaker moves, or consolidation.

If I take the chart you’ve marked up – “trading” signal to signal – and apply just one small set of rules – trading with trend, the system becomes profitable.

In your drawing, I’ve “whited-out” all your annotations, and put big arrows on the times that were occurring with trend – the red dots. Then I looked at what happened if I went short at those times, and held the trade until the next green dot time – the time Michael would teach that buyers historically show up. This system I believe is taught in the videos as the “FM16 Trend Trade”. Well you can see from the mark up that every one of the setups was profitable….with 1 “flat” trade. A far cry from 33%. Notice how I wait for the 2nd of the 2 dots if the POWERZONE and AMACD dots are within 5 minutes of each other. That’s important….if two times are within a few minutes of each other, I was taught to wait for the 2nd one to “catch up” and come into phase. . .

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I don’t think there’s a person on here who would reasonably conclude they are telling you to trade “dot to dot”, all the dots. It’s never presented as a setup like you’re displaying. A setup involves a stop, a target, money management, a trading style (trend, counter trend, support and resistance, etc). Your chart is dot to dot to dot to dot to dot, and I can’t remember Michael or Ron ever teaching that was the way to ‘trade it’. My trading plan has very strict entry and exit rules that allow me to take between 80-120 ticks per day, per contract, more with recent volatility. If I took every signal from every indicator I’d be broke.

I’ve also attached the chart Michael put in the room to help people understand the Wyckoff theory I just told you. If you attend the classes each week, you should have a copy of this. Also, have you contacted Michael or Ron, or sat in any of their classes? They give away rules based strategies that have set entries and exits with trading plans built on the system that are profitable. They want you to succeed. I know because I’m using one of them… I have "coached" about a dozen other traders to have success similar to or better than mine. So it is teachable and transferable if you are willing to put in the time.

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Best regards,

Bob

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