It's amazing how many vendors are out there. I just found thesmartcharts.com . They are using a 5EMA with another indicator. Looks like a good method. The second indicator looks like super trend, but it seems to follow price more closely and does not have the abrupt transitions when trend changes. Also kind of looks like a stepMA. Has anyone else looked at their indicators?
Last edited by Big Mike; April 5th, 2010 at 04:42 PM.
Reason: clarified title
Platform: market delta, multicharts, no matter how hard i try not too, i still use ninjatrader
Favorite Futures: cl,6e,nq,tf
Posts: 128 since Oct 2009
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Hey Cory or anyone - I havent figured out how to do the settings for this one... on the ES 4 range chart... And do you know if there is colored version to indentify trend change etc. Thanks for the help!!!!
I helped papertrade their indicator for several months in the development phase and it does not work as purported. They sometimes suggest to take all arrows, and other times, just the "valid" ones, but there was no way to ever get a consistent def of what valid is (this observation is pulled from the examples on their site and my actual experience, it is not my opinion).
When you use a math formula to determine entry, such as an arrow, then every signal is as valid as the last. They're either all valid or not. Valid doesnt equal winners, but to say that a particular arrow is "wrong" means the whole logic behind the programming is wrong. This was a great source of consternation for me. The programmer agreed that an arrow is an arrow, but the CEO, who has very little practical experience trading, did not, and insisted we trade some arrows, but not others. This defeats the purpose and the supposed strong suits of the indicator.
At the end of the day, if you already have a strong trade understanding with risk mgt skills, than you are already doing what this indicator is intended to provide, which is alert you to possible trend changes, and then keep you in that trend until it ends. It will not dramatically improve your skills and there is no reason to buy it. If you don't know what you're doing, then this indicator will likely chop you to death, rather than teach you what you need to make it as a trader, which is setup selection and risk management.
Take nearly all the examples on their site, and apply the same rational they use to enter the trade, be it the step up in the indicator, the 5ema, whatever it is that gets them to enter. Usually you can see several other points where the same logic applies, and yet, no trade.
This indicator incorporates a huge amt of end-use decision making, so the claims on their FRONT PAGE
This indicator will work, if you pick the right stock and right entry. But then again, so will a simple MACD, so it doesnt add a lot in that regard.
Their chat room and back end mgt is disorganized (at least when I was there) and more startling, the CEO didn't have a business plan for the better part of a year and spent several months toying with various ways to sell the promote or sell the program before just deciding to "go with it." In a sense, they are flying blind.
This is sad, because when you DO trade EVERY arrow on a high beta stock, you may end up with 50 trades a day, but the system is net profitable in my papertrade experience. However, you must trade multiple stocks, all day, and through a prop desk to achieve commissions low enough to make it viable. Due to this limitation and fees, it would be difficult for anyone not trading through a prop desk with 200k + to make reasonable money.
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After looking at the fantail I realize that like so many indicators that are marketed as magic bullets that it's really nothing special. I put it on a chart with a 21SMA with plot style set to square. They are so close you might as well just use the MA.
Last edited by Maestro; April 24th, 2010 at 07:41 PM.