George Douglas Taylor - futures trading

Go Back

> Trading Wiki > Traders and Trading Methods

George Douglas Taylor

George Douglas Taylor is the author of the Taylor Trading Technique(copyright 1950 George Douglas Taylor), he traded commodities during the 1940s and 1950s see Perry Kaufmann Trading Systems and Methods pp. 430-432.Mainly he was a wheat trader. His Taylor Trading Techique has inspired several Traders. The most successful is maybe Linda Bradford Raschke.

In his preface Taylor states the following :
"While the statements in the work are predicated upon fundamentals, no reader should accept them as hard and fast rules, without exceptions. Statements that have been made are badsed on long period of observations of what generally takes place, around these objectives but a trader must not be so rigid as to stick to a stubborn theory. Successful speculation is not based on any one set of inflexible rules and a trader must be ready to change when conditions change, however, the trader who knows how to act when the expected happens is in a better position to act when the unexpected happens"
The complete book is packed with such hard to read sentences, but reading between the lines unveils a genious and astute trader.

Taylor incorporated several concepts in his way of trading.

Stocks or Commodities have a 3 day cycle
His basic concept is to see the market as a continous cycle which consists out of a buy day a sell day and a short sell day. This cycle is determined once by making up a so called book (in nowadays a excel sheet). The sheet contains the date the open high low and close of the day. After 10 days have been written down the trader should determine the lowest low of those ten days and make this day the buy day. The next day after that a sell day follows after the sell day a short sale day is counted. After that the cycle starts again. (See pp. 15 Taylor Trading Technique)

High low Timing Trend
The other concept is that high and low are made first should alternate.
In his point of view this makes up a timing trend.
An example starting with a low made first on a buy day. Transforms to an objective made first.
If the following sell day makes a high first. This transforms also to an objective made first.
If the high is made first on a short sell day this will transform to an objective made first.

If the buy day low is made last Taylor would get alerted and make the Sell Day a Buy Day and would expect the short sale day to have a objective (high) made last. Therefore the Buy Day should get a short sale day by making
The high first. This allows him to shift the cycle and adopt in a flexible way to different market conditions.

Ways to determine the 3 Day Cycle

Murray A. Ruggiero explained his way to trade an automatic taylor trading cycle based sytem in the Book "Traders` Secrets Psychological & Technical Analysis" pp. 180-182 easylanguage code

Linda Bradford Raschke published one way in her book "Street Smarts" She uses the ROC(2) to determine a Buy Day. But does not use a cycle for trading.

George Angell "Winning in the Futures Market: A Money-Making Guide to Trading, Hedging and Speculating" he describes how to determine the cycle for his LSS3 (Long-Sell-ShortSale) Trading System which takes all the concepts of Taylor into account. But this system was proven to be tested profitable without taking comissions into account. Therefore the CFTC (Commodity Futures Trading Commission) found him guilty of fooling his customers, see, It would be nice to have another source in here The description of the LSS3 is also included in the published Version of "Taylor Trading Technique"

Created by  FB2012 , June 14th, 2013 at 04:36 PM
0 Comments, 3,866 Views
Page Tools
Search this Page

Posting Rules
You may not create new articles
You may not edit articles
You may not protect articles

You may not post comments
You may not post attachments
You may not edit your comments

BB code is On
Smilies are On
[IMG] code is On
HTML code is Off

All times are GMT -4. The time now is 01:54 AM.

Copyright © 2016 by All information is for educational use only and is not investment advice.
There is a substantial risk of loss in trading commodity futures, stocks, options and foreign exchange products. Past performance is not indicative of future results.

Page generated 2016-10-26 in 0.08 seconds with 19 queries on phoenix via your IP