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Statistically there is no edge gained from using technical
indicators. If your sample size is large enough you will eventually
find conflicting results from identical signals. Maybe your
ZYX crossover indicator signaled 70% winners over x period
time. Chances are the next x period of time will produce 30%
winners with all things remaining constant. An edge only exists
if you intuitively know which trades to take before hand.
Obviously in reality this never occurs.
Why do so many traders insist on bombarding their charts
with technical indicators? They're struggling and searching
for an edge. There's plenty of secret indicators offered for
sale over the internet these days. They show you great results
with promise of consistent future returns. A sucker is born
every day.
There are a few great trading systems on the market today,
including ours, that don't use technical indicators as part
of their logic. Most of these systems share a common theme.
They are patient and selective. While most day traders are
struggling and over trading their accounts, these successful
systems wait until specific rules are met before entering
new trades. Sometimes these rules are reached often and sometimes
the system's trader may go a week or longer without a setup.
We've found that the average eMini Futures trader spends
their first two years struggling because they're still hypnotized
by the power of a technical indicator. It seems everyone goes
through a stage where the Stochastics crossover or MACD divergence
captures their attention and dreams of nonstop winners becomes
the norm. Reality sets in, forcibly, after thousands of dollars
change hands and they go in search for a more down-to-earth
result. This is where we can help.
There are very few market patterns that are consistent and
successful. We hone in on what works best for us. Without
disclosing our own secrets, for obvious reasons, this system
does search and compare the current day's pattern to that
of a "control" pattern that has historically been
profitable. If a comparison match is found, and is statistically
significant, then an entry occurs.
The software (ELD) automates the entry and exit requiring
no human input. All open trades are closed EOD (end of day).
To participate in the ELD automation we require your TradeStation
Customer Number. Once this number is added to the ELD, the
trading logic will function specific to your account. Step-by-Step
instructions and videos make the initial setup a cinch.
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