Three years ago, while browsing the forums on the Tradestation website, it was then I came across my first instance of "the holy grail". Guys were chatting about the prospect of finding a strategy - a mechanical strategy - that one could trade with, and essentially print money untill their heart's content. Of course none of these guys had found the holy grail, but they were sure intent on looking.
I was skeptical about this holy grail. If one existed, surely it would exist no longer, because everyone would be on board and the market would crush them... wouldn't it?
Yes.
Hence none existed.
But no, it does exist. Over the past two years, through much delight and much loss, I know I have found the holy grail of trading. Before everyone gets excited, it's not a strategy that I can program in Fortran and hand out at $2000 a pop. It's not an overnight fad. It's not a method that will last for a week, and then reverse and crush an individual. This is tried and tested. This is true. And I believe I have found it.
My lowest low was the best two weeks of trading ever. Up $5500 in those 9 days, it seemed nothing could stop me. And that's exactly what did. After that, it was found.
The holy grail.
But it needs tested. It needs proof. The testing begins March 3rd, 2008.
Let's see what happens...
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17 comments:
Paige,
Holy grails...
The only one I know is arbitrage.
However, I shall follow along with great interest.
jog on
duc
Exactly... Scope or be scoped! At the end of March, we will evaulate the worthiness of the grail... until then...
matter of time before you learn what every systematic programmer has learned. hopefully wont be too expensive for you
Ah anon. brings forth the Black Swan debate.
Anyhow, I just stumbled across your blog.
I believe mechnical systems can be developed which will consistently produce profits. Where they become the holy grail is when the mechanical system is trusted by you to the extent that you follow it even as it seems to be failing. Also, the worst case scenario drawdown should be something you can stomach. If you can find a mechnical system to return profits which match your expectations while keeping drawdowns to a level that doesn't produce vomit, then you will have found the holy grail.
Anyway, I'll follow along.
Paige,
Obviously I require a translation, as I have no idea what your reply actually meant.
To *anon*
To be fair, no mention has been made of a mechanical system. Thus it may prove to be otherwise.
Wood,
I know a number of successful *mechanical* systems in bull markets.
Most talk about different systems for different markets.
It seems hard to design one for all market conditions, although the ones that are successful tend to be very short term, one or two days.
jog on
duc
Equine,
Just don't pick the wrong Holy Grail. You could get your face burned off like in Indiana Jones. ;)
-BD
Irrational exuberance!
Equine,
Just re-read your blog and you'll find the answer to this holy grail test. You were printing money early in Feb, maybe Jan, I forget. But then you got 'bored', tried to gamble on CROX and got burned. Why do you think you will not get bored with this new system and start gambling again? You were in the money, posting great numbers. It is funny how many traders get bored making money and want something different.
I do wish you luck and I hope you can stick with it. As someone who's switched systems, time frames, and all the rest too many times, I understand your position.
Good luck and hope my comment is more insightful than insulting.
Masterjaz out
You are dead right man... I'm glad you're following along... I actually got bored from scalping and making money... then tried some other "tricks". It's interesting how it works... keep watching to find out the result... more to come...
Little girl... one reason I am sure you will lose all your money, is because you are too arrogant, and the market has been humbling arrogant traders looking for the easy money with their fool proof system.
Watch out... you'll be another statistic of a trader wannabe that lost all her money.
IMHO, the Holy Grail of trading is simple: Money management and position sizing. In theory, so easy to put in practice, yet so difficult while confronted by fear and greed - the two base emotions that come with trading.
Nice blog, keep up the good work.
McChief is on the ball... I'm glad to see someone's on the right track... it definitely worked for me today...
this is a joke.
McChief for prez.
hi Paige,
Re 'The Holy Grail'
Can I quote from another post of your's ?
"Swap the Blues with the Reds and it's perfect."
I wish I could come up with these ideas.
Best of luck with your new strategy,
LiggerPig
Haha... exactly... stick to what i do best is very much part of it... panicking/gambling is definitely not... re the RIMM trade.
paige, been there, done that. I tried creating an automated trading system last year. Spent at least a few months on the thing. Even blogged about it. And I came to the conclusion that no automated trading system works forever. It may work for a few days or a few weeks, perhaps even a few months, but the markets are too dynamic to be "programmed".
The only way to make money while you sleep is to buy and hold...i.e. long term investing. :)
Good luck though.
Hey Boogster... you may not know it, but I have been following your blog for two years now. You were really going string there last year... it's those big blow-outs that kill us, at least it has with me!
In regards to "the holy grail" - this post was pure sarcasm... I thought a VT boy would've realized that! The holy grail is strategy, discipline and I believe most important of all - apathy... once you are apathetic towards the market, everything falls into place. There is a great teacher out there who taught me that.
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