Taylor Trading Technique

[Gann Trader 10]

Very difficult method, works on paper trading but in real time it did not work for me, I tested it for several weeks on paper and the results were great but when I applied the method with real money, I immediately lost about $1000 in just a few days. I would honestly not recommend this method unless you have taken the time to thoroughly test it on paper and have enough confidence that it will work for you in real time trading. Or perhaps you could just use it as a timing method, to determine the direction of the market, that is to find out what day is a Sell day or a Buy day, then use some type of simple crossover moving average system, like Bolinger bands to refine your entry price. But simple relying on the Taylor method 100% could prove to be a disaster. I honestly studied and tested this method over several months, I kept and maintained a book and logged all the trades on a daily basis, but strangely enough once I decided to use it real time it failed miserable.

Maybe other have had better luck with it than I have. But I have since put the book back on the shelf and have no plans to open it again in the near future.

[Gann Trader 10]

hi mitsubishi, Good hearing from you and I hope all is well with you and your family. Well believe it or not but I am just using some basic moving average indicators along with chart pattern recognition. Al Brooks has written several excellent books on price action, just do a google search, simple having a sound knowledge of chart pattern is all you need to make money trading the markets and I found this approach to be reliable when used in conjunction with a simple moving average indicators. Taylor's idea is sound but perhaps todays market is a lot different from the market that Taylor traded back in the 1950's.

richbois Has done extensive work with the Taylor method and he is also a vendor, I have a lot of respect for the work he has done and have read and learned a lot from what he discussed in his thread on this site and on My PIvots, perhaps he can share with us his experience, but I would really love to hear from anyone who is using this method to trade real money that has had success, its quite different from paper trading where there is no pressure to make a decision

[bobcollett 10]

Hi GannTrader,

Perhaps go back to "Beyond Taylor"

Have a look at Patucas methology

Start at post 595

Pay attention to post 612 .... and 771.

I accept Patuca rephases. He changes the SELL days to something else:)

 

And he made money.

 

I would love to see somebody else take up the challange.

kind regards

bobc

[Gann Trader 10]

hi mitsubishi, Actually I never stop trading, I just stop using the Taylor method after my very disappointing experience, so I had nothing else to share. with the group since I was no longer using it. I am a day trader, I trade primarily the Emini SP , the Taylor method just does not fit my style of trading. Its probably useful for someone that position trades but I am flat all my position before closing.

bobcollett I will check out page 595 as you suggested, thanks

[zdo 20]

I was asked by PM why I suspended the ~4.5 day ‘book’. Don’t have time to post a good solid explanation, but here are some references and links in case you are interested.

 

 

 

 

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Last edited by tradingwizzard; 11-06-2013 at 10:38AM.

[zdo 20]

Given that zdo is not a vendor,why the hell does wiz keep deleting links?

 

Mits,

 

to be honest, after the first incident Twiz has deleted no links... he just told me not to post anymore.

 

 

Only the first

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Last edited by tradingwizzard; 11-whenever 2013 at sometimePM.

 

is genuine.

 

All those following are 'civil disobedience' to policy... not him personally... at least I hope I'm dealing with policy... and not him and his apparent inability to distinguish btwn references and spammy trash links

 

zdo

[zdo 20]

Given that zdo is not a vendor,why the hell does wiz keep deleting links?

 

That’s right, peeps, I am definitely not a vendor. I endorse no products up here on TL – except occasionally I do give TS a plug as an adequate automation ‘prototyping’ environment. When I post a link, it’s not to promote the authors’ services. When I post a link it is either as a citation / reference or it is to share a point of view --- usually an alternative to the ‘current DOMINATING paradigm’ point of view …and he or she has said it better than I could quickly compose into a post (or ,according to Suntrust, say at all ). Even if it’s ten freakin links stacked up, it’s is not in disrespect of the site. … Dear moderators - you need to be careful you don’t squash what little ‘neurodiversity’ that still arises on TL… god knows us users do a good enuf job at that…

 

 

Underlying this civil disobedience is another point - in each era, yes you can ‘just trade an edge’ – but to really excel you must also find a key ‘leading ‘ component to the times at hand…

Look at Livermore in the context of the era he performed… if he were he performing from say 2007 to now he would not be able to thrive as a ‘great bear’ (or whatever his nickname was).

Richard Dennis tuned to a certain time in the ags… his methods do not thrive outside that time.

The investing methods of the wizard of omaha will not thrive going forward… he tuned to and lead only in a certain ‘money’ environment that will not persist.

Many other examples abound --- most of them are 'pimco' bland... still...

 

Most traders today are caught in a great nominal trap… and, unfortunately, Elliott Wavers suffer to a greater extent than many other ways of ‘analysis’ in this nominal trap …

 

[References REMOVED]

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Last pre-crime-d by tradingwizzard; 11-06-2013 at 03:18PM.

[zdo 20]

Wiz is to moderating what hacksaws and leeches were to surgery once upon a time.And I think there's an EW link in that statement somewhere...

 

Did you know that wiz used to be an actor?Yes he used to be the one inside the black Dalek (very prestigious and rare colour for a Dalek) His greatest moment came when he announced "you will be exterminated!" before being shoved down an empty lift shaft.I remember catching a glimpse of his @### (edited- no product promoting please) training shoes and thinking ah,that's why that Dalek moved slightly quicker than all the others.

Did you know Daleks conquered the outer regions of the Andromeda nebular in Elliott wave patterns? The last planet to be exterminated in that region was exactly 1.618 (million) light years from Roswell

 

Daleks,like markets haven't changed much through the years.There's still a high D and a low D and the range (population of daleks) is basically unchanged no matter how many times you kill them.Volatility tends to rise when Davros is upset but basically Daleks,like moderators are a very predictable species.....post accordingly...or not...it's your account.

 

Dang mits, you are being awful hard on Twiz.

He is in a thankless position.

This link (unless he edits it out :rofl: ) sums up his plight

I like Monkeys. A little too much perhaps

[MightyMouse 12]

Dang mits, you are being awful hard on Twiz.

He is in a thankless position.

This link (unless he edits it out :rofl: ) sums up his plight

I like Monkeys. A little too much perhaps

 

I read the " I like Monkeys" story and do recognize that I alone am responsible for my actions, but I do feel a need or a sense of a need to blame you for making me completely waste unrecoverable time.

[zdo 20]

I read the " I like Monkeys" story and do recognize that I alone am responsible for my actions, but I do feel a need or a sense of a need to blame you for making me completely waste unrecoverable time.

 

MM,

Even though I prefer your precious time is never wasted - if you walked into it, I can offer no apologies…

…(albeit public), that post was a note clearly addressed to Mits and it was clearly about the situation Twiz is in and Mits’ treatment of Twiz.

 

Considering that most of my posts are intended for a very small audience rather than ‘the large one’, one option is to consider putting me on ignore. I’m rarely attempting to add broad value to the site... beyond occasionally sincerely trying to keep a topic on topic...

…add to that that my constructs of economics, etc are at considerable variance from the dominant mainstream economic, etc. paradigms

…add to that that my communication skills suck… and that trading offers me an easy perennial dodge to developing them to the levels of quality that most work requires...

 

speaking of value…

members (and owners) need to acknowledge that the ‘good stuff’ is never going to be laid up in posts. The vendors provide only so much before requiring payment. And non vendors, like myself, for the most part wouldn’t ‘provide’ even if you did pay

… Basically, trading forums never provide answers to the ‘great’ trading questions.

The quality of the replies is in inverse relationship to the quality of the queries… yada yada….

To be anti – anti ‘vendor’, or anti ‘non-sharers’, or anti ‘stupid’ , or anti…etc. - is for the most part a waste of personal energy… to complain or even wish that a broadly applied collegial attitude by all members would make for ‘answers’ or worthwhile reading is also, for the most part, a waste of personal energy…

It's a worthy thought experiment to ask if a digital currency could also act as a reserve currency.

 

Hoping you didn’t bother to read this,

 

Taylor be rolln over in his grave...

 

zdo

[MightyMouse 12]

MM,

Even though I prefer your precious time is never wasted - if you walked into it, I can offer no apologies…

…(albeit public), that post was a note clearly addressed to Mits and it was clearly about the situation Twiz is in and Mits’ treatment of Twiz.

 

Considering that most of my posts are intended for a very small audience rather than ‘the large one’, one option is to consider putting me on ignore.

 

If you had really meant it for mits only, then you would have PM'd him.

 

I am not able to put you on ignore, because then I wouldn't be able to know what you are going to say next.

[zdo 20]

If you had really meant it for mits only, then you would have PM'd him.

 

 

'addressed' to ... not meant for only

I rarely speak PM... open conversations... and if other peeps 'listen'...

 

I am not able to put you on ignore, because then I wouldn't be able to know what you are going to say next.

 

ain't dat a bitch? I'm in the same dam bind with you too

 

ya'll have a great weekend.

[Jeffreyvnlk 10]

Hi guys,

 

This thread amazing, reading WHY' posts awesome. I keep reading it but not finish yet. I trading gold according to TTT but recently Larry Williams calling for short SP500 on last Wednesday so i eager to trade SP500 now. I respect his way trading but seems not suitable for my style. Now I stick to TTT and glad when Larry answered me that he valued TTT much as well.

 

About LBR, she good at explaining Taylor but she applied more Toby Crabel who I will read his stuff soon.Toby compensated very well to Taylor. Also ROC2 of Linda taken from Toby

 

On the last page of TTT, Linda had some words and she said she followed 4 role models: Larry, Taylor, Toby and Bob Buran. The last one i never heard of but I will find out soon after grasping all ideas from the rest of 3

 

Good luck

Edited November 10, 2013 by Jeffreyvnlk
grammar

[Gann Trader 10]

Tony Crabel book is a must read, "Day Trading with short term price patterns and opening range breakout" Linda Bradford Raschke also wrote a excellent book, "Street Smarts: High Probability Short-Term Trading Strategies ", read these 2 books and they will improve your trading

[Jeffreyvnlk 10]

Tony Crabel book is a must read, "Day Trading with short term price patterns and opening range breakout" Linda Bradford Raschke also wrote a excellent book, "Street Smarts: High Probability Short-Term Trading Strategies ", read these 2 books and they will improve your trading

 

Actually I know TTT from Street Smart. Toby book already on my bed but hesitated to reading because his stuff as hard as Taylor's

 

This is my pic of gold from TTT with frequencies

[Jeffreyvnlk 10]

According to my marking, today all the sell days for oil, gold and SP500:

- Oil expected BV today then rally according to Larry (another techinquie not realting to TTT at all). Also by Linda teaching we can see a coil and NR7

- Gold already gets BV in Asia today, expected deep down before rally

- Sp500 just watching the close. Would short sales tomorrow. R just recovered 2/3 of D

 

TTT focused on BV

Edited November 11, 2013 by Jeffreyvnlk

[YertleTurtle 10]

Anyone still lurking in here? I'd like to get some people excited about Taylor again.

[tradelab03 10]

The formula used for the Taylor rule looks like this:

 

 

i= r* + pi + 0.5 (pi-pi*) + 0.5 ( y-y*).

Where:

 

i = nominal fed funds rate

r* = real federal funds rate (usually 2%)

pi = rate of inflation

p* = target inflation rate

Y = logarithm of real output

y* = logarithm of potential output

[bobcollett 10]

The formula used for the Taylor rule looks like this:

 

 

i= r* + pi + 0.5 (pi-pi*) + 0.5 ( y-y*).

Where:

 

i = nominal fed funds rate

r* = real federal funds rate (usually 2%)

pi = rate of inflation

p* = target inflation rate

Y = logarithm of real output

y* = logarithm of potential output

 

Hi tradelab,

Are you serious or is this your way of saying TTT is hogwash?:(

If the former , please explain how you worked this out?:confused:

Please add some real numbers.Oil markets perhaps!!

regards

bobc

[zdo 20]

Hi tradelab,

Are you serious or is this your way of saying TTT is hogwash?:(

If the former , please explain how you worked this out?:confused:

Please add some real numbers.Oil markets perhaps!!

regards

bobc

 

What's really sad is that TL members posted almost 1190 posts working on this topic and the whole time it could have been handled with just that one formula ... thx o3!

[FarridinK 0]

Hi everyone. 

Excellent thread. Thanks to everyone who has contributed, it has been a massive help in learning to understand the TTT method.

Is anyone still using pure Taylor method? I see some people have their own interpretation of Taylor's method but I would like to understand pure Taylor before deviating. 

I have gone through the whole thread I feel I am understanding the core concepts to the method but am having a little trouble getting the entries and exits right. I am using just a standard online broker I have some questions that if someone could help answer would be great.

1) without having access to time & sales data ("the tape") how would you monitor price action for entries at or around previous highs & lows? Are there certain indicators like volume that could be used?

2) Can the method be used with a spread bet account and be profitable is it better for cfd/share dealing? 

3) From what I understand Taylor was more concerned with daily data but what intra day charts would be useful?

I have only been studying TTT for about the last month or so and I haven't traded it live yet so just using a demo. Im based in the UK so will mainly be looking to trade stocks on LSE. I haven't got much experience in trading live. Would really appreciate any input. There will probably be more question so just hope we could maybe get this thread up and running again. 

Thanks in advance for your time 

 

Farridin

[FarridinK 0]

On 06/02/2015 at 11:24 AM, tradelab03 said:

The formula used for the Taylor rule looks like this:

 

 

i= r* + pi + 0.5 (pi-pi*) + 0.5 ( y-y*).

Where:

 

i = nominal fed funds rate

r* = real federal funds rate (usually 2%)

pi = rate of inflation

p* = target inflation rate

Y = logarithm of real output

y* = logarithm of potential output

This is JOHN TAYLOR not George Douglass Taylor so this something completely different?

[richbois 10]

5 hours ago, FarridinK said:

This is JOHN TAYLOR not George Douglass Taylor so this something completely different?

you are right nothing to do with TTT

[richbois 10]

12 hours ago, FarridinK said:

Hi everyone. 

Excellent thread. Thanks to everyone who has contributed, it has been a massive help in learning to understand the TTT method.

Is anyone still using pure Taylor method? I see some people have their own interpretation of Taylor's method but I would like to understand pure Taylor before deviating. 

I have gone through the whole thread I feel I am understanding the core concepts to the method but am having a little trouble getting the entries and exits right. I am using just a standard online broker I have some questions that if someone could help answer would be great.

1) without having access to time & sales data ("the tape") how would you monitor price action for entries at or around previous highs & lows? Are there certain indicators like volume that could be used?

2) Can the method be used with a spread bet account and be profitable is it better for cfd/share dealing? 

3) From what I understand Taylor was more concerned with daily data but what intra day charts would be useful?

I have only been studying TTT for about the last month or so and I haven't traded it live yet so just using a demo. Im based in the UK so will mainly be looking to trade stocks on LSE. I haven't got much experience in trading live. Would really appreciate any input. There will probably be more question so just hope we could maybe get this thread up and running again. 

Thanks in advance for your time 

 

Farridin

I am probably to only Pure TTT guy out there. After 10 years of doing Taylor  i still dont beleive in changing the cycles when it dont suit you. Exact Entries and Exit are not really part of the Taylor method. This method gives you guide lines. My system has improved over the years and added Ranges and Standard Deviations to the basic method. 

Taylor used daily date to calculate his ranges and targets for the next day. Believe it of not it still works after 70 years. The intraday data is used for entry and exit . Yes it is not evident but that comes with experience. I find that trading stocks with TTT is very hard, Futures are easier. I guess you could use Future levels to trade CFD's   but i havent tried thatInsert other media

Richard   TaylortradingTechnique.com

[FarridinK 0]

42 minutes ago, richbois said:

I am probably to only Pure TTT guy out there. After 10 years of doing Taylor  i still dont beleive in changing the cycles when it dont suit you. Exact Entries and Exit are not really part of the Taylor method. This method gives you guide lines. My system has improved over the years and added Ranges and Standard Deviations to the basic method. 

Taylor used daily date to calculate his ranges and targets for the next day. Believe it of not it still works after 70 years. The intraday data is used for entry and exit . Yes it is not evident but that comes with experience. I find that trading stocks with TTT is very hard, Futures are easier. I guess you could use Future levels to trade CFD's   but i havent tried thatInsert other media

Richard   TaylortradingTechnique.com

Hi Rich,

Thank you for your reply. 

Have you been trading pure Taylor all that time or do you use it along side other methods? 

So do you use time & sales data as Taylor mentioned with regards to looking for support buying etc?

Please could you explain how he used the previous days ranges for targets? I think I understand that on a buy day you would use the ss low to look for support for entries and the buy day high is your sell day objective, SS you use the sell day high to look for resistance for entries and the ss day low as possible exit for you ss trade. Im still trying to figure out how to use the decline and rally columns to gauge future movements as there doesn't seem to be any similar price movements. Im keep a book on 3 stocks right not not to trade live but just for educational purpose. Would you recommend trying TTT in the Futures Market instead? 

Also if price gaps down on open on SS day, trades down all day and rallies up a little from towards the end of the day to maybe half the days range, with the high of the day as the open price would that be low made 1st or high 1st? 

By the way working my way through my pivots. Hopefully will pick up some more helpful tips. 

Thanks again for your time.

 

Farridin