SPM Method

[Trader666 10]

As you know its a simple MACD crossover.

 

steve46, this is NOT what it's about at all... but you were never one to let facts get in the way of your opinions.

 

As I mentioned before, the primary signal occurs when the "signal line" crosses the "zero line" of the display. This component of the MACD is corellated to "trend"....if you miss that however you still have a second chance as the MACD line itself crosses the zero line.

 

you obviously don't even understand basic MACD let alone SPM. The "signal line" is a 9 period moving average of the MACD line and as such lags the MACD line. Spelling that out for you, this means it will cross the zero line before the signal line does, not after it.

[steve46 12]

I think its wonderful that you folks are having such success. I have asked a third party if they would do a backtest using the rules found in the original thread. Surely that will confirm all the success stories we are hearing from you.

[Tams 20]

Here's the SPM strategy in EasyLanguage.

Someone can run it through the mill and see for himself.

 

inputs: FAVG(3),SAVG(9);

vars: FA(0),SA(0),FA1(0),SA1(0);

FA=average(close,FAVG);
SA=average(close,SAVG);

value1=0;
FA1=0;
SA1=0;

if FA<SA then begin
while FA1<=SA1 begin
	value1=value1+1;
	FA1=((FA*(FAVG-1))+(c+(value1*tick)))/FAVG;
	SA1=((SA*(SAVG-1))+(c+(value1*tick)))/SAVG;
end;
buy next bar at c+(value1*tick) stop;
end;

if FA>SA then begin
while FA1>=SA1 begin
	value1=value1+1;
	FA1=((FA*(FAVG-1))+(c-(value1*tick)))/FAVG;
	SA1=((SA*(SAVG-1))+(c-(value1*tick)))/SAVG;
end;
sell short next bar at c-(value1*tick) stop;
end;

[steve46 12]

Now as regards the concept of a "signal line"....here is the first post from the orignal thread

 

------------------

 

"2 min MACD on any of the emini contracts, watch for it to cross it's Moving Average Line with a Zero Line Cross, exceptionally high percentage trade, you can feel everyone jumping on.

Thing is just about every trader I know either only uses the MA cross, or the Zero Line cross... one is trend, the other is momentum... I cant believe how many good traders dont see that almost all the trades that really move have the combination of the two. They'll go long on a MA cross to the upside when it is well below the Zero Line and wonder why it fails and has no momentum

 

There has been 3 nice shorts in the last hour on the ER2 using that methodology, just nice little $200 scalps

 

Note: You can use a 9 period Simple Moving Average on the price chart to get you in a little earlier when you see it setting up"

 

--------------------------------------

 

As can be seen, the "setup" is the standard MACD with the option to get in "a little earlier" using the 9 period simple MA.

 

 

Clearly in the original thread, the 9 period simple moving average was NOT the signal, but rather an option that the trader could elect to use to get in earlier.

[Trader666 10]

Oh please steve46... first you said SPM was a "simple MACD crossover" (it is NOT), then you showed you don't understand MACD by writing the signal line crosses zero before the MACD line (it does NOT) and now you're trying to obfuscate your ignorance with a post from SPM (that's NOT what you were writing about before). Do you really think you're fooling anyone?

[Trader666 10]

Not even close "Tams."

Here's the SPM strategy in EasyLanguage.

Someone can run it through the mill and see for himself.

[steve46 12]

Just reporting what is written by the original author. Sorry if it doesn't serve you well. Clearly you were wrong. The post is there for anyone to read.

 

Finally just to give the concept a fair trial, I suggest that the person who tests the system also incorporate the 9 period simple moving average option so we can all see what effect it has on the results.

 

Good luck

 

Steve

Edited February 17, 2009 by steve46

[MandelbrotSet 10]

Hey Steve46 and Tams,

 

It's pretty obvious that neither of you actually know how to trade the system.

 

But please run your back tests and let us know how it works out for you.

 

LOL :haha:

[trader273 10]

Can you guys take this bickering back and forth back over to ET where it belongs? We get it, steve you dont think it works. Others do. Time to let it go. Why do each parties care what the other thinks??

[Trader666 10]

My suggestion for anyone wondering about SPM is to check out the original threads because this method does have merit from my tests on 1500 stocks from 2000 -- 2008.

 

Not only will it help you get a feel for price action which will improve your real-time results over the mechanical results by adding seasoned judgment, you'll eventually make it your own by adding a filter or some other tweak to even further improve your trading.

 

Check it out and see for yourself... steve46 has absolutely NO IDEA what he's talking about, either with respect to SPM or MACD as I showed on page 3 of this thread with excerpts from his own posts.

[sevensa 10]

Not even close Tums, and if you had listened to me you would have been posting blotters along with the other successful SPM traders rather than wasting 2 years paper trading with Jack Hershey and getting blown out of the water when you finally tried to trade it

 

Please refer to post #37 from trader273. You are happy with the method, so use it. Other people are not, so let them be. Just let it go...

[Guest Trader28]

Steve46 and Tams continually attacked SPM over at ET, why I have no idea? Perhaps seeing other traders post blotters so quickly and successfully didn't sit well with their own results.

 

They are treading very carefully in this thread but not really fooling those who have had any experience with them. I would suggest they concerntrate on finding their own successful method rather than trying to tear down mine, otherwise this will just become a war zone.

[sevensa 10]

If I may, can one of the moderators please close this thread? This is obviously not going anywhere anymore with the ET people making it just another ET thread.

[Guest Trader28]

If I may, can one of the moderators please close this thread? This is obviously not going anywhere anymore with the ET people making it just another ET thread.

I agree, as long as you understand it is specifically Tams who was sacked as a moderator from ET last week for altering, moving and deleting legitimate posts and steve46 who was basically excommunicated by his fellow traders from ET that are at the bottom of this

 

Those who want to post profits from day one as opposed to paper trading and jumping from one system to another as Tams and steve46 do can learn all they need to over at the ET SPM thread

Edited February 18, 2009 by Trader28

[Trader666 10]

If I may, can one of the moderators please close this thread? This is obviously not going anywhere anymore with the ET people making it just another ET thread.

 

Give credit where credit is due... Brownsfan019 (the OP) alerted people to a method that actually has merit but then steve46 started putting out misinformation about it out of ignorance and a personal agenda.

 

That's the real problem... let's not pretend it's anything else.

[diablo272 10]

If I may, can one of the moderators please close this thread? This is obviously not going anywhere anymore with the ET people making it just another ET thread.

 

I agree, please close it.

[Guest Trader28]

I agree, please close it.

 

I agree too, close it.. if for no other reason than I would be inundated with questions again.. I don't really want to go through that again.. if I wanted to be a guru I'd have to insist on all my followers being females.. clothing optional

[DbPhoenix 42]

I agree, please close it.

 

Done. Given that this thread was for some reason resurrected from last November, the current interest appears to lie in importing an ongoing "debate" from ET. Nobody cares.