Rank: Member
Groups: Registered, Registered Users Joined: 11/13/2005(UTC) Posts: 10 Location: New York
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I have decided to post a weekly diary on my experience using the new
RMO system. I want to do this so that other users can learn from my
experience and I am also interested in helping other traders be
successful. I am a non-pro trader (equities only) with about 5 years
experience. I trade full-time from home and have been decently
successful, although I am certainly not an all-star trader.
To start, I have been looking for a better foundation on which to base
my trading decisions, as most of you have. Recently, I have been in a
losing situation with most of my trades for reasons that I will briefly
discuss. I think that my biggest problem has been a total failure to
understand the overall trend of a stock. I am just famous for placing
those wonderful counter-trend trades!!! :( Guess what? They don't
work!! My other big weakness is money management, which is probably the
most important part of trading, but is also probably the least
understood and least talked about. Everyone is so focused on entries
and exits and most traders fail to really comprehend money management.
I fall into that category as well. I typically get in and out in
halves. In other words, I only get in and out with half my position at
a time. I just seem to be doing it in the wrong places and at the wrong
time. I put this up to a lack of understanding about overall
trend and when it has really changed (or not).
With that being said, I will now briefly discuss my initial impressions
about the RMO. I just signed up for QouteCenter with MetaStock Pro on
Friday, Oct. 20. I have spent the entire weekend so far laboriously
going over charts and using Explorations to form some opinions and make
observations.
First Impressions:
So far, the RMO trading system looks like an outstanding winner. I am
truly impressed with its ability to detect the correct overall trend of
a security. The RMO Oscillator will absolutely keep you in the correct
direction of the trend far better than any other trend indicator that I
have ever seen. I can see that the entire RMO system can be used in
many ways, which is great because it offers one the flexibility to use
many different strategies to find trading opportunities. I have seen
the timing of its Blue and Red Arrows and I do believe it is almost
predicitve in its power to warn you of a possible change in trend.
The entries and exits are, so far, excellent and well timed when seen
in hindsight. The rules, which are nicely and clearly discussed in the
training videos, seem to keep you in trades for the vast majority of
the move. You will rarely catch the exact bottom and exact top of a
move (if you are long) but if you can catch say 80% of the move it can
be labeled a fantastic trade. You are aiming to catch the bulk of the
move and the RMO seems to achieve that goal based on what I have seen
so far.
I looked back at some of the losing trades I placed this past week, and
it was clear, based on the RMO model, that those trades should have
NEVER been placed. So, that excites me because it will (hopefully)
prevent me from placing trades that are counter-trend.
I also looked at exterme situations in the market because those
situations are often the most difficult to trade and typically
throw-off many mechanical systems. For example, I looked at the RMO on
an intraday 10-minute chart on CAT on Friday. The short signals that it
gave were, in hindsight, awesome.
So, I will keep everyone updated on a weekly basis and I hope that this will provide some help to you.
I will be glad to answer any questions, please PM me and I will get back to you.
--Predator
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Rank: Advanced Member
Groups: Registered, Registered Users, Subscribers Joined: 5/10/2006(UTC) Posts: 252
Thanks: 11 times Was thanked: 9 time(s) in 6 post(s)
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I appreciate your efforts to document your experiences with RMO; as a 9.1 user I don't have it and am quite skeptical about both RMO and the necessity to upgrade at all. In particular, if you can discern anything about how it works I'd be less inclined to dismiss it as another black-box that is doomed to fail. For interesting perspectives on market psychology and money management I'd recommend reading Alexander Elder's books. With my technical background I easily fall into the trap of expecting logical and rational results from technical analysis; Elder has helped me understand that TA is really just applied mass social psychology. Elder and one of his students/customers teamed up to produce a trade manager/diary/money-manager system called Trader's Governor; I started a thread on it here:
Trader's Governor
So far I've found it to be well designed and very complete for the money (by this I mean $300 saved me hundreds of hours of design, programming and test to produce a system I had in mind similar to it), but I haven't taken it "live" yet with real trading.
Looking forward to your reports.
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Rank: Member
Groups: Registered, Registered Users, Subscribers Joined: 4/30/2006(UTC) Posts: 15 Location: North Carolina
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Preditor,
I've been working on a trading system for a couple of years. I'm non-pro as well, but not full time. I just finished putting it into a plugin format successfully. My system is fairly simple. It produces entry and exit signals for swing trading/trend following. Also it has some new trading bands for support and resistance indication.
From your message above it looks like you've done some system evaluations before. I'm wanting to get some feedback from peers. If your interrested let me know.
Thanks,
K
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Rank: Newbie
Groups: Registered, Registered Users Joined: 3/11/2007(UTC) Posts: 8
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Predator,
I too use RMO and for the Forex. I would like to correpond with you and build a users team trusting the software.Those on this forum trashing it have not drived into it fully.
What I do is plot the Swing3 (blue line) crosses of zero of the 5,15,22,30 minute timeframes on to the 60 minute Swing2-3 chart. This shows me how the samller timeframes are building the 60. If you wait until the 60 Swing3 crosses zero, most of the move is over. So you have to enter when the 30 has crossed showing strength that the 60 will follow suite.
If the 30 Swing3 has crossed zero and the 60 Swing2 line is converging on the 60 Swing3 line watch out.
RMO is ususally right. If you are thinking of entering a trade long and the 60 has a red arrow, STOP. Wait for a blue 60 arrow to negate the read before even thinking about going long.
These timeframes suggest I am an active trader. Really my trades run for a few days.
Joe
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