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

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