"Trading Day by Day" by Chick Goslin

[KarlaF]

cant put it on paper dow will hit 80 today++++

sorry but i don't understand 10680 or 10800 or just a 80 point range?

 

[og5]

Hi Klal,

Support sent it to me, if anyone else needs it here it is:

ma1=MA(C,3);
ma2=MA(C,10);
mcd=ma1-ma2;
Signala=MA(mcd,16);
Plot(Signala,"MACD(3,10,16",colorRed,1);
Diff=mcd-Signala;
Plot(Diff,"MACD Signal",colorBlue,1);
Plot(0,"",1,1);

 

[hornblower]

og5
so macd 3.10.16
have you considered price ocs10-20 exp and or price osc15-25 exp
and adx set at 14
edit what about macd 8.17.9
it is important to have short and long signals

 

[klal]

Hi og5,

Here's my take on Goslin's "lines." Note that this code lets you play around with the parameters as you wish though the defaults are set to the recommended values. You can also plot the lines using either MA or EMA and judge the results for yourself.

Don't know what version of Amibroker you have, but if you encounter any problems using this code, feel free to ask for help.


// Chick Goslin's Lines
// Params
Lt_pds = Param("Long Term Periods", 49, 1, 500, 1);
int_pds = Param("Intermediate Periods", 16, 1, 100, 1);
Short_Osc_pds = Param("Osc - Short Periods", 3, 1, 100, 1);
Long_Osc_pds = Param("Osc - Long Periods", 10, 1, 100, 1);
MA_r_EMA = Param("MA-1, EMA-2", 2, 1, 2, 1);
st_col = Param("ST-Color", colorDarkYellow, 42, 5000, 1);

if (MA_r_EMA == 2)
{
// EMA calcs
Long_term = EMA(C, Lt_pds);
Intermediate = EMA(EMA(C, Short_osc_pds) - EMA(C, Long_Osc_pds), int_pds);
Short_term = EMA(C, Short_osc_pds) - EMA(C, Long_osc_pds);
}
else
{
// MA Cals
Long_term = MA(C, Lt_pds);
Intermediate = MA(MA(C, Short_osc_pds) - MA(C, Long_Osc_pds), int_pds);
Short_term = MA(C, Short_osc_pds) - MA(C, Long_osc_pds);
}

long_rising = Long_term > Ref(Long_term , -1);
long_falling = Long_term < Ref(Long_term , -1);

int_rising = intermediate > Ref(intermediate, -1);
int_falling = intermediate < Ref(intermediate, -1);

Short_rising = Short_term > Ref(Short_term, -1);
Short_falling = Short_term < Ref(Short_term, -1);

Long_text = "";
int_text = "";
Short_text = "";

if (SelectedValue(long_rising == 1))
long_text = "Long Term is rising";
if (SelectedValue(long_falling == 1))
long_text = "Long Term is falling";

if(SelectedValue(int_rising == 1))
int_text = "Intermediate is rising";
if ( SelectedValue(int_falling == 1))
int_text = "Intermediate is falling";

if (SelectedValue(Short_rising == 1))
Short_text = "Short Term is rising";
if (SelectedValue(Short_falling == 1))
Short_text = "Short Term is falling";

Long_text;
int_text;
Short_text;

// Decide on Intermediate plot's color - if rising, green, else black
Intermediate_col = IIf(Intermediate > Ref(Intermediate, -1), colorBrightGreen, IIf(Intermediate < Ref(Intermediate, -1), colorBlack, colorWhite));

Plot(intermediate, "Intermediate", Intermediate_col, styleDots|styleThick);
Plot(Short_term, "Short Term", st_col, styleLine|styleThick);

Hi Klal,

Support sent it to me, if anyone else needs it here it is:

ma1=MA(C,3);
ma2=MA(C,10);
mcd=ma1-ma2;
Signala=MA(mcd,16);
Plot(Signala,"MACD(3,10,16",colorRed,1);
Diff=mcd-Signala;
Plot(Diff,"MACD Signal",colorBlue,1);
Plot(0,"",1,1);

 

[og5]

hornblower, I'm not sure of the indcators you suggested but I got the advice to use a 3,10,16 MACD from ealier posts in this thread (if you see my earlier post it is important to have the MACD use SMAs to match chick's lines) But yes the 3,19,16 MACD shows both the SL (10 day avg price minus 3 day avg) and ML (176 day avg of SL)

Klal, thanks for the code I haven't tried it yet but it looks much nicer. I see that you have the lines change colors based on direction

Thanks again

 

[uk_casius]

HI all,
I just want to ask if anyone knows (or has an opinion) as to wether it matters if you use EMA or SMA on Chick's system?

I use futuresource.com's MACD indicator which unlike Chick's system uses EMA differences. I would have thought that if anything, using EMA would be more succesful becuase it removes some of the lag that SMA's show?

 

[A Dashing Blade]

. . .
I just want to ask if anyone knows (or has an opinion) as to wether it matters if you use EMA or SMA on Chick's system?
. . .

I'd say it didn't matter, Chick is careful to emphasise that simplicity is a virtue. As long as the indicators are generally reliable then simple/exponential, 48 day/50 day doesn't matter

 

[pb]

Chick suggests using 'averages', so one assumes he uses SMA, not EMA. Also if you look at the charts, you'll notice the MACD lines are quite smooth, like SMAs.

EMAs will remove the lag, but may also prompt you to enter early. I however don't think it really matters what averages you use or what exact parameters you use if your methods are sound and you get the general idea right. The search for the best parameter combination is an elusive one.

I am currently forward testing Chicks methods.

 

[T2WBookshop]

Trading Day by Day is also available for purchase from the Trade2Win Bookshop, currently cheaper than Amazon.co.uk.

T2W Bookshop

 

[Christrader]

Hello everyone,
I just wanted to say I'm a proud new member here. I've used many boards over the years and I can safely say that this is the most professional and courteous board I've ever encountered. I'm new to futures trading and I'm devouring every resource I can find. Like all of you I've ran into useless material but Mr. Goslin's book is a true guiding light on this new path I'm on. I've read Trader Vic, Nicolas Darvas, Market Wizards and I'm now swimming in TA and seeing the "trend picture" more clearly. I had the honor to visit with Mr. Goslin on the phone Monday (July 4) and he was very encouraging. I plan on following his strategies in the near future, once I have a firm grasp of the indicators he advocates. I do have a question for all of you though -
Is there an easy program out there to key in the numbers that Chick mentions? I'm using Strategy Runner from globalfutures.com and it has MACD and Momentum indicators within the program - is this enough?
Thanks again!
Chris

 

[nine]

Welcome Chris,

The indicators (macd as well) are all based on simple moving averages (most macds are based on exponential mas).

My recommendation would be SierraChart (about $8 per month) with the DLLs I posted earlier in the thread and "free data" using the datasharks downloader (http://www.datasharks.biz/Downloader_Info.php) which costs about $50 once off.

You can also use Sierrachart with the free datafeed from Interactive Brokers for intraday trading.

Kiwi

 

[chump]

I would not get too hung up on the specific indicators mentioned..the author does in fairness say that ...find your own 'definitions' for trend in 3 timeframes that can be worked into to a style of trading that suits you ..otherwise you might be found trying to fit a square peg into a round hole ..personally I just found pleasing the systematic outlook that the author brought to his view of trading and his basic laws which though common sense are hardly ever explained has simply and clearly in most texts.

 

[JFK]

Spot on chump. Chick mentions any reliable indicator will work. Use a combination of different style indicators & whatever your comfortable with. Follow Chick’s 3 simple rules & techniques & it works.
I’ve found the best way is to keep it simple with indicators that I know how/what they are made up, add in some fundamentals. Do some back testing, paper trade it for a while. Then, once your confident that you’ve chosen the right method that fits your time frame, go for it.
I was stuck on an EOD strategy last year that was about 80% correct, but the loses were too big. After reading Chicks book it’s now 90% correct, with less trades & smaller loses (much smaller).
Now I’ve got time to workout my FX strategy for intra day & it’s looking good…

 

[Christrader]

Thanks. You guys are terrific. Can you tell me what you all consider the most important fundamentals to look at? I'll be trading commodity futures.

 

[Jyde]

I was stuck on an EOD strategy last year that was about 80% correct, but the loses were too big. After reading Chicks book it’s now 90% correct, with less trades & smaller loses (much smaller).
Now I’ve got time to workout my FX strategy for intra day & it’s looking good…

JFK, how long - approx. - did it take you to make the transition from 80% to 90%?
Reason I ask is that I still need to get more comfortable with his style of trading -or more accurately, find my own interpretation of it.

All the best...
CJ

 

[TGM]

Hello everyone,
I just wanted to say I'm a proud new member here. I've used many boards over the years and I can safely say that this is the most professional and courteous board I've ever encountered. I'm new to futures trading and I'm devouring every resource I can find. Like all of you I've ran into useless material but Mr. Goslin's book is a true guiding light on this new path I'm on. I've read Trader Vic, Nicolas Darvas, Market Wizards and I'm now swimming in TA and seeing the "trend picture" more clearly. I had the honor to visit with Mr. Goslin on the phone Monday (July 4) and he was very encouraging. I plan on following his strategies in the near future, once I have a firm grasp of the indicators he advocates. I do have a question for all of you though -
Is there an easy program out there to key in the numbers that Chick mentions? I'm using Strategy Runner from globalfutures.com and it has MACD and Momentum indicators within the program - is this enough?
Thanks again!
Chris

Sounds like you guys are doing well. I have seen many traders come and go. Usually, they are jumping from one method to the next. The 3 lines via Chick's book will work for anyone and it is NOT complicated.

Chris,

If you like talking to Chick and you want to use similar indicators. I would advise checking out Sierra Charts like Kiwi uses. Those indicators he did are virtually identical to the ones Chick uses. It is a cheap option with and IB feed you are all set.

all the best

TGM

 

[TGM]

Spot on chump. Chick mentions any reliable indicator will work. Use a combination of different style indicators & whatever your comfortable with. Follow Chick’s 3 simple rules & techniques & it works.
I’ve found the best way is to keep it simple with indicators that I know how/what they are made up, add in some fundamentals. Do some back testing, paper trade it for a while. Then, once your confident that you’ve chosen the right method that fits your time frame, go for it.
I was stuck on an EOD strategy last year that was about 80% correct, but the loses were too big. After reading Chicks book it’s now 90% correct, with less trades & smaller loses (much smaller).
Now I’ve got time to workout my FX strategy for intra day & it’s looking good…

What markets are you guys trading? Try anything really moving. Especially the energies.

 

[JFK]

Hi Jyde,
About 4 or 5 weeks. I never traded or got too involved with Chick’s method of using the SMR charts (having said that the last part of the book with all the SMR examples is worth another read). I already new my current method was working, just needed extra tweaks & a different approach with some fresh ideas. Chick’s book was an enormously help.

Chris, it all depends on your time frame & YOUR opinion on how YOU think the markets works.

 

[JFK]

What markets are you guys trading? Try anything really moving. Especially the energies.

Hi TGM,
I’m working on the main 3 US markets for EOD at present in the evening & GBPUSD in the morning as I still have a day job (that gets in the way sometimes, but not for long).
Are you talking US crude Oil? I've keep an eye on oil & gold since reading Chick's book, but don't have time to back test it yet.

 

[Jyde]

Hi Jyde,
About 4 or 5 weeks. I never traded or got too involved with Chick’s method of using the SMR charts (having said that the last part of the book with all the SMR examples is worth another read). I already new my current method was working, just needed extra tweaks & a different approach with some fresh ideas. Chick’s book was an enormously help.

Thanks. Do you find that you - in order to have better-odds entries - miss big chunks of beginning (i.e. after reversals) trends?

I am on eSignal myself and I did some custom indicators, based on a moving 49-days SMA, with MACD 3, 10, 16 (again using Simple MA as basis for it). I just added a few dots and differentials to show the 'beginning' of the trend and the SL - makes it easier on the eyes.
As long as you remember to use Simple for both MA and MACD, they are identical to the SMR indicators as far as I can see.