"Trading Day by Day" by Chick Goslin

[Bigbusiness]

Marvellous to see such enthusiasm for a book.
How about a forecast someone ????

There will be snow on Christmas day. Is that the sort of forecast you want

I should spend some time reading the book but I have been too busy playing with the charts in the spreadsheet. The book mentions predicting the 49 sma for the next few days, to get in to a trade before it turns higher or lower. I think the method described seems a bit strange as I would have thought using a slightly shorter period sma would do the same thing.

I like the lower indicators but don't see the magic of the 49 sma, so I have made my own moving average using a method I picked up from another book.

It is amazing what can be done with excel. I am sure there are far worse charting packages than this selling for thousands. This is my latest effort with automatic buy and sell signals shown by the light and dark backgrounds. I have put arrows on it to show where it would be easy to trade after the signal.

 

[TGM]

Way to go Big Business! Are you bringing the data into Excel via DDE? If so from where?

Looks as good as mine!

 

[Bigbusiness]

I don't use DDE. I just update them by cutting and pasting the data. Doesn't take long but I wouldn't like to do it for too many markets.

 

[DESKPRO]

I don't use DDE. I just update them by cutting and pasting the data. Doesn't take long but I wouldn't like to do it for too many markets.

You can go to the www.smr.com site and get the charts daily. Also you can get the points awarded to each market eg bullish, bearish or neutral.... Goslin points for Pound was 2.5 (bullish) yesterday (so assume this is for Tuesdays market).. it fell by nearly 200 pips today

 

[JonnyT]

Ok, so how many points were made or lost on these trades in the pics?

I suspect a loss unless persuaded otherwise.

I have ordered the book BTW.

JonnyT

 

[TGM]

I forecast that you haven't read the book.....

Am I right ? Am I? Am I?

LOL......

Pat494,

The General has called you out! Swords or Pistols?

 

[TGM]

Ok, so how many points were made or lost on these trades in the pics?

I suspect a loss unless persuaded otherwise.

I have ordered the book BTW.

JonnyT

Jonny T,

I sure hope you ordered the book. You got the indicator off of me?!?!

 

[ottos]

Marvellous to see such enthusiasm for a book.
How about a forecast someone ????

According to my 3 line setup there should be reversals in QQQQ around 10:10 and 10:40 est on 10 min charts .

 

[Bigbusiness]

According to my 3 line setup there should be reversals in QQQQ around 10:10 and 10:40 est on 10 min charts .

I better start reading the book properly. I haven't found the section that deals with projected intra-day turns yet

 

[Panman]

IF anyone would like to buddy up on paltalk and trade the signals for ES,,,, I would like to do so.
Lets cut to the chase and make some money,,eh.
My email is [email protected]

PalTalk or Mirc ,, either one works for me.
Cheers,
Panman

 

[s-a]

I just want to say that the method outlined in Chicks book will require you to use YOUR personal computer (your brain). Some people might prefer a nice curve fitted system that costs several thousand dollars and works great on historical data - if this is the case, then I most certainly do not recommend this book if you fall into that category. I personally do not believe that you can trade this system automatically. There is too much other stuff that Chick does that goes beyond 3 simple lines. The lines are their as guidelines but we make money from price so that is of primary importance. I think the lines do an excellent job in formulating and supporting my trading decisions but there is more to it then just the 3 lines. Read the book, read Chicks commentary and note how he describes price action - outstanding stuff. Years and years of experience in those words, experience that IMHO just cannot be canned into an automagic system.

The pound was mentioned previously. Took a lovely trade off it last night on 60 min. Still short on 1/2 of the position. Taking quick profits because the daily pattern is still strongly crosscurrent.

HG

 

[Pat494]

Still awaiting your report General ???

As to your forecast perhaps if I say for the Dj "Status - Bullish. Trend up, ML positive, SL neutral etc" will give a clue as to whether I have read it.

I seem to have answered my own question

 

[The General]

My report is simple....you tell me what u think and I rule that out as a possibility ! (no offence meant)...

 

[Holmes]

Trading Day by Day review

In contrast with all the glowing reports I urge caution. Here a contrasting view to those.

This book is a "one note song", a single setup.

Once the "masses" start "discovering" this "natural law method" then it will start getting faked out a lot. Have seen this with the "80% winners setups" in the CCI and the same will happen here. ( And it will have too if you think about, it is another "natural law" )

There is value in reading about how he manages his trades, where he is getting into situations where he should not have been in the first place. And how he then manages to reason himself to stay in the trade while the signs are clearly that he should have been out a long time ago. In that respect it is valuable.

It helped me consolidating some view that I have on using multiple timeframes (he does not talk about that as such, but he achieves it through the indicators)

Do not misunderstand me: I am glad I got the book. Just be aware that this book is not going to give you the "holy grail".

Sherlock

Tao te Ching, tetragram 56 (written thousands of years ago)

Those who know do not speak
Those who speak do not know
Block the passages
Close the door
Blunt the sharpness
Untie the tangles
Harmonize with the brightness
Identify with the way of the world

 

[Roberto]

This book is a "one note song", a single setup.

With respect, I don't agree at all. I understand entirely what you're getting at, but I think the book contains _far_ more than just that. And even "just that" amounts to a trend-following system across a huge range of markets, anyway. Happy Christmas!

 

[Holmes]

With respect, I don't agree at all. I understand entirely what you're getting at, but I think the book contains _far_ more than just that. And even "just that" amounts to a
trend-following system across a huge range of markets, anyway. Happy Christmas!

Let us agree to disagree. No hard feelings there, after all it is just my 2 cents worth.

May I suggest you take a look on how all the big funds have doing over the last few years who are fervent trend followers?

Sherlock

 

[MartinD]

Once the "masses" start "discovering" this "natural law method" then it will start getting faked out a lot. Have seen this with the "80% winners setups" in the CCI and the same will happen here. ( And it will have too if you think about, it is another "natural law" )

I disagree with the above. We're not talking about a method of picking reversals here, quite the opposite. The more people (the masses) that trade with the trend, the more established the trend becomes. A self fulfilling prophesy.

 

[Holmes]

I disagree with the above. We're not talking about a method of picking reversals here, quite the opposite. The more people (the masses) that trade with the trend, the more established the trend becomes. A self fulfilling prophesy.

Hi MartinD

Let me say that I have heard (and seen) it all before. After all Chick's method is nothing much more than an entry method on the 50 MA. Same as that the ZLR (in the CCI) is an entry method on the 34 EMA. And I know what happened to the CCI setup.

No hard feelings, I am just urging some caution and intelligent application here. I am not wanting to rubbish the book, and I do not advice against buying it.

I have also noticed that SMR is having a lot more setup information than that is in this book. I feel that there could have been mentioned a lot more of "gotcha's" and that it is overly simplified.

I am glad that I got the book. It gave a lot of insight in the psychological aspects of how to manage a trade (or not).

Sherlock

Victory awaits those who have everything in order - people call that luck
Defeat is certain for those who have forgotten to take the necessary precautions in time - people call that bad luck

Roald Amundsen (1927)

 

[JonnyT]

I still have yet to see any viable backtest for the setup.

My books winging its way from the States.

BTW Global-Investor say they have them in stock, then even emailed me to say it had been despatched yet they don't have any!

 

[TGM]

Holmes,

I have been around a while as well. Saying that Chick Gosling's method is an entry method based on the 49 day moving average is flawed. If anything the entry method is based on the ML cycle.

There are NO GOTCHAS in the book. Yes, it is oversimplified. It is very simple and elegant approach with no fluff. If you make money in the markets. You are in concurrent moves. Whether you recognised that or not is a whole different discussion.

Furthermore, timing the ML cycle based on his taking off high and low numbers is original. I have been an SMR subscriber for 10 years. There are many differences between their system and the 3 lines Mr Goslin is teaching.

Last but not least, the best part of the book is how to take profits based on where you as a percentage of margin from the line entry. That is extremely original. Most of the garbage books out there tell you to let your profits run??!?! Run to where? He at least gives us guidelines and not old trading cliches.

One last point, the book is part art and part science. There are many little nuggets and tricks in there that most people do not pick up the first time through (some folks never pick them up). As far as everyone jumping in the same signals and screwing up the markets or ruining the natural laws of the market!! LOL............ Come on now! That is amateur talk.