It has been of great concern to me as to why trading looks so difficult whereas trading using a group of rules has always given me better results to consistently make money. Perhaps our intuition has been telling us something that we've been unable to quantify. My search has been for that factor and I shall start testing my hypothesis, as of today.

To begin, I will take a trend riding system such as Vegas 1hr tunnel and apply my hypothesis to it to see whether it's possibile to increase operation efficiency.

The best drawback to this as another fad riding system is the inefficiencies caused by whipsaws. Generally, to prevent these, we attempt to create many filters all in an attempt. I feel the holy grail has always been right under our noses and is. I do not know what kind of impact it's going to have if this proves positive, but I do not care. I want to see everyone do well, myself included and when I contribute one inkling of everything I've learned from all your great threads and shared understanding, It will make me feel good that I've been able to contribute to all your amazing efforts. So please, if any of you have any guie or suggestions opinions or jokes, it's all welcome. No holds barred, lets just be sure we stick to the stage.

My idea of this holy grail starts with something we've all read time and time again. 95% of all traders lose. Some make their money out of skill, while others reap the spreads. In any event, I feel that from this statistic we could plant the seed of this tree which will grow each and each of our mechanical methods into money making machines.

From that statistic I started to look at any random system I had programed in my tradestation and that which I had noticed was that many of these excluding commission, were only around crack. Once commission(spread) was inserted to functionality, it seemed as though these systems were a complete waste. I wondered was it that most basically broke and how can this information help me. If 95% drop it makes sense. Most that follow the machine will lose. But, should also lose. If any one side of the equity curve were to increase without stopping(excluding the spread), then threre would exist a bunch of traders that are constantly winning. We know this cannot happen.

Intuitivelywe seem to describe markets which are trending versus ranging with all these indiors, but what I propose is quite different and could be quantified. My idea would be to quantify our system functionality, excluding spread concerning an oscillator. We know that when too much money is being made by our system, it's destined to soon fail. When it's losing too much cash (excluding spread) it's destined to begin performing better.

I shall create bollinger bands for platform functionality to quantify when our platform is x ray standard deviations away from a mean equity line and these levels will pinpoint when we should be trading the machine and when we ought to be evaporating it. To say that one system will prove this is optimistic, however, once we create a portfolio of fad riding systems and a few of ranging systems, it should give us a much better idea as to when to journey trends or range transaction.

Other factors have to be taken into consideration and that's drawdown and average profit per transaction. We don't wish to work on such a small time period whereas filtering out alot of bad trades will give us with little gains after the spread is taken under account. The machine will have large fluctuations around a mean equity which will allow us to ride the machine for gains in the directions. Intuitively I believe that systems which are always in the market will be better for this experiment, although after testing we may attempt to find ways although I don't know if theoretically it is potential.

I will initially work with Vegas 1hr tunnel. When this is the perfect method to check, I don't know, but it's a start. If any of you have an always in the market system which yields gains as well as huge declines, and you feel as though it fits my qualifiions for a method, please allow me to know and I will add it. The goal will be to combine a myriad of systems into an indior which will tell us when is a good time and when is a good time to fade it. Recall systems will crack excluding the spread, too many and too big of a gain men and women make money, many and too big of a reduction men and women make money. We find optimum times when to exchange and when to fade these systems and a lot of money is made by us.

I feel that down deep, great optional traders, though they might believe it is something else( gut feeling or anything they wish to call it), all have a pure perception of this idea and act on it intuitively. Let's us mechanical traders figure this out so that we may level the playing field. Then what happens next I don't know.