Linda Bradford Raschke: Day Type, Taylor Trading, Trade Location

Ms. Rashcke’s 2 hour presentation of her trading style with question and answer period at the end of the presentation.

Several key things to take home from her presentation:

1. You cannot just watch a presentation and assume that you have learned the method,

"You have to make it your own."

2. Working out the statistics of a method yourself is important because that makes you understand the intricate details when the method works and when it doesn’t

3. On switching strategy based on different trading environments

There is no such thing as a universal method to be applied to all market conditions.

You have to be flexible like Ms. Raschke or stay out of the market environment where your mindset and method do not work well.

What Ms. Raschke says in the presentation is not something new. It is pretty much the same presentation she has done at major trading conferences and various exchanges for many years. If you are a newcomer in trading, it is a great introduction with many good ideas and tips to take home.


14 Replies to “Linda Bradford Raschke: Day Type, Taylor Trading, Trade Location”

  1. I have been tracking the 2 period ROC on the daily for a while now, just out of habit. I am not convinced that it has any major value. Perhaps I should just post them in the evening, and we can all see how it does.

  2. Yep. All indicators are, to a certain point. If it works for her, great.

    But what gets me is that she admits that the indicator should be put on hold if the price action suggests a trend.

    If indicators can be turned off and on if price action suggests it should, why not simply ditch the indicators and just use price action? Looks to me like a superfluous extra step in the already-exhausting process of decision making. Indeed, that is much of what makes trading hard–constant decision-making. I can only do so much before my reserves are gone.

    I’ll (try to) post the 2 day ROC, based on the Street Smarts book, in the evening until at least the New Year.

    Lawrence Chan

    I think 2-period ROC for LBR is like Linus’s blanket =)

  3. Going into Monday, bias was LONG in SPX (cash)

    Going into Tuesday, the bias is still long since market closed over 1768.70.

    If Tuesday’s close is less than 1786.01, then the long bias will be over.

  4. Tuesday’s close is less than 86.01 so Wednesday’s bias is DOWN.

    If Wednesday’s close (SPX) is higher than 1792.33, then Thursday’s bias will flip to UP. If Wednesday’s close is less than 1792.33, then bias for Thursday stays DOWN.

  5. Since TH close on the SPX was 1809.53, and that is higher than 1805.21, the bias for Friday is UP.

    If F’s close is less than 1839.15, then Monday’s bias will be DOWN.

  6. For those looking to go long on gold, we need a close on Friday above 1174.70 on the Feb contract.

    The system went short gold on Tuesday close, at 1230.40.

  7. Bias for Monday is down.

    If Monday’s SPX close is over 1818.49, then Tuesday’s bias will be UP.

    And I say whatever, since I will be away on vacation. Happy Holidays!

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