this is today's hotcomm chat:
{xxxxx} zlr's suck
{xxxxx} zlr's have been terrible since june 2003 or maybe it was february 2004, i need to check my stat sheet again
{xxxxx} I'm getting a 3% win rate on ZLRs
{xxxxx} they suck
{xxxxx} Is that with the sidewinder?
{xxxxx} No. My win rate is 2.7% with ZLRs with the SW
{xxxxx} Thanks. That sucks.
{xxxxx} zlr's suck
{xxxxx} the sidewinder sucks too
{xxxxx} i agree
{woodie} zlr with sw or gb 34 work...it's people who don't use them right
{xxxxx} gm woodie!
{xxxxx} hi woodie!
{xxxxx} gm woodie!
{xxxxx} hi woodie!
{woodie} here's this morning's YM chart: zlr - winner, zlr - winner, zlr - winner, zlr - winner
{woodie} just basic cci, 38 trades, zero losers, what's the problem?
{woodie} zlrs work, everybody see that?
{xxxxx} y
{xxxxx} y
{xxxxx} y
{xxxxx} y
{xxxxx} y
{xxxxx} i agree
{xxxxx} woodie's right
{xxxxx} you da man, woodie
{xxxxx} thanks woodie!!
posted by Fearless @ 10:14 AM
4 comments
4 Comments:
ooooooh....I knew you would pick that conversation up.
There is a rule on making ZLRs work it seems everyone misses.......YOU NEED A TRENDING MARKET to trade them.....HELLO
Hello anon 102
If you have a trending market, you sure would not need a 'zlr'. If the market is trending, you can trade it backwards, forwards and upside down and still make it by the end of the day.
So basically you therefore need to have a trending or non trending indicator.
As the post implies, zlr sucks and no amount of hogwash can cover up that simple fact. Trade it at your peril if you want to help the pocket book of your broker.
nothing fabricated about these comments:
09:08:48 {yoga_ga} having backtested zlr, and various other patterns using TS. I've found applying the same rule over time losses money. I've tried about 20 different variations and various optimizable values and still could not find a winning combination. Seems like there is a lot goes inside the head that helps determine if a trade is a winner or losser.
09:20:05 {JoAnne} Agree, biggs, but, to be honest, on my stats for ZLRs' on 5m YM, it's not really even close. for example, using stops set at prior bar minus a tick, on the last 233 ZLRs on 5m YM I have tracked, it gets a 31% win rate, and a 1.4:1 AvgWinSize/AvgLossSize ... GB's table will tell you that that looses money over the long haul.
09:08:41 {gb007} yoga agree. zlr's are profitable only when trading with a trend
09:24:30 {gb007} biggs i think mplay made an important point on changing markets. e.g. joanne just posted that zlr's are running 32% on ym. a year ago when the markets were trending we were getting around 75%. understanding chop vs. trend is critical
09:39:13 {woodie} zlr with sw or gb 34 work...its people who don't use them
09:34:38 {JoAnne} BIGGS: fwiw, my stats on the ZLR (31% win rate) is based only on those with the SW
(you know this is authentic WCCI by the repeated misspelling of the word "loser".)
ZLRs are a very difficult way to trade the cci. You can be subjected to a lot of whipsaws. I made that clear in my last "CCI Tips and Nuances" :)
Once I made my position clear on the ZLR, my "CCI Tips and Nuances" was removed from talkstox.
The best trend indicator is often "after the fact" :)
The market can go sideways on a "drop of a dime".
The Market goes sideways 85% of the time. This alone is why a lot of traders lose money with ZLRs.
Not to be cute here, but on strong uptrends, buying works just fine.
On strong downtrends, selling works just fine :)
No need for ZLRs on strong trends.
Goinglite
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