My brand new and FREE Special Report is hot off the press. It’s called “The Trading Manifesto”. Why the name, “The Trading Manifesto”? Because the contents of this report are a written declaration of my thoughts, passions and beliefs on how every self directed investor should approach the markets.
When I thought about what to write on this weeks Journal, I came up with idea of writing a mini review of “The Trading Manifesto” so you could gain an understanding of the contents. My hope is that this review will inspire you to download and more importantly read it.
Start now and download “The Trading Manifesto”.
When I wrote “The Trading Manifesto” I was playing to my strengths. I was in the best possible position to write such a report considering that my team and I had spent multiple man years researching markets and trading concepts for the benefit of my customers which were then compiled into a 230 page White Paper for their consumption. What I learnt throughout this process was profound in anyone’s terms. This may sound like hype but let me reassure you that it’s not. After researching the markets for the past 20 years, I must admit that I was a little shocked when I saw some of the results.
“The Trading Manifesto” discloses what I now believe to be the single most important ingredient you will ever need as an active investor. This ingredient can liberate you from your fear, uncertainly and doubts and allow you to build trust and consistency. This ingredient is called Exploratory Simulation.
The purpose of Exploratory Simulation is to determine:
- Whether your edge works or not and, if so, how well it works under different conditions
- When to engage the market and when not to
- An ideal range of position sizes, that is how much to invest in a trade
- How good the chances are of a trader achieving their Reward Objective and Risk Objective outlined in their Trading Plan
- How robust the edge is, that is, how well can it continue to work into the future and what its level of repeatability is with similar outcomes
Exploratory Simulation is used to get answers before we start trading.
“The Trading Manifesto” covers the major problems all investors face. Such as, how well a strategy works, what position sizing is too big or too small, what position size should be used to achieve their risk objective and reward objective and what are the boundaries for brokerage rates.
From reading “The Trading Manifesto” you will gain knowledge on how to:
- Determine whether a trading strategy is good enough or not
- How much to place in each trade
- Eliminate uncertainty
- Protect you from false promises
- Re-ignite your natural enthusiasm for trading
- End perfection once and for all
- Regain your confidence
- Simplify your approach
- Overcome fear
This is the first time I have written a Special Report like this and in hindsight – it’s long overdue. Because, as the markets continue to evolve, it becomes vital that you have the essential information you need and are able to adapt and evolve too!
“The Trading Manifesto” can liberate you from your fears and uncertainty while at the same time it can raise your trading confidence and trust in both your own execution and in your trading approach.
I would encourage any self directed investor who is managing their own funds in the market to read “The Trading Manifesto”.
Hi Gary,
In your manifesto, you state that the SPA3 mechanical system ‘is not a “secret” system… it is an “open book” transparent system…. “a glass box” system..’
This is not correct. All the technical indicators are documented, except for one critical technical indicator, the SIROC, which is the primary indicator used by SPA3.
I think it would be better if you were honest and up-front that SPA3 is a black-box system because the SIROC indicator is not disclosed.
A transparent system would be one that is totally disclosed and could be independently implemented and verified.
Potential clients could then decide for themselves whether this is important for them or not.
I am a user of SPA3 and agree with many of your ideas on the use and development of mechanical systems for systematic trading.
I also think that the on-going work that you and your team are doing to improve the system is exemplary.
Thanks,
Ern.
Response to Comment by Ern:
Thank you for your comments. You are correct that we don’t disclose our version of the SIROC. Whether this makes SPA3 a “black box” system or not is the question. I offer some other points for readers’ consideration on this question.
The SIROC indicator is available in other software packages including MetaStock and AmiBroker and I’m sure many others that I am not aware of. Indeed there are custom versions that have been offered, complete with code, on webpages and forums the world over. I haven’t tested all of them but can say that one or two are similar.
In fact, the SIROC now programmed into GPS is not the original SIROC. I still do NOT know the formula of the original SIROC. I created a revised and similar SIROC to the original just for GPS to handle the slowing down of EXTREME upward or downward price movement such that, unlike all other momentum indicators, our version of the SIROC does not start turning until the price actually turns. All other momentum indicators, including the original SIROC and MACD, will start turning when rate of change of price slows down which will always be before price changes direction, that is, far too early.
As critical as the SIROC is to SPA3, its edge is not dependent on our version of the SIROC indicator. Any smoothed indexed indicator plugged into SPA3’s concepts and logic would deliver an edge. This is evident from the fact that any SIROC setting from 5 3 to 55 21 will deliver an edge.
The important ingredients are SPA3’s concepts, logic, signal definition, risk management, money management and workflow. And of recent times the exploratory simulation. These are all fully disclosed in our documentation. The withholding of our version of the SIROC indicator is to ensure that somebody doesn’t create an exact copy of SPA3.
Every operational component of the system is visible to the user. So all signals, conditions and rules can be tested publicly.
Although our SIROC formula is not made public, the SIROC values themselves are visible to the user. As such the mechanics of how the SIROC is used can be legitimately tested by any third party, now or in the future.
With these points in mind I don’t see SPA3 as a “black box” system. Such a system would have too much hidden from the user and would be unable to be re-created by a third party. I see SPA3 more as a “glass box” system.
SPA3 could be re-created by another party with time, commitment and the necessary skills. However, it would be massively more cost & time effective to just use SPA3 as is and use their time and skills to create a brand new methodology for trading other instruments and / or markets.
Best Regards
Gary