From California, USA, John is a veteran trader. With 35 years trading experience he has seen it all. John has an engineering background that led to his technical approach to trading ignoring fundamental analysis (with one important exception).
John strongly believes in cycles. He’d rather exit a trade when the cycle ends or a new one starts. He uses the MESA principle to make predictions about cycles in the market and trades one hundred percent automatically.
In the show John reveals:
- What is more appropriate than trading individual stocks
- The one thing he relies upon in his approach to the market
- The detail surrounding his unique trading style
- What important thing underpins the market and gives every trader an edge
Wow! @bobdesaedeleer:disqus, where is that info from? Norton told me that mesasoftware.com is a “known dangerous site.” Sometimes it just flags foreign sites, this one is out of Canada but I thought John was in California. Thoughts? Anyone else have any comments thoughts?
The illustration of John’s adapted strategy shows 14 trades over a period of about 6 months (7 short, 7 long). However a standard 9 period RSI (1D Bars) has only crossed the 20/80 RSI levels for the S&P 500 about 3 times in total over the last 18 months. Why the difference?
I suspect it’s because of the SuperSmoother filter he uses.
Hi Cam… it is the same with a 6 period super smoother applied too. The super smother (aka Butterworth filter) reduces noise so if anything is likely to reduce the number of spurious 20/80 crossovers. I was wondering whether John has used one of his adaptive RSI indicators, or an RSI fed through an inverse Fisher transform. I can’t get anywhere close to replicating the strategy as described – so must be missing something! Cheers….