Exploiting Price Data Variations in Everyday Trading (Part 5)

10/10/2008 10:15 am EST


Timothy Morge

President, MarketGeometry.com

Let me readjust the data on the second charting package, giving the phantom tick the same high as on the original charting package:


Here’s the second charting package with the “phantom tick” added back in. Now you can see the Energy Points are right back where we entered and the two charts match again.

What’s the bottom line? Data is not clean, it is not exact and there is no “Holy Grail” of data. As a professional trader that trades billions of dollars at a time, I do the best I can with the data in front of me. I don’t spend time worrying over each tick. Instead, I trust that my methodology, which has been around for nearly 100 years, my surgeon-like money management, and my reliance on high risk:reward ratios will allow me to make money the majority of the time, even when “phantom ticks” appear. I do the best with the tools I have. That’s all anyone in any profession can do.

I hope this example of data integrity has been interesting and shown you that sometimes you can trade on something that never really happened and still make money if you’ve mastered yourself and your tools.


Timothy Morge


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