Go to Jeff Salisbury LWGate Home Page.From: "Katherine Malm" <kmalm@earthlink.net>
Subject: Re: [CANSLIM] Why Professionals go astray
Date: Wed, 4 Sep 2002 09:21:38 -0500
Previous Article (by Subject): Re: [CANSLIM] Why Professionals go astray "Tom Worley"
Top of Thread: Re: [CANSLIM] Why Professionals go astray Cwyndham@aol.com
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Wyndy,
We don't "hype" on this list because we are not SELLING anything. We are =
simply individuals who are sharing ideas. We are under no obligation to =
share with you our personal results, nor are we under obligation to =
"prove" to you the value of CANSLIM. We have given you our point of view =
and I have forwarded data to you in answer to your questions, despite =
your offensive and accusatory tone since arriving.=20
I'll remind you of what I said in an earlier post:
"What can and has been done is to take a rule-based interpretation of =
CANSLIM and then enter/exit only on quantifiable elements. When this is =
done, one can measure the performance (and it's quite good, by the way). =
However, every time I show a study that did this to someone, they find =
some reason to doubt the results. There's just no pleasing some people. =
They don't believe it if you *don't* show statistics, and when you *do* =
show them statistics, they say that "statistics lie."
When I posted the study, this was your reply:
"OH! The AAII data is not CANSLIM traded. They don't buy or sell =
according to chart =
formations/patterns/breakouts/volume/handles/cups/saucers or anything =
else. I have been an AAII member for 3 years, go check the way they =
trade. Hope no one uses their CANSLIM data to substantiate the use of =
CANSLIM."
First, several members here have reminded you that there are subjective =
entry/exit/selection criteria in CANSLIM. As they are interpretive, you =
cannot develop a consistent set of metrics to measure "CANSLIM =
performance", just as you can't measure "growth" vs "value" strategies. =
The guidelines are simply too broad. You could measure, for example, =
Louis Navalier's blue chip growth strategy, or Warren Buffet's long term =
value strategy, or Gary B. Smith's trading service strategy. You can =
measure your own personal performance based on the specific rules which =
you set for yourself based on CANSLIM criteria. What you cannot do is =
measure a category of investing styles, other than in the broadest =
terms, as was done in the AAII study. You can only meaningfully measure =
the performance of an individual. Backtest the heck out of a set of =
criteria and/or rules if you wish, measure your own performance if you =
wish, but you will not find two individuals practicing CANSLIM who trade =
using exactly the same set of rules. Second, there have been statistical =
studies done on the success/failure rates of various chart patterns. =
Among them, you can read "Encyclopedia of Chart Patterns" by Thomas =
Bulkowski. He does not give opinions, but gives statistical results. I =
doubt you will find comfort in this study, either, given your reaction =
to the AAII study. It sounds like you want numbers, but don't believe =
numbers when given. Third and last, it's clear you've already made a =
decision as to the value of CANSLIM. If you don't find it useful, then =
you have joined the wrong list.
Katherine
----- Original Message -----=20
From: Cwyndham@aol.com=20
To: canslim@lists.xmission.com=20
Sent: Wednesday, September 04, 2002 8:48 AM
Subject: Re: [CANSLIM] Why Professionals go astray
In a message dated 9/3/2002 9:57:39 PM Central Daylight Time, =
stkguru@bellsouth.net writes:
Wyndy, I will be interested in the response to your registered =
letter, assuming there is one. Maybe your critical attitude will elicit =
an answer
Tom casting doubt on my credibility is juvenile. You have your nerve =
saying
"assuming there is one." I joined this group to get data not hype or =
insults.=20
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<META http-equiv=3DContent-Type content=3D"text/html; =
charset=3Diso-8859-1">
<META content=3D"MSHTML 6.00.2716.2200" name=3DGENERATOR>
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<BODY bgColor=3D#ffffff>
<DIV>Wyndy,</DIV>
<DIV> </DIV>
<DIV>We don't "hype" on this list because we are not SELLING anything. =
We are=20
simply individuals who are sharing ideas. We are under no obligation to =
share=20
with you our personal results, nor are we under obligation to "prove" to =
you the=20
value of CANSLIM. We have given you our point of view and I have =
forwarded data=20
to you in answer to your questions, despite your offensive and =
accusatory tone=20
since arriving. </DIV>
<DIV> </DIV>
<DIV>I'll remind you of what I said in an earlier post:</DIV>
<DIV>"What can and has been done is to take a rule-based interpretation =
of=20
CANSLIM and then enter/exit only on quantifiable elements. When this is =
done,=20
one can measure the performance (and it's quite good, by the way). =
However,=20
every time I show a study that did this to someone, they find some =
reason to=20
doubt the results. There's just no pleasing some people. They don't =
believe it=20
if you *don't* show statistics, and when you *do* show them statistics, =
they say=20
that "statistics lie."</DIV>
<DIV> </DIV>
<DIV>When I posted the study, this was your reply:</DIV>
<DIV>"<FONT face=3DArial size=3D2>OH! The AAII data is not CANSLIM =
traded. They=20
don't buy or sell according to chart=20
formations/patterns/breakouts/volume/handles/cups/saucers or anything =
else. I=20
have been an AAII member for 3 years, go check the way they trade. Hope =
no one=20
uses their CANSLIM data to substantiate the use of =
CANSLIM."</FONT></DIV>
<DIV><FONT face=3DArial size=3D2></FONT> </DIV>
<DIV><FONT face=3DArial size=3D2><FONT face=3D"Times New Roman" =
size=3D3>First, several=20
members here have reminded you that there are subjective =
entry/exit/selection=20
criteria in CANSLIM. As they are interpretive, you cannot develop a =
consistent=20
set of metrics to measure "CANSLIM performance", just as you can't =
measure=20
"growth" vs "value" strategies. The guidelines are simply too broad. You =
could=20
measure, for example, Louis Navalier's blue chip growth strategy, or =
Warren=20
Buffet's long term value strategy, or Gary B. Smith's trading service =
strategy.=20
You can measure your own personal performance based on the specific =
rules which=20
you set for yourself based on CANSLIM criteria. What you cannot do is =
measure a=20
category of investing styles, other than in the broadest terms, as was =
done in=20
the AAII study. <STRONG>You can only meaningfully measure the =
performance of an=20
<EM>individual</EM></STRONG>. Backtest the heck out of a set of criteria =
and/or=20
rules if you wish, measure your own performance if you wish, but you =
will not=20
find two individuals practicing CANSLIM who trade using =
exactly the=20
same set of rules. Second, there have been statistical studies done on =
the=20
success/failure rates of various chart patterns. Among them, you can =
read=20
"Encyclopedia of Chart Patterns" by Thomas Bulkowski. He does not give =
opinions,=20
but gives statistical results.</FONT> <FONT face=3D"Times New Roman" =
size=3D3>I=20
doubt you will find comfort in this study, either</FONT></FONT>, given =
your=20
reaction to the AAII study. It sounds like you want numbers, but don't =
believe=20
numbers when given. Third and last, it's clear you've already made a =
decision as=20
to the value of CANSLIM. If you don't find it useful, then you have =
joined the=20
wrong list.</DIV>
<DIV> </DIV>
<DIV>Katherine</DIV>
<DIV> </DIV>
<BLOCKQUOTE=20
style=3D"PADDING-RIGHT: 0px; PADDING-LEFT: 5px; MARGIN-LEFT: 5px; =
BORDER-LEFT: #000000 2px solid; MARGIN-RIGHT: 0px">
<DIV style=3D"FONT: 10pt arial">----- Original Message ----- </DIV>
<DIV=20
style=3D"BACKGROUND: #e4e4e4; FONT: 10pt arial; font-color: =
black"><B>From:</B>=20
<A title=3DCwyndham@aol.com =
href=3D"mailto:Cwyndham@aol.com">Cwyndham@aol.com</A>=20
</DIV>
<DIV style=3D"FONT: 10pt arial"><B>To:</B> <A =
title=3Dcanslim@lists.xmission.com=20
=
href=3D"mailto:canslim@lists.xmission.com">canslim@lists.xmission.com</A>=
</DIV>
<DIV style=3D"FONT: 10pt arial"><B>Sent:</B> Wednesday, September 04, =
2002 8:48=20
AM</DIV>
<DIV style=3D"FONT: 10pt arial"><B>Subject:</B> Re: [CANSLIM] Why =
Professionals=20
go astray</DIV>
<DIV><BR></DIV><FONT face=3Darial,helvetica><FONT lang=3D0 =
face=3DArial size=3D2=20
FAMILY=3D"SANSSERIF">In a message dated 9/3/2002 9:57:39 PM Central =
Daylight=20
Time, <A =
href=3D"mailto:stkguru@bellsouth.net">stkguru@bellsouth.net</A>=20
writes:<BR>
<BLOCKQUOTE=20
style=3D"PADDING-LEFT: 5px; MARGIN-LEFT: 5px; BORDER-LEFT: #0000ff 2px =
solid; MARGIN-RIGHT: 0px"=20
TYPE=3D"CITE"><BR><BR>Wyndy, I will be interested in the response to =
your=20
registered letter, assuming there is one. Maybe your critical =
attitude will=20
elicit an answer<BR></BLOCKQUOTE><BR><BR>Tom casting doubt on my =
credibility=20
is juvenile. You have your nerve saying<BR>"assuming there is one." I =
joined=20
this group to get data not hype or insults.=20
</FONT></FONT></BLOCKQUOTE></BODY></HTML>
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Previous Article (by Subject): Re: [CANSLIM] Why Professionals go astray "Tom Worley"
Top of Thread: Re: [CANSLIM] Why Professionals go astray Cwyndham@aol.com
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