last week i became aware about this excellent Thread. Just wanted to thank you and let you know this thread has slightly changed my perspective on trading systems.
When i started short term trading forex i began with a similar system consisting basically of some moving averages and a supertrend. However i was not successful with that system so i did basically skip it.
Looking at this thread (and i read it from the beginning) i was quite curious to see how you handle such a system and whether you gonna succeed. And you did
I appreciate sharing all ups and downs in this thread and showing how you are getting a grip on it.
I like how you emphasize whether good market conditions are in place which are needed to make this trading approach successful. Well, some might say: This clear and simple, and i did know that but now i feel i do understand now
Thanks for that
The following user says Thank You to MichaelH for this post:
The last week or so, along with my live CL trading...I have been conducting a SIM experiment on Cl as well.
After back testing almost a year of charts..plus many days of Replay trades...I have seen so many days of much larger trending moves of 100-200 ticks or more. Plus I watched my recorded sessions enough to know what the conditions often look like when these moves take place. So, I have been going for much bigger targets in my SIM experiment and taking some Rampage (indicator) signals on a 1 minute chart and riding out trades for very large moves. So far, I am liking the results. I am having several days already of making over 100 ticks. Yes, it's only SIM..however I am letting the signals get me out or my target is hit. So, it's nothing I wouldn't be able to replicate live.
I think I may be taking targets often that are way too small. I often allow countertrend noise to shake me out of trades that have huge potential. Now, it may be too soon to tell...but if in a month I keep getting good results..I may start going for bigger targets in my live trades as well.. If not, I can still get good results from what I am doing now.
I don't like to change things if I am seeing some consistency,,,however I do have days where I hit my max drawdown and it can become very challenging to hit my weekly goal. At this point, it is just an experiment..but I am already seeing some benefit from managing larger target trades. Also, I am still keeping my entries low risk. The main difference is my minimum target is 50 ticks. I either get 50 or the signal change(or EMA breach) takes me out. Some I am letting go 100 ticks or a signal change. It's very interesting because some trades seem to stall at 20 ticks. They will just sit there for a long time and do nothing...and then suddenly take off and go 100 ticks. I just stay in until the software gets me out. My stops are generally never more than 15 ticks..so the risk/reward on some of these trades is excellent. But I figure if I can nail several 50 tick winners along with a few 100 tick moves (some signals have given 300 tick moves!) I could be looking at some weeks making close to 200 ticks. This would really take me to another level.
I will report the results of the SIM trades in about a month. I will, of course continue live trading using my same method.
Failure is not an option
The following 9 users say Thank You to lancelottrader for this post:
If you're trading multiple lots already, just convert one or two of them into runners....take one off at +50 and let the other go until it either hits 100+ or an opposite signal....You should like the results.....not as good as being all in all out at +100 but still, if you grab one of those a week along with 2-3 50 tick trades, along with the profit from the first scale out, you should be doing good!!!
Congrats on making it....it was a long haul but you made it....
Simplicity is the ultimate sophistication, Leonardo da Vinci
Most people chose unhappiness over uncertainty, Tim Ferris
The following 5 users say Thank You to PandaWarrior for this post: