So in a sense, this part of your system is discretionary. There is no rule for it, sometimes 2 ticks will be too wide and sometimes it will be fine. The ZigZag lines on your 377 tick chart and mine look very different eventhough the settings are the ones you state in your trading rules, it's probably a data feed issue.
Thanks Charles - 5 ticks is exactly what I got as well.
Yes, the market is choppy the last couple days for sure. We can't complain too much after that big day on the 3rd but that's the nature of trend trading - as you have driven home on this thread, waiting for the right market conditions is the key to making a system like yours work. I've been following it and practicing your system specifically to practice patience and waiting for the right conditions to develop. The clear rules make it very obvious to me when I have taken a trade outside the parameters and so I have an objective measure of my patience and discipline.
I also find it helpful to compare the trades taken with your method vs the patterns I usually trade on the charts I watch. Comparing where your system enters and exits gives me insight into my own methods - seeing entries I might not have taken or filtering out trades I might have entered on.
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Charles - I wonder if you have statistics on how many trades your system generates per week on average? I'm sure you have an estimate of the same but I wonder what your own weekly trade statistics have been on average over a period of weeks or months.
thanks - yes, allowing the market to determine how many trades you take per day or per week is so important. Overtrading has been one of my own weaknesses (and I know this is not a unique problem) and following a more specific set of trading rules has been a good model for me. Watching myself and how I react to the signals generated or not generated by your method (and of course the times that I "fudge" the trading method as an excuse to get into the market) has been very instructive. I think following another's method is uniquely useful for this - it is much easier (and more insidious) to fudge one's own methods without being quite as aware of it. There is self-discipline in action but also in "seeing" correctly - sometimes the latter is more tricky to get right.
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