I run into your thread today and have enjoy reading it a lot.
I do also trade based on statistics on the Forex markets (rules based on price action, then programmed to and backtested). I trade some strategies on certain days, I open and close with times/price combination, and have rather large stops.
I like how you are now trading only certain days, that have a higher probability of being a winner.
However, what I like most about your system is that you follow every rule. I have found that many times the "best looking trades" in my system, dont work out, and some "ugly" trades do. So that always helps remind me of " just follow my systems rules"
I also like that you have big stops, to allow the trade to develop. Over the years, I have found that to be a critical element to trading (specially a system based trading method).
Congratulations on your positive results, Thank You for sharing, and I will follow your thread with great interest
Thanks for your input - yes - stops are very important.
In my system a stop is only to prevent a desaster drawdown.
Every stop in a system has to be tested out depending on the volatility of the instrument.
Here on the Dax 30 points (750 EUR which is quite much) has been statistically a good
place to end a trade that is really going false - no matter the time passing. On the other
hand the trades that are not stopped out need to be with higher reward (monthly) to
make our overall gain positive
As my system does not distinguish between trending days or range days, a stop has to cover ALL occurences. Therefore one has to test back enough days to find the best place
for the stop after one enters a trade. Positive outcome means that the homework was
Even we know that a system does NOT work under any circumstances and may been thrown
out by the market - that one day trading has now a very long positive curve. I assume that
the behaviour of the mass of market participants does not really change over time:
this means I am counting on daily and weekly participants who are entering markets at
certain hours regarding the development of price and exit accordingly.
Very true - traded only after my signals today...
Looks like the market had no more breath to kill that 8,1K
before a bigger plunge.
Taking that signal to prepare for some coming short days now
As announced - a triple witch week has always some surprises.
Have a great weekend
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