My background is as a Spread Trader (no charts) and been trading 'outrights' for a year. Reading Chuck LeBau book and he esseentially has a Parabolic Trading System that has the following rules:
-Use a 14 day DMI and ADX
-Do Not initiate any trades when ADX is downward
-When ADX begins moving upward, enter in the direction of the DMI...only if the Parabolic agrees. If the Parabolic does not agree...wait until it does.
-Once a trade is entered use the Parabolic as a stop to exit
My goal is to reduce the frequency of my trading to 3 to 4 trades a day. I am just getting started with back testing etc...Was wondering if many members trade this type of system and what their experience has been. I have attached a chart of the NQ from yesterday that shows where i would have traded.