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Hi Dimitris,
Sunday, September 09, 2001, 11:21:08 PM, you wrote:
DT> (I have somewhere saved Bill mail address, to let him know for
DT> this profitable ...Window)
^_-
DT> Look at NDX2 gif. It is a real crime to sell at A.(I think you
DT> search for something like that) Find a way to enjoy G.
Yes, A is a mistake. But the system I want to test would not sell at
A. However, it would have sold at intraday on B, since the low that
day took out the previous low. A very tight stop might kick you out
the same day, but it's hard for me to tell since I can't see the
price levels on this gif. Then, assuming you were kicked out the
same day, or the next day, C is not another entry. It is only a
setup, and it fails to trigger, because the low the next day fails to
take out the low of C. Same with E. It's a setup that fails to
trigger. G, however, is a setup that puts you in the next day. So,
there is at least one failure here for sure, after entry. But there
are several setups that get ignored, too. And no system works for
every trade, of course. And nothing can beat good money management.
You will see this kind of indicator failure from time to time across
almost all equities with this indicator, as it is really a
hair-trigger system, not for the undisciplined. If you can't take a
succession of very small losses (not saying you personally, Dimitris,
but anyone) don't even attempt to use this.
Here's a good challenge for you, Dimitris:
Apply the same principles of this system to a longer time frame, so
we can get calls like this at major swing points, instead of scalping
these small potatoes. (scalloping? /pun/) ^_- I want to apply
variations of this to weekly time frames. That is where more money
lives, and less visits to the drugstore for tranquilizers. ^^_^^
DT> Exploration with 20, 80 level, instead of 30, 70 did not worked
DT> better.
Yes, I long ago discarded 20, 80, as having much potential. The keys
are:
1) Price must validate the signal.
2) You have to employ tight stops on both sides. I would suggest
something in the neighborhood of 2 percent profit versus 1 percent
stop loss.
3) There may be other filters that will improve this. And they may
be quite simple. For example, on the NDX2.gif, you see the 3rd bar
is a setup that validates on the 4th bar. But it is a loser, and the
quicker you get out of it, the better. Closed on the low of the day
-- a doubtful keeper; closed well below the open -- another doubtful
sign. Somewhere during the course of that 4th day, if you take the
signal, you need to abandon ship. The ability to recognize, if not
code these situations, is critical to almost any trade system. Here,
you'd want out, I think, even if your stop wasn't triggered.
DT> One of the most interesting sharp tools !! Thank you very
DT> much for sharing. Dimitris Tsokakis
My pleasure. If I have more questions about getting this code the
way I want it, may I pester you?
Best,
Yuki
mailto:yukitaga@x...
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