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Hi
Great post!.
I couldn't agree more ...
The whole thing about stops, trailing stops and reentry etc... in a
system is bothering me for a while now.
Eye balling charts with whatever signals in it shows that a lot of
times a signal is the "wrong" place.
So I just wanted to see with numbers and simulated trades if there is
a significant difference between a no reentry system and reentry
system.
Also we all read and heard that "If the reasons to enter a trade are
still in place one should reenter even after stopped out"
Now doing that in AB is not easy for me.
Also would have liked to do it with a system which generates RANDOM
entries. - not a "canned" one.
I do not even know if this is possible or not, I know thare is a
Random function but I do not even know where to start and how to use
it.
Also it seem to me that I may need to use 2 separate systems, one for
buy/sell and one for short/cover aince
I'm really confused (I just start reading about AFL) how AFL really
works.
I'm sure it can be done but I hoped I can short my learning curve if
someone already tried something at least similar.
thanks
adrian
PS
I'll know if is dead end road after I see the "reports" of such an
approach :)
So far rentry is the way to go!
--- In amibroker@xxxxxxxxxxxxxxx, "slyde88 <csoderback@xxxx>"
<csoderback@xxxx> wrote:
> > Hi
> > I'm having a tough time coding a reentry after a protective stop
> was
> > triggered.
> > Lets assume that my Buy signal was too early or the price moved
> > against me ( I was stopped out)but then moved in my direction
> > however the 'system' already fired and I do not get a new buy.
> > I would like to reneter once my current price > initial BuyPrice
>
> snip
>
>
> > thanks
> > adrian
> >
> > Any input greatly appreciated
>
> What you have run into is the reality of trading. Stock action
> is not a math function and entirely predictable. If you set the
> system to only make one trade a day you can easily get stopped out
> at the open and miss a good run during the day. Also, you can
> be stopped out by the price just bouncing around in normal
> trading. The same goes for buys and sells, The price action
> can just bounce around the buy price giving many buys or sells.
>
> If you code a crossover system, the system will fire if you go
> just 1 cent over the buy price, the same for a sell. This is a
> hair trigger and one would never trade this way. Then again
> there can be a conflict between the stop and the sell or buy signal
> and which one takes precedent. This happens with trailing stops.
>
> Another conflict is setting tight stops on entering a trade, they
> are fine if the stop has predicable action, but if it bounces
> around then you will just get stopped out and you will always
> loose money.
>
> The book writers, authors and newpaper owners all have what they
> claim are iron clad rules which you should follow and you can't
> loose. The only problem is they don't work out very well in real
> trading.
>
> You can code just about anything in AB and that is not my point.
> Everybody has their own trading style and AB should be used as
> a tool to enhance your style. Rather than follow some preconcieved
> system think how you would trade, where would you buy and where
> would you sell and why. Once you have decided on your rules then
> you can program these into AB. This isn't easy and few are
successful
> at making a really good system, if they have a good system they
> will trade it and not try to sell books with the system, for the
> reason if many use the system the system will fail.
>
> I know this is a kind of long diatribe, but it should be given
> thought so you don't keep following dead end roads. Your question
> was how do I re-enter a trade after being stopped out, maybe it
> should be do I really want to re-enter the trade after being
> stopped out, this is the tough decision.
>
> Cliff s
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