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[amibroker] Re: Managing drawdowns (was % channels)



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I trade the FOREX market which closes at 5 P.M. EST for that session 
and opens at the same time, i.e., 5 P.M. EST.  When I download the 
data, the open price is always the same as the previous sessions 
close price, as it should be ideally, because FOREX is not 
interuppted by evening/overnight lull in trading.  Hence, I use an 
open price which is the same as the close price of the previous 
sessions close price.  I am not fully aware what this does to the 
Candle patterns, but I would think it really does not matter...

But again, it should not matter, whether you are trading FOREX or 
stocks or Bonds or Futures etc., If you always place an limit/stop 
order to trade at previous sessions close price, instead of placing a 
MOO order, the chances are that you will get a better price, because 
the market may open higher and then move down to finish you.  This 
avoides the practice of chasing the market.  You might say that if 
you do this, you might miss the move, yes you might, but it is better 
than taking a loss...

rgds, Pal

--- In amibroker@xxxxxxxxxxxxxxx, "CedarCreekTrading" <kernish@xxxx> 
wrote:
> Pal,
> 
> Your emails spurred me to post a mechanical, open-coded approach to 
the ETF's.  Please post a chart of anything you trade.  I would like 
to understand what you are doing or what you are trying to convince 
us that you are doing.  I like pictures.  Frankly, I don't understand 
your posts.  Each additional writing leaves me more confused,  
especially, your asumption that today's close will somehow be the 
same as tomorrow's opening.  I've actually had people ask me to 
excute at the high of the day or the low of the day...but, I've never 
had a request to execute at yesterday's close.  
> 
> Take care,
> 
> Steve
>   ----- Original Message ----- 
>   From: palsanand 
>   To: amibroker@xxxxxxxxxxxxxxx 
>   Sent: Thursday, October 30, 2003 7:22 PM
>   Subject: [amibroker] Re: Managing drawdowns (was % channels)
> 
> 
>   I Detect a signal with my primary trading system then Verify it 
with 
>   OB/OS conditions (secondary trading systems) before it becomes a 
>   verified (validated) signal.  Additionally I also Interpret it 
using 
>   volatality to determine as to whether it is a trend-change 
pullback 
>   or a breakout.  In my view Verification is more difficult than 
>   Detection and Interpretation is more difficult than 
Verification.  I 
>   call this the DVI (Detection, Verification and Interpretation) 
>   technique, a term borrowed from the SETI (Search for Extra-
>   Terrrestial Intelligence) project.  In the case of an alien 
(extra-
>   terrestial) broadcasted Detected signal, it is Verified by 
receiving 
>   the same signal in another location in space which is at one of 
the 
>   vertices of an equilateral triangle in the same plane.  Naturally 
the 
>   Interpretation of such an alien broadcasted signal would be even 
more 
>   complex than its Detection and Verification.  In my case, the 
>   Detected signal is Verified by another time-frame and also by the 
>   secondary systems and interpreted by volatality....
> 
>   rgds, Pal
> 
>   --- In amibroker@xxxxxxxxxxxxxxx, Yuki Taga <yukitaga@xxxx> wrote:
>   > Hi palsanand,
>   > 
>   > Friday, October 31, 2003, 10:35:34 AM, you wrote:
>   > 
>   > p> Let me try again.  It is the most accurate system I have come
>   > p> across, once the signals are validated.
>   > 
>   > This sounds like more gobbledegook to me.  "Once the signals are
>   > validated"?  What does this mean, for crying out loud?  Either 
it is
>   > a signal, or it's not.  If it needs some validation, it's not a
>   > signal IMHO, but a setup.  A signal means take action in the 
market.
>   > How long you hold it may very well be dependent on what 
subsequently
>   > happens, but a signal is a signal, or it's something else, in 
which
>   > case it is not a signal. You really do write in the most 
convoluted
>   > circles, Pal, but I'm open to more interpretation.  ^^_^^
>   > 
>   > And the bit about not taking losses sounds very strange to me.  
It
>   > sounds like you don't take any loss because the "signal" might
>   > "validate" to me.  What if it doesn't, and this is the decision 
you
>   > have to make?  Something is very, very strange about the way you
>   > describe your trading.  Maybe you just don't write so well?
>   > 
>   > Yuki
> 
> 
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