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Trader Jack wrote:
> design it for stop and reverse, or, always in the market. for
> daytraders such as me, and days like today, stops and profit targets
> are irrevalent due to the magnitude of the trading range.
For days like Friday, sure. Days like that, a simple moving average
will make you a fortune. Unfortunately for us traders, they aren't
all like that. My question is, how do you avoid getting killed with
your stop & reverse system when the market goes into a flat trading
range?
My best-performing systems are S&R systems, but they'd do a whole
heck of a lot better if I could figure out a way to have them act a
bit more intelligently in trading ranges. I've had some success with
having them take trades only in the direction of a larger trend.
That tends to reduce the drawdown as a percentage of net, but
typically the net profit drops drastically. Usually you'd be a lot
better off to just always stay in the market.
Any suggestions for good ways to avoid those nasty drawdowns in flat
periods?
Thanks!
Gary
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