|
PureBytes Links
Trading Reference Links
|
<<Many times when I cut off losing trades based on the MAE
idea the system I am testing just re-enters again >>snip
<<I guess this is because I am currently working on systems that buy dips
and sell rallies.>>
Chuck,
MAE can be a very powerful tool. But it needs to fit the logic of a system
it is being applied to. In your case the entry condition will be triggered
again because you are buying on dips. Maybe you should try to force the
system not to enter again directly after you were stopped out using MAE.
Logic would dictate that the trade was not good, so the trigger should not
apply repeatedly to the very same condition which did prove unsuccessful for
this set-up. It would be much better to wait until a "new" market scenario
unfolds which fits your criteria. MAE might still work very well this way.
Markus
|