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> you can make money running two systems which can be L&S at the
> same time like this: Assume a L position and the market goes up
> and then triggers a S position. The market then moves down to a
> middle point making both sides profitable.
OK, let's say system 1 goes long at price A, then system 2 enters a
short position at price C, and then the market retraces to B.
With your two-system approach, you have two positions: system 1 has
a profitable long with B-A open profit, and system 2 has a profitable
short with C-B open profit. Your total profit on the two systems is
(B-A) + (C-B) = C-A. The current market value (B) is irrelevant; as
it moves up system 1's long gains value while system 2's short loses
exactly the same value, and vice versa if the market moves down.
That is **exactly** equivalent to a system that goes long at A, exits
and goes flat at C, and then the market retraces to B. That single
position also has a profit of C-A.
I think you're still a little confused...
Gary
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