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Hello List,
1) How do you solve the problem of exits' compatibility? Suppose you have a
number of ways of to exit a position. For me the primary way to exit a
position is a signal in the opposite direction (a simple stop and reverse,
or "always in the market") but it's not the one that troubles me here. For
the other exits, those that don't make you enter in the opposite direction,
some of them will be better, some worse, and the problem is they frequently
coincide - so it's necessary to choose or use a combination of them.
The trouble here is that the system would exit with the first exit condition
it has, and not necessarily is the best. For all I know, for a combination
of exits, every exit has to be tested with every other exit. With 10 exit
techniques it's 90 combinations, seems like a lot of work considering the
number of market conditions it has to be tested against. Comments? Ideas?
2) There's also a problem with re-entry techniques, after the system exits
(not just reverses) and the trend continues. Here also the number of testing
combinations grows exponentially with every re-entry technique.
- forget completely re-entering and just wait for another "regular" signal
(I found most often this works best)
- re-enter again 1 day later;
- re-enter again 1 day later, on an up/down day, or on a close above/below
midpoint (that's 4 combinations, but considering the previous position/trend
was up/down it's already 8).
What's your favorite re-entry technique (if any)?
Yarroll
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http://republika.pl/yarroll999/
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