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> In these markets the old "let your profits run" adage is 100% true. But
not in reversey markets!
You can't always have your cake and eat it too, but how about coding a
trailing stop after X points or Y time and/or if your indicator shows
a loss of "steam"?
--- Gary Fritz <fritz@xxxxxxxx> wrote:
> > But I added up the MFE of all the trades. Total MFE of all the
> > trades is >60k !!! How much money am I leaving on the table?!? Close
> > to 90% !?! Yikes.
>
> Obviously you're giving back a lot in a lot of your trades. And
> obviously it's not possible to capture anywhere near 100% of the
> MFE. But it seems like you ought to be able to capture a lot
> more than 12%.
>
> Assuming this is a reversing market like the ES/NQ/etc, have you
> looked closely at profit targets? PTs are designed for reversing
> markets because you know the market's going to snap back at you
> at some point. (PTs will kill most trend-following systems,
> because when a market genuinely trends, you don't want to short-
> circuit the trade with a small PT. In these markets the old "let
> your profits run" adage is 100% true. But not in reversey
> markets!)
>
> Beyond that obvious idea, you may be able to find places where
> the market momentum slows down, or indicators diverge, or
> something like that. Apparently your current exit isn't doing a
> very good job of figuring out when the move has lost steam.
>
> Gary
>
>
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