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Gary Funck wrote: Given
> the low frequency of signals however, you'd probably need to trade
> a dozen markets or so, just to get decent diversification and turn
> over on your money.
Gary,
Cool system adaptation. :)
On the short term setups used by Connors and
Raschke, and also the variations used by myself, you have to remember
that these opporunities are VERY short -term in nature.
Re-run your system, and set a "trailing profit" stop at 50% of
position profit. Also set an initial money mangaement stop, just
as you would in REAL trading. :) Set The trailing profit "Floor"
at like 200.00. the system should become exceedingly profitable.
(Like 80 to 90% of the time. ) There ARE some problems with this.
1. As A trader, you WOULD have to constantly monitor and adjust
your stop. 2. Some suspicion can be cast on those high winning numbers
because you don't know if the "bouncing-tic" function is commensurate
with real market action. What I think the Back-test DOES imply, is
that there IS a statistically high chance for profit.
Also, some of the inherent drawbacks of how you can apply systems in
TS for backtesting, also hurt these systems. Unless you go intraday,
you can't apply timing mechanisms, to enter the trade at a favorable
moment.
Also, try combining the 1 day patterns WITH the 2 day patterns, for
a theoretically stronger confirmation of the trade.
If the systems are still going "belly-up", maybe we could get together
on the forum here,
and compare notes. That way we could figure out if I am screwing up
big time here somewhere. :) Also, maybe some form of collaboration
could breed a system that is "user friendly" to as many styles and
traders as possible.
Walt Downs
CIS Trading
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