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I trade some systems of the same length, but regardless of the length, you
are right in your sense that it makes little difference. The entry
technique is the LEAST important part of the system. People have a very
difficult time accepting this. Exit strategy and money management are much
more important than the entry.
Yes, you should test it if you can, but I think you will find very little
difference over time. Just be consistent and use the technique that makes
the most sense to you.
I am a trendfollower and I used to enter Market on open after a signal, but
it nagged me that I wasn't always entering "with" the trend, so now I use
stops to enter a tick above the previous close (for longs). This insures
at least some tiny momentum with the trend. Some fills are worse, some are
better, it probably doesn't affect performance in the long run, but I feel
better about it so it is worth it.
Good Luck,
Eric
Conrad Bowers wrote:
> A question for everyone: I am a medium term trader (holding times of
> 0-30 days, typically). For people who trade in this timeframe, have
> you found it better to enter with a limit order, somehow guessing where
> low should be today (or in next few days) or is it better to enter at
> the open once an enty is signalled. I know this is a very broad
> questions, but any insights? I have tried a combination of popular
> pivot calcs, linear regression of the lows/highs and lately, comparing
> the rate of the trend with the average and SD of close-low (for a buy).
> But the mkt often cares not about my schemes, and I get left behind. I
> guess the real answer I need to test my signals with and without limit
> orders for entries, if I can ever get the system coded. But if anyone
> has suggestions for how to set limits or whether to use limits at all
> (or sources discussing this), I'd appreciate it.
>
>
> Conrad Bowers
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