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Paul Cote wrote:
>
> I would like to get feedback from person's who have traded a trend
> follwing channel breakout methodology and would like to know how they
> liked it.
With such methods, it is imperative to diversify over a dozen markets at
least as congestions eat you alive, and markets trend only 25%to 35% of
the time in the best case. Profitable ratio rarely exceeds 40% and
often ranges from 25% to 35%, hence it is really important to have
nerves of steel and still trade after 10-20 losses in a row. Last but
not leasrn whenever you get a nice winning trend, by all means find a
money management strategy to press the winner so it pays more than all
other losses combined...
> I would also like to hear about any comparisons of trend
> following using channel breakout and point and figure method.
Point and figure has the advantege that few people use it, so you have a
slight edge here, however since it filters a lot of moves, prices can
adversely travel a lot before you have an exit signal. Beware of
mechanical testing, real time results often diverge vastly from
historical results over the same period, because of the nature of the
plottting of P&F.
Gwenn
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