the other thing is if you look at the successful long trend you outlined in the screen print you would place a buy at the beginning of that trend but after a few candles it actually touched your 200 ema which is when you exit. So then you would have entered a sell as the red Heikin Ashi candles went down below the 200 ema. At that point it then went up again pass the 200 ema again.. so you would again close your sell and enter a buy, the. After a few candles it also went down and hit your 200 ema yet again. So that’s actually already 3-4 loses already as the proper successful trend didn’t start until after all these loses.
Also the biggest question is what do you do when the market is ranging?.. in a live situation the rules are you buy if the price passes thru above the 200 ema and you close your trade when it next hits the 200 ema again. Then you sell as the price passes down thru the 200 ema again. So if market is ranging for say an extended period of time and you get in and out each time price touches the 200 ema, you sell close, you buy close, you sell close and so on, then how are you going to risk manage these loses or do you have additional rules for entries and exits gringo. Thanks in advance my friend.
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