TimeFreedom, Hayseed, and others.... I hate to bog the system down with lagging and potentially repainting indicators.... but...
One thing I'm looking at are two indicators I'm positng here. MT4-LSAR, and SHI_SilverTrend. I'm thinking of using them something like this. Put these indicators on a Daily chart. At the specified evaluation time you first look at the MT4-LSAR. If it is above the line, then you evaluate for an Average Down interval of 200 pips. If below the line, evaluate for an Average Down of -- say, 400 pips. So, if you are below the line and the current price is 400 below your current average price, then you can add a new Average Down position. If it is less than 400, you wait. But if it is above the line you can add a new Average Down position if it is as little as 200 below your current Average position. You would then use the SHI_SilverTrend to determine if you build the ladder or not. If the last dot was below prices, you can build a ladder; and if the last dot was above prices you do NOT build the ladder. Exception: If you have crossed the MT4-LSAR going up, you can build a ladder anytime you next place a new Average Down position.
Putting this together with the smarter ladder spacing should minimize the number of new average in positions opened in a downtrend, but make the ones you do put on bring the average down faster. If you put this together with the other ideas you folks are tossing about, like position weighting, I think the combinations will tend to put less risk on the table, and close all dangling position sooner. It does seem somewhat unwise to me, in review, to be building a ladder in the face of a mamoth south bound trend. It just begs to ultimately increase your exposure for a very small gain.
I picked up this general "insight" into the market from another thread run by JR2007, whom Hayseed has done some work with. So, nothing original on my end here other than thinking about how to make it apply on this system.
I know SHI_SilverTrend has been posted around a bit. I've seen some brief statements about how it repaints. I have not actually seen it repaint myself (while I was watching) but I suspect it does. Nevertheless, it doesn't paint or repaint everyday, so in a long move, it will eventually have you doing the right thing (I think). MT4-LSAR must be a variation on the PSAR. It certainly acts the same way. In the broader perspective, I think, with the kind of rules I suggested here, it would tend to really lower your exposure during the "obvious" (in hindsight, of course) unwinding trends. Unfortunately, I have not found the code for MT4-LSAR, and I haven't played with it yet to see if it isn't just the PSAR drawn as a line.
One thing I'm looking at are two indicators I'm positng here. MT4-LSAR, and SHI_SilverTrend. I'm thinking of using them something like this. Put these indicators on a Daily chart. At the specified evaluation time you first look at the MT4-LSAR. If it is above the line, then you evaluate for an Average Down interval of 200 pips. If below the line, evaluate for an Average Down of -- say, 400 pips. So, if you are below the line and the current price is 400 below your current average price, then you can add a new Average Down position. If it is less than 400, you wait. But if it is above the line you can add a new Average Down position if it is as little as 200 below your current Average position. You would then use the SHI_SilverTrend to determine if you build the ladder or not. If the last dot was below prices, you can build a ladder; and if the last dot was above prices you do NOT build the ladder. Exception: If you have crossed the MT4-LSAR going up, you can build a ladder anytime you next place a new Average Down position.
Putting this together with the smarter ladder spacing should minimize the number of new average in positions opened in a downtrend, but make the ones you do put on bring the average down faster. If you put this together with the other ideas you folks are tossing about, like position weighting, I think the combinations will tend to put less risk on the table, and close all dangling position sooner. It does seem somewhat unwise to me, in review, to be building a ladder in the face of a mamoth south bound trend. It just begs to ultimately increase your exposure for a very small gain.
I picked up this general "insight" into the market from another thread run by JR2007, whom Hayseed has done some work with. So, nothing original on my end here other than thinking about how to make it apply on this system.
I know SHI_SilverTrend has been posted around a bit. I've seen some brief statements about how it repaints. I have not actually seen it repaint myself (while I was watching) but I suspect it does. Nevertheless, it doesn't paint or repaint everyday, so in a long move, it will eventually have you doing the right thing (I think). MT4-LSAR must be a variation on the PSAR. It certainly acts the same way. In the broader perspective, I think, with the kind of rules I suggested here, it would tend to really lower your exposure during the "obvious" (in hindsight, of course) unwinding trends. Unfortunately, I have not found the code for MT4-LSAR, and I haven't played with it yet to see if it isn't just the PSAR drawn as a line.
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