... a way to smooth out the equity curve and control the drawdowns better.
If you accomplished that.. I would immediately endorse you as the forum genius.
Hey MER;
I'm starting to run into this in my backtest and wanted to see what your experience has been... before I proceed.
If you get a close like this, where price stops and reverses without closing below a level... would you go long there? Or do you want a bar closing below... then closing back above (i.e. bar startling the level like it does 4 bars to the left in that image). Thanks.
I'm starting to run into this in my backtest and wanted to see what your experience has been... before I proceed.
If you get a close like this, where price stops and reverses without closing below a level... would you go long there? Or do you want a bar closing below... then closing back above (i.e. bar startling the level like it does 4 bars to the left in that image). Thanks.
- #403
- Nov 4, 2009 1:40pm Nov 4, 2009 1:40pm
- Joined Oct 2005 | Status: Pip Slappa Extrordinaire | 1,013 Posts
Can you imagine trying to develop this to fit each and every trader's needs?
You have to understand that when you enter a 1 lot trade with the stop 50 pips away and another 1 lot trade with the stop 200 pips away, your risk isn't balanced. Your 200 pip stops *will* be hit, so why not take the same risk with both trades and size them differently?
You are in a maze of twisty little passages, all alike.
I must have read your post too fast and misunderstood. I though you were trying to curvefit a money management style to fit all traders of the method...
Anyway... I do the same thing. I made a spreadsheet... my risk is now set to 2% per trade and 6% max exposure at a time. Then put in the stop size and let that tell me how many lots to trade with. It's all good
Anyway... I do the same thing. I made a spreadsheet... my risk is now set to 2% per trade and 6% max exposure at a time. Then put in the stop size and let that tell me how many lots to trade with. It's all good
- #407
- Nov 4, 2009 6:52pm Nov 4, 2009 6:52pm
- Joined Jan 2007 | Status: Trader | 1,626 Posts | Online Now
- #410
- Nov 5, 2009 1:26pm Nov 5, 2009 1:26pm
- Joined Jan 2007 | Status: Trader | 1,626 Posts | Online Now
I'm not normally one to bash or badmouth anyone, but Boutique, how in the world does someone who just signed up on the site, and hasn't even been on here for a full day by the way, come in here and badmouth this strategy? I'll tell you what, when you have accumulated more than 1 post and a little more experience on this forum, come back and voice your opinion and I might listen a little more intently.
This is obviously a demo in which we are covering the basics of the strategy only. Once everyone can grasp the concept, then they can apply their own twist to strategy, that is the whole premise of demo trading. Take fed for example, he has utilized this strategy to work on the 1 hour using it in his own way that works for him. stevegee58 uses a totally different MM strategy that he employs (MM= Money Management since your obviously a newb). I trade this live with the addition of looking for price action setups, reversal patterns, and Fibonacci retracements for filters. In the beginning, I never said this strategy was perfect by any means and someone who has been on this forum for a while would know this.
But look at the facts, I have traded this with a high risk lot sizing, I have taken virtually every trade based on the entry criteria (even having -$27K worth of losses closed prematurely due to lack of margin available), all this on top of doing my live trading and I'm still up over 30% for the month on the demo, figure that one out. Most real traders would kill to get 5-10% a month! We have a strategy with no filters and simple entry and exit strategy that would be on pace to make 360+% per year, hmmm, must be bad.
This just tells us the basic strategy can and will work and lets us imagine the possibilities of this strategy with the right filters and the personal touch of each individual trader.
So, all I can say to those who are following along and see the graph above is read the thread fully, test out the way you want to try it with whatever filters or MM you choose, then make your own conclusions. Otherwise, get off the thread and move on if you don't like what you see, plain and simple.
This is obviously a demo in which we are covering the basics of the strategy only. Once everyone can grasp the concept, then they can apply their own twist to strategy, that is the whole premise of demo trading. Take fed for example, he has utilized this strategy to work on the 1 hour using it in his own way that works for him. stevegee58 uses a totally different MM strategy that he employs (MM= Money Management since your obviously a newb). I trade this live with the addition of looking for price action setups, reversal patterns, and Fibonacci retracements for filters. In the beginning, I never said this strategy was perfect by any means and someone who has been on this forum for a while would know this.
But look at the facts, I have traded this with a high risk lot sizing, I have taken virtually every trade based on the entry criteria (even having -$27K worth of losses closed prematurely due to lack of margin available), all this on top of doing my live trading and I'm still up over 30% for the month on the demo, figure that one out. Most real traders would kill to get 5-10% a month! We have a strategy with no filters and simple entry and exit strategy that would be on pace to make 360+% per year, hmmm, must be bad.
This just tells us the basic strategy can and will work and lets us imagine the possibilities of this strategy with the right filters and the personal touch of each individual trader. So, all I can say to those who are following along and see the graph above is read the thread fully, test out the way you want to try it with whatever filters or MM you choose, then make your own conclusions. Otherwise, get off the thread and move on if you don't like what you see, plain and simple.
I'm not normally one to bash or badmouth anyone, but Boutique, how in the world does someone who just signed up on the site, and hasn't even been on here for a full day by the way, come in here and badmouth this strategy? I'll tell you what, when you have accumulated more than 1 post and a little more experience on this forum, come back and voice your opinion and I might listen a little more intently.
This is obviously a demo in which we are covering the basics of the strategy only. Once everyone can grasp the concept, then they can apply their...
- #416
- Nov 6, 2009 4:38pm Nov 6, 2009 4:38pm
- Joined Jan 2007 | Status: Trader | 1,626 Posts | Online Now
- #417
- Nov 6, 2009 8:20pm Nov 6, 2009 8:20pm
- Joined Jan 2007 | Status: Trader | 1,626 Posts | Online Now
1440 and the 1st field which I forgot the name now I use 10 instead of 64 or 32. That will give you tighter stops, try it that way. I will message you what I do privately tonight when I get back from work... Believe me great results so far
Kelvin