Welcome to Thursday. The day has lots of news, especially for the US Dollar and so we should be looking for opportunities to join the bullish trend for the Usd, after the recent pull back. What I want to talk about today is persistence.
Somewhere in the Rookie section there is a thread with a name like "Does back testing work?" and it mainly deals with "Robot Trading" or so called "Expert Advisors". Unless you are an experienced trader I would stay well away from this these. (a) you need to be a skilled trader to assess the performance. (b) You need to be a skilled programmer to adjust their performance. So lots of work to do to perfect those ideas. See post 21 above. But back testing manually has taught me that there is a good chance that straddle trades work on the daily chart if traded correctly. So I am prepared to trade them. I know they mostly work because i have personally done the study with a paper and pencil.
Anyway. Persistence. If we look at the simple straddle trade described in post 38 above, we find that it roughly made 1 : 1 depending on where your stop loss was placed, then reversed suddenly and is now threatening to go the other way. I was lucky, I moved my stop loss to a small profit, but it didn't go to 1 : 1 for me. Now I am taking the straddle trade the other way. There is a strong possibility that those who, like me, got the direction wrong, will close their shorts. What is a closed short? It's a buy order.
Somewhere in the Rookie section there is a thread with a name like "Does back testing work?" and it mainly deals with "Robot Trading" or so called "Expert Advisors". Unless you are an experienced trader I would stay well away from this these. (a) you need to be a skilled trader to assess the performance. (b) You need to be a skilled programmer to adjust their performance. So lots of work to do to perfect those ideas. See post 21 above. But back testing manually has taught me that there is a good chance that straddle trades work on the daily chart if traded correctly. So I am prepared to trade them. I know they mostly work because i have personally done the study with a paper and pencil.
Anyway. Persistence. If we look at the simple straddle trade described in post 38 above, we find that it roughly made 1 : 1 depending on where your stop loss was placed, then reversed suddenly and is now threatening to go the other way. I was lucky, I moved my stop loss to a small profit, but it didn't go to 1 : 1 for me. Now I am taking the straddle trade the other way. There is a strong possibility that those who, like me, got the direction wrong, will close their shorts. What is a closed short? It's a buy order.
Gone to a better place