Can you walk me through the WMT back test?
6309 is the total profit made from trading WMT? I have to assume that's based on 100K per position?
36 separate trades includes opening and closing or is that 18 completed trades?
75% of the trades are profitable.
Can you explain the 3.4 profit...
OK I don't mean to be negative here but to protect my capital I have to look at worse case scenarios.
With a weighted MA the faster a stock drops the faster your exit signal will drop. How often does a stock exit at a loss?
Cash is pretty well a risk free position.
Better to be in cash when the market is going up than in stocks when the market is going down.
Maybe it's old age, but FOMO is no longer a motivator.
Deaddog Version:
A day trade is closing a position the same day I enter it because it hit my stop.
A swing trade is closing a position after a day/week or two because it meets my exit criteria.
A position trade is holding on to or adding to a position because it hasn't met my exit criteria...
That's exactly how the system is meant to function. I don't want to be investing in a down trending market.
I'm considering inverse ETFs but haven't found anything I'm comfortable with at this time.
You're right about the filter. 200 simple ma. Don't initiate any position when SPY is trading below the 200ma. The rest is just finding stocks that are increasing in price, and riding the trend until it ends. The individual stocks take me out of the market when their trend ends.
Simple but...
I haven't experienced much in the way of drawdowns. I'm long only, so when the market is in a down trend, I'm sitting in cash. Because I don't suffer significant drawdowns, that more than makes up for when I underperform in a raging bull market.
I suspect your system will underperform in a...
I wish you luck and commend you for posting a real money account. That's rare for a sponsor.
I developed my strategy specifically to avoid the big draw downs. What concerns me about how this one operates is that it seems to limit the upside and has no limit on the downside.
Hope it works for you.
Interesting system. My priority is capital preservation so I stay away from strategies that will suffer in a prolonged bear market.
I'm curious about the extent of the drawdown. Beating the S&P index isn't worth much if you only drop 25% when the index drops 30.
I trade a long only momo...
Trading plans don't fail. The trader may fail to execute the plan but that is not the plans fault.
Your trade may fail to make a profit but you plan for that when you set your stop.
The object of having a plan is so you know what you are going to do regardless of what the market does. It...
Trading will always outperform buy and hold if you have wild swings. You said yourself that on paper trend following systems outperform.
You don't optimize the strategy in real time you follow it. I'm not talking day trading. Do it weekly. What stress? follow your plan.
2 reasons to do the...
My take; the Deagdog version.
Trading isn't as easy as it looks.
You should have rules.
Emotions make it hard to follow rules.
You need discipline to overcome emotion.
No one teaches how to be disciplined.
The OP is under the impression that repeating shit over and over develops discipline.
In a...