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Brownsfan-I hear what you are saying but purely as an acdemic question do you think stop and reverse strtegies can have overall a better result despite the losses accumulated during sideways market movements?

My trading experience has shown me that stop and reverse trading system generates quite large losses in non trending markets. I feel it is better to establish a direction for a given period, say a week, and then trade only in that direction. For example if you analysis indicates that the...

Hi Jack What I meant was non trending markets and not non trading. Too many position reversals with a small loss every time can accumulate to a very large loss without the market having made any significant move. This is why I feel unless the market is in a trading range reversing of...

Hi Mark I am now clearer about what you mean. For example if my entry criteria is say, for example, when the slope of the moving average is a certain degree then the exit strategy could be when the moving average is crossed ( i.e. somehow involves the moving average)but this would not...

My main problem with the exit and entry strategy being the same is this. In trend following models a lot of the profit is lost before a reversal, hence profit take, is signaled. I admit that if a system is designed for ranging markets as mentioned by JJ earlier, and the market stays in a...

To trade up to 200 trades a day surely all cannot come out right not to mention the accumulation of commision charges unless one operates like or as a market maker.

Hi Jack If I am to understand you correctly what you are saying is that every time a positioned is closed it is reversed. Now if this approach is applied to most trend following systems it can cause massive losses during non trading markets. Your views would be most welcomed.

Every one is agrees on the need to put a stop order when opening a position. Very little is ever written or discussed on the need to close a position with profit rather than have a trailing stop. My own experience is that trailing stops are very costly and very often eat into the majority or...

By before I mean a few minutes before the release of the data, say 5 minutes. By after I mean what ever trend appears to develop after the figure. I use 2 or 5 minute bar charts and one cannot expect a trend to be assessed in less that say 30 to 60 time periods. Using a 2 minute bar charts...

As an intraday trader how do you handle the release economic figures? Very often, to hold a position before their release seems to be worse than rolling dice. On the other hand sometimes the best move of the day happens immediately and instantaneously after the release of the figures...