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If you drop the losing days and retain the winning days, then you're right. But you still don't get it. On the other hand, you're not the only one reading this thread, and perhaps others will benefit, either now or in the future.

For convenience, this is a copy of the chart of the very-short-term trend channel I posted on Friday:

We keep each other on our toes :)

Actually, according to AMT, it's not exactly in the middle of nowhere: http://www.elitetrader.com/vb/showpost.php?p=3933563&postcount=165

FWIW and in the context of the pdfs provided earlier, here are the states of being for the NQ and ES. We'll see what sort of cues and clues they provide when they open this evening.

No apology necessary, but some things do tend to get repeated more often than one might expect, and it would be nice to have them archived somewhere for the benefit of the seekers. So much gets lost, esp after a dozen years. I sound like I'm providing the prologue to The Lord of the Rings.

Maybe there are. If so, why reinvent the wheel?

No offense to Xhale, but have you ever considered a NoDoji FAQs? You'd save so much time. I'm sure Magna wouldn't mind your maintaining one in Journals.

One might also inquire about the differences between ES and NQ, or NQ and CL. NQ has been awfully good to me over the past 15 years. I can't think of any reason why I'd want to trade CL instead. Or ES, for that matter.

Would you mind explaining how does it prevent me from taking proper entries? See the trading plan I've detailed in my threads and plot an EMA on the charts to see the differences in entries and exits. The moving average on my charts is there as a reminder of the direction of the market...

Incidentally, I have neglected to mention another resource which will be of particular interest to those who have no idea what a trading plan is nor how to develop one: Game's Making of a Method. It's by far the best current example of process in this forum. As to the OP, he has to make the...

The whole idea behind using a computer to do the back-testing is to remove the human aspect from the test. Which one may want to do if he is backtesting an indicator-based system. But judging from your charts, this is not what you're trying to do (though you do plot an EMA which is preventing...

If the reversal and rejection of the top of the range is confirmed, is it safe to assume that price will test the lower limit of the range at 3,500? Safe? No. AMT is only a theory, not a law. All you can do is observe and collect data. Theoretically, yes, one could anticipate a return to the...

Why thank you. That amounts to a celebrity endorsement. :)

Trend following and mean reversion are related. See the pdfs I posted to the Ghost thread. As for creating a program that can do all this for you, save yourself the time and trouble. If it could be done, someone would already have done it long ago.

The following is a duplicate of a post I just made to the Ghost thread. Since this process applies to any bar interval, I'm posting it again here so that those who aren't interested in the Ghost thread will run across it anyway. If this seems like clutter, my apologies: I've mentioned scaling...

I've mentioned scaling out several times, but I seem not to have posted the chart, or the post that originally went with it (this is all years old). So, here it is: Scaling Out There need to be criteria for exits. But the nearly universal problem that beginning traders have with regard to...

Here's a draft of the AMT stuff for diagonal ranges, i.e., channels. Without the charts, it amounts to about three pages. This should be brief enough even for the ADHD set. Part One (The Box) is also provided again.

Of course he will. That's why the backtest must be done manually. But you're thinking like an engineer, not a trader. Which is why I included the P:L ratio. It doesn't take a mathematician to see that if one lets his losers run and cuts his profits short, he will lose regardless of his...

It's a different language. Or perhaps even a different reality. A certain type of trader is willing even to pay someone to provide a forecast, which he will then trade come hell or high water. If it fails, it's the other person's fault. He assumes no responsibility. Traders of this sort cannot...