Anyone actually trade mechanically?

Quote from Corso482:



Ok, this is very disturbing. Every strategy I've been working with thus far has been enter/exit on open next bar. Exactly how bad is this strategy? Could someone please chime in and say it's not that bad...

btw, I've been testing mostly 2min bars
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Try 5 and 15 min breakout of the previous bar, 2 min is not too practical for generating entries, should be ok for stops. If you can do your own backtesting send me a PM and I will explain further.
Walter
 
Corso, using market orders with bar on close/open is fine and will work. The real issue is to make sure market orders are efficient with your market as opposed to another type of order being more efficient.
 
Quote from MYDemaray:
I've just started trading some strategies live that were supposed to enter "next bar at Close Limit". What I found is that I may or may not get filled at that price. Now I'm just entering at market (on the ES) and slippage, thus far has been .25 or nothing. However, I am also playing for several ES points and holding overnight so slippage is less of an issue for me. The bigger issue for me is getting in the trade.MYD
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This says it all.
 
using mechanical systems can work, but you have to make sure that you are honest with yourself and trade them without emotion. i still deal with tons of traders who forget that these systemsa re set up to take the subjectiveness out of trading, not to put more into it.

ive head great success with using a multi-system approach however - which means that i dont just trade one system. that would be like only investing in one stock at a time.

Pete
 
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