Bingo, no trend stay out. This is were traders loose big time. They think they need to trade everyday.
Deciding when to take profits (I let most of my winners turn into losers)
- Thread starter IronFist
- Start date
Bingo, no trend stay out. This is were traders loose big time. They think they need to trade everyday.
Yes. But you can find your own if you understand that short term trends are best entered mid morning and later afternoon.
Backtest this with hard stops and profit targets and you'll eventually get it.
Trying to play the trend game between 1100 and 1500 is wasting your time and money. Set your stops and targets and take a long lunch. Unless you're on Pacific time like me, then go back to sleep.
Perhaps try looking at inversion instead of cross-over (aka, when does the 60EMA hit an inversion point?)
I find this works well if you use two moving averages -- a long term one to define the trend, and a short term one to define the trade (this is similar to the Day-Trader 2.0 thread strategy, I believe). Large peaks and valleys are normally found when price moves several deviations away from the lagging trend indicators.
Also, you should look to normalize for volatility somehow. This can be done by altering your stops or changing your entry methods (for example, using two trading moving averages and pyramiding your position).
Best of luck...
By the by, I think this works MUCH better with volume or range bars instead of time...
I find this works well if you use two moving averages -- a long term one to define the trend, and a short term one to define the trade (this is similar to the Day-Trader 2.0 thread strategy, I believe). Large peaks and valleys are normally found when price moves several deviations away from the lagging trend indicators.
Also, you should look to normalize for volatility somehow. This can be done by altering your stops or changing your entry methods (for example, using two trading moving averages and pyramiding your position).
Best of luck...
By the by, I think this works MUCH better with volume or range bars instead of time...
What is an inversion point? Maybe i know it by another name.
i will look into that thread.
What do you mean by "normalize volatility?"
I will look into tick charts. I think OEC's demo has them. How do i go abut determining what tick size to use?
PS. sorry for any typos. i'm posting from my Blackjack.
Inflection point, perhaps?
BY volatility. Set your stops based on ATR. Analyze distance from moving averages based on ATR. Basically, change your strategy relative to volatility. More volatility means taking less risk on trend changes -- trends might not last as long.