Thank you Pekelo for posting today. I have been waiting for someone else to point out these items. The key issue , as I have said before is that by itself, it is really useless and insignificant. It suggests that the market fluctuates between 1400 and 1410 and will until the end of time. So in essence, it never allows you to capture the big move which is really what trading is all about . ie keeping losses small and capitalizing on letting the winners run.
Things that should be asked are indeed how big of a stop? Do you let it run 2, 3 ,5 or 10 points? Do you trail a stop etc etc etc. None of these items have been addressed and thus the rule while it may work, is singularly nothing.
Now, I have no problem with someone using a rule of 10 signal (or any other signal) to get long on a pullback in an uptrending market, but then you would use something other than the rule of 10 to exit. Otherwise, you would never be able to capture the large moves as we all know that the market does not in fact fluctuate between 1400 and 1410 in perpetuity. This is now certainly my last post on the subject although I thought I had made my position clear before, apparently I hadn't and I had to revisit this. Everyone knows my stance now and I will not comment on this rule anymore. Thank you for your time.
