how to manage false breakouts on NQ ES
- Thread starter pawpaw
- Start date
Your best way to manage this is with a stop loss order and a journal.
Use a stop loss to preserve capital. Use a journal to record what you saw that made you feel you had a breakout, ie was it the volume, the spead of the trades, the level, was it a key figure from yesterday's or last week's trading?
Review your journal and you will find what is really working and what is causing you to trade break outs that fade.
Use a stop loss to preserve capital. Use a journal to record what you saw that made you feel you had a breakout, ie was it the volume, the spead of the trades, the level, was it a key figure from yesterday's or last week's trading?
Review your journal and you will find what is really working and what is causing you to trade break outs that fade.
Actually (and I'm serious here) I would be very surprised if this made any money in a mechanical system. I've never tested it that way because I don't believe in mechanical systems. And because I'm such a lousy programmer
So if it does work that way, then I'm beginning to think I gave away too much information!!! My assumption was always that success with it could only come after mastery of several different nuances. Have I just shot myself in the foot giving it away?! Well if I did, let me just hope that someone who is appreciative gives me something back in return. I ain't that bloody altruistic!
Quote from Simtrader:
Actually (and I'm serious here) I would be very surprised if this made any money in a mechanical system. I've never tested it that way because I don't believe in mechanical systems. And because I'm such a lousy programmer
So if it does work that way, then I'm beginning to think I gave away too much information!!! My assumption was always that success with it could only come after mastery of several different nuances. Have I just shot myself in the foot giving it away?! Well if I did, let me just hope that someone who is appreciative gives me something back in return. I ain't that bloody altruistic!
Not only does it work a treat Simboyo but from next week I'm marketing it as "Simpletrader.................Only $457 plus one off license fee of $87"
Your 5% of net sales will be forwarded to you once I have recouped my substantial research costs.
Thanks Partner.........................Klutz
Be careful.
When I was a programmer for a hedge fund that manages a commodity pool, I designed a system very similar to this,[it was WAY more intelligent about position sizing, adding at the right times during the coils, etc.] It worked decently for a while, but we were always well aware that all B/O systems do well in trending markets and get CRUSHED and whipsawed in sideways markets. Remember, trends accounbt for something like 15% of market action. Our solution was to run multiple systems at the same time, diversified over many commodities. We did quite a few more things that are nonstandard that helped some...
There is no free lunch.
nitro
No you can't ask. And yes I do have to come across as an angry trader with insufferable people like you. On just your last post you said wanted me to leave for god's sake. Or have you forgotten that you said that?
When I did something decent and posted a potentially viable trading method on Page 24 (a rarity around here), what was your response? You effectively said "thank you very much it looks interesting, but I would now like you to leave this forum because you are stupid and immature". How dare you!!!
You take something of mine, something that could put money in your pocket, and then have the audacity & gall to tell me to leave?!!. That makes you one of the most shamleless and dishonourable people I have yet met on this site. Not to mention another holier-than-thou, self-righteous asshole. Give me just ONE good reason why you think I should answer any further questions from you?
Hang your head in shame and issue a public apology and I'll think about it.
Absolutely correct. This sure as hell ain't the holy grail but it's not a bad way of deciding which breakouts to choose. The truth is that I have a couple of "simple" reversal/pullback trades that I also use. Markets change and it's important to change with them. What I will say is that my pullback/reversal stuff is equally simple, also uses just Bollinger & Mov Avg lines, and also only in the same time periods. Instead of buying at the upper band, I'm buying at the lower band (under certain conditions). No, don't ask me for details - like I said, I ain't that bloody altruistic!
Anyway, I thought I was on your IGNORE list Mr. Esstablishment man? In case I'm not on it, please don't reply to this because I will then lose all street cred around here
Amen to that Brother nitro... for every supposed free lunch there is a precisely compensating trade-off... this simple idea has repeated itself umpteen times over the years that I have been trading...