Keeping It Simple II

dbphoenix · Mar 25, 2003

Quote from spedblavio:

The system outlined does not trail stops before a TL break.

That's true. I missed that. Though it's an option one can use if he likes trailing stops. I've tried them with this and they've been a consistent failure, but that doesn't mean somebody else might not have better luck.

--Db

spedblavio · Mar 25, 2003

I think it would make sense to move initial stop to BE after the TL clears the entry point enough to make that possible.

This should have the same result as waiting for an actual breach to move the stop, but has the advantage of additional protection in case of disconnection (my ISP has been dropping me repeatedly since last Thursday).

spedblavio · Mar 25, 2003

Like to see you present a more mechanical system that is simpler, but doesn't have huge drawdowns or gut-wrenching stops, or overnight holds, or entries that only exist in backtesting, and that has a better risk/reward performance and doesn't encourage over-trading.

I don't think it's possible, since what's being described here is simply how to identify and exploit trend in a way that balances cutting losers short and letting winners run based on the market's nature rather than aribitrary notions.

dbphoenix · Mar 25, 2003

The deciding factor, perhaps, is whether or not one wants to or wants to learn how to trade by price action. There are very few people here who are interested in the subject. Not that I care one way or the other. But this strategy is unlikely to hold any attraction for anyone who would rather take the indicator or pattern route.

--Db

spedblavio · Mar 25, 2003

Quote from dbphoenix:

The deciding factor, perhaps, is whether or not one wants to or wants to learn how to trade by price action. There are very few people here who are interested in the subject. Not that I care one way or the other. But this strategy is unlikely to hold any attraction for anyone who would rather take the indicator or pattern route.

--Db

I can understand that, but I can't relate to it. Somehow, patterns and indicators always confused the hell out of me and made me feel like I didn't really know what I was doing.

But, to each his/her own.

Only 6pts from target here, and I have a stop protecting 5pts of profit at the 2b short trigger.

dbphoenix · Mar 25, 2003

Note that the target coincides with the top of the gap.

--Db

spedblavio · Mar 25, 2003

And the pause here at yesterday's high is not unexpected. Failure would not be a surprise either.

Biomech · Mar 25, 2003

DB, quick question about when you exit a reversal. Do you use similar rules to what you use to get out of your opening trade? Do you have a target in mind or do you just use the break of a trendline to pull your stop in tight?

Thanks.

dbphoenix · Mar 25, 2003

I use the same rules for exit. I want the price to move. If it doesn't, nobody's scared. I'd rather get out and wait for a better entry.

As for targets, no, unless we make a 100% retracement. I just use TLs and reaction levels.

Reversals are just extra money. Don't be greedy.

--Db

spedblavio · Mar 25, 2003

Quote from dbphoenix:

This failure to drop says something.
--Db

Did it say enough for you to get an early entry?

I didn't take the BO so I entered on retracement at 1062.00.

Are you still targeting retracements, or are you trying to be flexible depending on conditions?