KISS (Keep it simple stupid) ... but make sure you still have an edge

[TheSaint]

For example, one approach to using the system is to only enter trades when certain thresholds are met in terms of how far price has distanced itself away from the daily open AND away from the day-of-day trend line.

Once these two thresholds are met, trades can be executed upon confirmation of a valid reversal back toward the day-to-day trend line and/or daily open.

Typically every trade made using this version of the system will be successful, but there are likely to be only about three trades made per day at the most, with some days resulting in no trades executed at all.

So basically what you are saying is that your entry system is based on:
1. how far (certain levels, that your system gave you) the price is from the day open price and how far from the daily trend line - both conditions to be met simultaneously;
2. valid reversal sign (also an assumption given by your system) towards the daily trend line and towards the day opening price (both conditions to be met simultaneously)

Am I correct?

 

[TheSaint]

I am not trying to copy or reproduce your system, just trying to figure out something because the system I’m working on contains some small similarities ...

 

[expiated]

So basically what you are saying is that your entry system is based on:
1. how far (certain levels, that your system gave you) the price is from the day open price and how far from the daily trend line - both conditions to be met simultaneously;
2. valid reversal sign (also an assumption given by your system) towards the daily trend line and towards the day opening price (both conditions to be met simultaneously)

Yeah, that’s all correct. It’s all based on statistics—what price is observed to do again, and again, and again, under a particular set of circumstances/parameters.