I just read your statement saying that "cut your losses short" rule doesn't really work for you..
Do you mean that allowing average losses to be bigger than your average wins, in which case your system would have a greater than 50% (most likely better than 65-70%) accuracy?
Or do you mean that you simply do not use stops at all? and simply reverse your position given a signal, therfore being in the market all the time? Or do you mean you simply ride each position till it turns positive come what may? (I hope not! although it would be very interesting..)
Re: following a "losing' system in reverse.
I remember going through various systems and being frustrated that system 'x' would lose me money etc., and then thinking, but wait a minute, if it loses money, then all i'd have to do is reverse the signals and make money. (So, for all the "markets are random" people, losing OR making money (apart from commissions) should be impossible. )
This should work with systematized entry AND exit rules, but I doubt it would work for someone just trying to "fade" himself. Let's say someone was going to buy, but he thinks, i'm such a bad trader, i'll sell instead. He is still faced with the problem of exiting the trade. If he thinks, ok, i'd better buy now and close out, he'd have to fade himself and sell more - he'd never be able to exit.
Do you mean that allowing average losses to be bigger than your average wins, in which case your system would have a greater than 50% (most likely better than 65-70%) accuracy?
Or do you mean that you simply do not use stops at all? and simply reverse your position given a signal, therfore being in the market all the time? Or do you mean you simply ride each position till it turns positive come what may? (I hope not! although it would be very interesting..)
Re: following a "losing' system in reverse.
I remember going through various systems and being frustrated that system 'x' would lose me money etc., and then thinking, but wait a minute, if it loses money, then all i'd have to do is reverse the signals and make money. (So, for all the "markets are random" people, losing OR making money (apart from commissions) should be impossible. )
This should work with systematized entry AND exit rules, but I doubt it would work for someone just trying to "fade" himself. Let's say someone was going to buy, but he thinks, i'm such a bad trader, i'll sell instead. He is still faced with the problem of exiting the trade. If he thinks, ok, i'd better buy now and close out, he'd have to fade himself and sell more - he'd never be able to exit.
