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Market calls...100% accurate!
- Thread starter ML_QUANT
- Start date
In your example, aren't you just getting flat on your first trade?
Which in your example, would just mean that you are altering your trading plan/setup?
So in your example, let's just say you had a simplified setup, where you say you go short when the 30MA moves down. So then you see a signal produced by a 15MA in the opposite direction, so you go long/flat.
Wouldn't that just be saying that your setups means you enter on a 30MA headed down, and exit on a shorter time frame(i.e. when the 15MA turns up)?
You're really not long and short simultaneously right?
Using this method, how would you avoid being 'chopped' up? It seems like you would inevitibly wind up over trading, chasing price around?
Any details on how you would take trades, particular setups?
Which in your example, would just mean that you are altering your trading plan/setup?
So in your example, let's just say you had a simplified setup, where you say you go short when the 30MA moves down. So then you see a signal produced by a 15MA in the opposite direction, so you go long/flat.
Wouldn't that just be saying that your setups means you enter on a 30MA headed down, and exit on a shorter time frame(i.e. when the 15MA turns up)?
You're really not long and short simultaneously right?
Using this method, how would you avoid being 'chopped' up? It seems like you would inevitibly wind up over trading, chasing price around?
Any details on how you would take trades, particular setups?
Remember on the reaching of the second imaginary target you exit the long(take profits) and hence become short again and thus having avoided some of the DD.Quote from forrestang:
In your example, aren't you just getting flat on your first trade?
Which in your example, would just mean that you are altering your trading plan/setup?
So in your example, let's just say you had a simplified setup, where you say you go short when the 30MA moves down. So then you see a signal produced by a 15MA in the opposite direction, so you go long/flat.
Wouldn't that just be saying that your setups means you enter on a 30MA headed down, and exit on a shorter time frame(i.e. when the 15MA turns up)?
You're really not long and short simultaneously right?
Using this method, how would you avoid being 'chopped' up? It seems like you would inevitibly wind up over trading, chasing price around?
Any details on how you would take trades, particular setups?
OK, there is an easier way of explaining this. Let us take 2 instruments with strong correlation like 1 ES for 500 SPY.
Your 30 sma signal is a medium term valid signal and again for the sake of argument imagine it is a reversing signal whereby it keeps you in the market all the time. Now having gone short on that signal 1 ES contract, what would stop you to not take advantage of the short term signals in the opposite direction with 500 shares of ETF?
Why not benefit from the DD when & while your Stop has not been hit?
Now if this with 2 instruments makes any sense then using the same instrument that has 100% correlation with itself and does not introduce other forms of complication should make even more sense.
You should never think of it as being flat, because you are not,you are just using 2 or even 20 different strategies on the SAME instrument and treating each strategy independently and not caring about your net positions, the strategies at the end of the day will take care of that for you!
Let me know if I,m still not coming through and I'll add more rant or maybe others could pitch in here too.
Thats good, if you have an approach that works, taking only those trades that fit the criteria is key. Some people know how to trade and have a good method or edge but they self sabotage by taking trades outside their parameters. Doing this again and again just ingrains that bad behavior.
Glad to hear you are sticking with a solid plan.
Glad to hear you are sticking with a solid plan.
Quote from ML_QUANT:
I don't make daily calls, only when and if a situation that fits my model presents itself.
Quote from ML_QUANT:
Remember on the reaching of the second imaginary target you exit the long(take profits) and hence become short again and thus having avoided some of the DD.
OK, there is an easier way of explaining this. Let us take 2 instruments with strong correlation like 1 ES for 500 SPY.
Your 30 sma signal is a medium term valid signal and again for the sake of argument imagine it is a reversing signal whereby it keeps you in the market all the time. Now having gone short on that signal 1 ES contract, what would stop you to not take advantage of the short term signals in the opposite direction with 500 shares of ETF?
Why not benefit from the DD when & while your Stop has not been hit?
Now if this with 2 instruments makes any sense then using the same instrument that has 100% correlation with itself and does not introduce other forms of complication should make even more sense.
You should never think of it as being flat, because you are not,you are just using 2 or even 20 different strategies on the SAME instrument and treating each strategy independently and not caring about your net positions, the strategies at the end of the day will take care of that for you!
Let me know if I,m still not coming through and I'll add more rant or maybe others could pitch in here too.
It is making some sense.
Ok, so let's stick to using the same instrument for now.
Are you just using an opposing position to eliminate the DD and that's the main reason? And then how do you stager your orders so you aren't 'zero-ing' your position out?
Are you in two opposing positions to 'hedge' yourself, or are you in two opposing positions to play two different strategies?