My trading system, Any thoughts?

[MVR]

Quote from omniscient:

http://www.ensignsoftware.com/tips/tradingtips72.htm

https://www.tradestation.com/Discussions/Topic.aspx?Topic_ID=40589

http://www.justdata.com.au/Journals/AlanHull/hull_ma.htm

i planned on paper trading this strategy for 100 trading days, but i became overanxious and jumped in anyway, thereby deviating from my plan.

Hello,
Excellent links, thank you.
You where pretty much spot on there with the 100 days. hahaha cant hide anything from you.
I brought a firend in to trade with, so we keep each other on track. So there is no deviating from the entry and exit rules.
Thanks for the feedback.
wishing you abundant trading,
Mark

 

[MVR]

Quote from Corelio:

Two points come into consideration:

1) not coincidentally we have been in a roaring bull for 3+ yrs.

2) market orders at the onset of new 52-wk highs should give you plenty of slippage on your entries.

I agree, market orders do give slippage, but it is a trade off of sorts, a limit order can miss the move.
I will play with both and see which comes out ahead.
Thanks for the feeback,
wishing you abundant trading,
Mark

 

[MVR]

Quote from optioncoach:

Crtiques are useless really. Only thing that matters is whether the system makes money or not. Since you admittedly are a beginner and borrowed money and are jumping into full-teim trading without seriously backtesting, I say there is no problem with the system at all.

The problem lies with the human being pushing the buttons and pulling the trigger. That is where the money hole is going to suck out the profits

Hello,
Glad to hear you think there is no problem with the system.
Hopefully my friend and I will keep each other to the system as we trade it.
Thanks for the feedback,
wishing you abundant trading,
Mark

 

[MVR]

Quote from Hook N. Sinker:

You might want to include an estimate of slippage in your calculations. My daytrading simulations suggest slippage might be equal to about 1/3 of profit. My short term position trading modeling suggests suggests slippage is significant, particularly at opening gaps.

Slippage is the difference between expected execution price and actual execution price.

Hello,

I attempt to allow for a little slippage during paper trading by writing down the entry price for the ask on entry and the bid on exit 10 seconds after I make the decision. I kinda figured this would allow time for the imaginary order to be processed. Since MBtrading doesnt have a proper demo account(no live data) I cant test the system more accurately.
But I shall have a look at my figures and see what my returns would be if I reduce my profitable trades by 1/3 and increase my unprofitable figures by 1/3.
Hmmm food for thought.
Thanks for the info,
wishing you abundant trading,
Mark

 

[bloosteak]

you can backtest for free using old data at www.stockfetcher.com

 

[MVR]

Quote from bloosteak:

you can backtest for free using old data at www.stockfetcher.com

Hello,
Thanks for the link.
My problem with back testing is that I only trade 52 week high break outs with high volume and momentum that appear on my scanner the moment they happen.
To find these conditions and back test them from previous data would be difficult. Hmmm I am sure there is a way, I just have not figured it out.
Thank you for the feedback!
Wishing you abundant trading,
Mark

 

[ElectricSavant]

This is what I have trouble with..a short term EliteTrader does not care..and should not have a bias, other than the cycle of the moment said in Melissa Etheridges voice )...52 weeks is very long...

ok i am dog sh%$ in a bull environment


- Breaking 52 week high

P.S. didn't one of those market guru's mention that 70% or more of a stocks movement is predicated upon general index direction?...ah heck trade Futures and screw the individual stock accounting scandals and the CEO scandals...and the earnings can flow in the wind ....

Human Nature and an individuals power to manipulate...start at the top...so why not blend it in a Futures index and spread it out a little..

RealisticiInYourFace..Savant

 

[traderdragon2]

0.6% to 10% a day return. No way. This will end badly for you.

Stick to 100 shares max, and no more than 3 trades a day for the first 3 months.

When you look back at your real returns, you will thank me for saving you so much money.

Or go balls in and come back crying about how you couldnt follow you rules under real pressure, how the slippage was far worse than you could imagine, how you could never hold on long enough to your winners, and how you should have cut your losers quicker, and a host of other problems you will swear caused you to lose so badly.

 

[callmeput]

If you KNOW you can do it then you can. You have a plan so...

 

[MVR]

Quote from traderdragon2:

0.6% to 10% a day return. No way. This will end badly for you.

Stick to 100 shares max, and no more than 3 trades a day for the first 3 months.

When you look back at your real returns, you will thank me for saving you so much money.

Or go balls in and come back crying about how you couldnt follow you rules under real pressure, how the slippage was far worse than you could imagine, how you could never hold on long enough to your winners, and how you should have cut your losers quicker, and a host of other problems you will swear caused you to lose so badly.

(repost, the first one didnt seem to make it onto the list)

Hello,
I will definitely take your ideas on board.
I do recommend the trade ideas scanner, it gives good results. Friday before last it gave me a 10% move over 9 minutes (3% decline over the next 5min)with huge volume and it gave a similar move a couple weeks before that. Just those two trades would have paid good wages.
I do plan on 100 share trades till I fall back into the swing of things though. 3 Years ago, I went hard into intraday trading for about 3 months. I was $400 up at the end of it. At that time I did not realise how lucky I was, I should have gone broke. I didnt understand stop losses then, but my entries where good.
I realise that education and psychology is everything in trading now. So I chew through about 1 book a week. I study the market fulltime nowadays.

As my normal profession is teaching Tai Chi and meditation, the psychology part comes easy. Its the technical side which I am embracing a steep learning curve on at present.

For psychology I apply a combination of the sedona method and Buddhist release techniques.

I cut my losers towards the close of the first (1m) red candle to appear on momentum trades.
I do jump between the scanner and the IBD100 on my watch list. The first 1/2 hour of the market is ussually the most profitable for my current trading plan, except when the indexs are down, then I dont bother.

Your views are appreciated.
wishing you abundant trading,
Mark