I agree that reentries are just a means to satisfy a certain urge to be right.
Unless they are part of your system testing they are a bad idea.
Unless they are part of your system testing they are a bad idea.
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re-entry rules
- Thread starter paulus
- Start date
Quote from paulus:
hi NahabaAshi,
thanks for responding to my mail again; did not trade for a while
(other job) and i am only trying to pick up things by developping
a system in which re-entry rules are implied; i prefer tight stops
so i risk to be stopped out without my setup being no more valid;
what i try to find out are technical criteria which allow to re-enter;
could you please explain "the key to a good re-entry is your original entry ... the duration between the original entry and
the re-entry signal";
btw, i intend to develop a trendfollowing system, whereas your system seems to be based on reversals (divergence) ?
regs,
paulus
Hi Paulus,
The bulk of what I use is based on reversals (divergence).
However...some of those same divergence signals are in the direction of the overall trend...like a trend following system.
For example...markets moves up strongly via whatever reason...pulls back a little...
Within that price pullback...I may get a bullish divergence signal to go with the overall trend as the pullback stops and reverses back upwards.
That's something many traders that don't use divergence signals can't understand.
Simply, divergence signals can be reversals and continuation patterns depending upon the price pattern like as I mentioned above...within price pull backs.
As for tight stops...that's particular to each trader.
A tight stop to one trader may be 1 point.
A tight stop to another trader may be 3 points.
A tight stop to another trader may be 10 points...
All based on their goal of the trade, chart intervals, type of trader (scalper, position, swing) being used et cetera.
Reason why I ask to post a chart so I can see where your coming from instead of guessing.
Also...when I said...
...the key to a good re-entry is your original entry...the duration between the original entry and the re-entry signal..
If you can post a chart of a trade you got stopped out for a loss to only see it go your way...
Without you on board...I can better explain it via your chart example.
Much easier for me to annotate your chart or post something similar instead of writing my explanation.
NihabaAshi
NihabaAshi, thanks for responding,
interesting idea that divergence can be used in a trendfollowing
system as well;
unfortunately i cannot post a chart of my own because i did not
trade the last couple of months; i hopefully will do so soon;
maybe you can post some charts of your own to demonstrate
your thoughts on the subject, if that is not too much to ask ?
kind regards,
paulus
interesting idea that divergence can be used in a trendfollowing
system as well;
unfortunately i cannot post a chart of my own because i did not
trade the last couple of months; i hopefully will do so soon;
maybe you can post some charts of your own to demonstrate
your thoughts on the subject, if that is not too much to ask ?
kind regards,
paulus
Quote from paulus:
NihabaAshi, thanks for responding,
interesting idea that divergence can be used in a trendfollowing
system as well;
unfortunately i cannot post a chart of my own because i did not
trade the last couple of months; i hopefully will do so soon;
maybe you can post some charts of your own to demonstrate
your thoughts on the subject, if that is not too much to ask ?
kind regards,
paulus
Hi Paulus,
The term trend following is a very general phrase to me.
You have not defined it nor posted any charts...
Surely you can post a chart or are you saying you don't have a data provider right now due to the lengthy absence from trading ?
Lets do it this way...when you start trading again and are applying your trend following system...
Post a chart of a trade that you feel a re-entry strategy would be beneficial.
Simply, take it one step at a time...
Don't worry about any re-entry strategy until you have an the original entry strategy defined.
By the way...I've posted lots of charts here at ET before in the past...any of them can be used for a re-entry signal...
Just do a search on the following key words:
Candlestick NihabaAshi
Divergence NihabaAshi
My re-entry signals are based on candlestick patterns and divergence signals...they can occur as reversal signals or continuation signals.
NihabaAshi