Reversion to the mean only trading...

[murray t turtle]

...... JUST LOCK IN THOSE PROFITS. It does not matter what happens afterwards. If the move continues I can often get back in at a better price than my previous exit that locked in profits thus, in effect, compounding my money as the move continues. I don’t worry about commissions. I guess that too is breaking another rule...ROFLMAO

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That/for countertrends.
Profits ride works well for trends/good trends.
Notice it doesnt matter much even if one gets back in @ a higher price for longs/if its a good trend.[These comments arent limited to es]
NOT sure commissions matter as much as they used to; but back when it did/it was one thing for sure one could control]
Another good thing about taking profits/you help the market makers/specialists/brokers..............................................

 

[trade4succes]

MarkBrown, I assume, from your comment that sometimes your algo experiences positive slippage, that you use marketable orders to get in and out.

Have you (or any other reader here) tried similar strategies, where instead of sending out market orders upon receiving a signal, you send out a limit order, hoping to get filled on the bid/ask? Of course with the aim of minimizing transaction costs. Which is of course more important for intraday strategies. Which brings me to the second question: Would something like this work intraday?

 

[MarkBrown]

MarkBrown, I assume, from your comment that sometimes your algo experiences positive slippage, that you use marketable orders to get in and out.

Have you (or any other reader here) tried similar strategies, where instead of sending out market orders upon receiving a signal, you send out a limit order, hoping to get filled on the bid/ask? Of course with the aim of minimizing transaction costs. Which is of course more important for intraday strategies. Which brings me to the second question: Would something like this work intraday?

at least in many of the index futures where it is very liquid this does work in a counter momentum trade. in fact you can predetermine the positive slippage by creating an average of the past x days of absolute price movement divided into quartiles. m

 

[murray t turtle]

MarkBrown, I assume, from your comment that sometimes your algo experiences positive slippage, that you use marketable orders to get in and out.

Have you (or any other reader here) tried similar strategies, where instead of sending out market orders upon receiving a signal, you send out a limit order, hoping to get filled on the bid/ask? Of course with the aim of minimizing transaction costs. Which is of course more important for intraday strategies. Which brings me to the second question: Would something like this work intraday?

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Yes/it can work well intraday with 4-8+ million or more average day volume. And it can work well enough to let profits pile up/profits ride. Most any kind of trend or counter-trend[mean reversal] has a good morning reversal before going on]
AS far as cutting profits small by a 3;00 close auto exit\that changes the whole deal.
Almost never use market entry\ but market exits work well for me..........

 

[MarkBrown]

i wanted to mention something about reversion to the mean trading styles. one is to identify a trend and trade the initial pullback after a momentum spike in price. as that trend matures and starts to weaken you can usually switch to trading the follow thru side of the pullback.

to figure this out you have to track the point movement from the trend, early in the trend the size of the deviation will be larger than a certain tilting point when deviation starts diminishing. that's when you switch in anticipation of the trend "which is slower to react" flipping.

so basically your counter trend trading to a point where you start fading the trend.

 

[murray t turtle]

i wanted to mention something about reversion to the mean trading styles. one is to identify a trend and trade the initial pullback after a momentum spike in price. as that trend matures and starts to weaken you can usually switch to trading the follow thru side of the pullback.

to figure this out you have to track the point movement from the trend, early in the trend the size of the deviation will be larger than a certain tilting point when deviation starts diminishing. that's when you switch in anticipation of the trend "which is slower to react" flipping.

so basically your counter trend trading to a point where you start fading the trend.

%%
I was looking for a seasonal goof/commercial goof/it happens not very often.
It's like the commercial baker bakes too many pumpkin pies/sweet potatoe pies for thank$giVing.
Found one 33% off/sold LOL.Its like your pattern; sell/exit SPXS a bit early.Too late it may never counter\trend there again..........................................................................

 

[padutrader]

this is stating the obvious but if a pullback exceeds 10-15 bars i think trading this is not advisable.

small pullbacks suggests strength and no pull back even more strength.......

 

[padutrader]

For me scalping successfully is a challenge and I REALLY REALLY like doing it.

this is for you yes...

for most scalping is taking high probability trades with small reward and large risk......i do not understand the challenge part...but that is just me

 

[volpri]

this is for you yes...

for most scalping is taking high probability trades with small reward and large risk......i do not understand the challenge part...but that is just me

The challenge is the bar by bar observation within an immediate context and within the larger context and determining who is stronger for a scalp, bears or bulls and how big of a scalp.

 

[padutrader]

The challenge is the bar by bar observation within an immediate context and within the larger context and determining who is stronger for a scalp, bears or bulls and how big of a scalp.

do not complicate things
trading is easy as abc...DT DB LH HL

Hardly a challenge

but some like Brooks, Hansen Raschke make it one

though brooks does simplify some things and generalise others quite correctly.. he has many good ideas.......but for most of markets the above alphabets are all, that is needed.

easy money...wonder why i ever lost it