I just wanted too post a few more important things that I would consider pertinent too SCT success.
The first issue that comes up very often is when too sideline for lunch and when too restart trading in the afternoon for the afternoon wakeup. If you dont execute this correctly, you will give lots of profits back too the market. I have been fooled many of times too thinking that we were BO of centering when the only thing that happened was a FBO followed by recentering. SCT makes money when there are price moves that are great enough too warrant the risk. My filter that i have decided too use too tell me if the volatility is there for the risk is using MACD. I will enter as if i expect a BO out of centering. If we do not get a + or - .2 on the macd by the second bar. I will exit and wait for the next BO out of centering. If we do get .2, then I will continue too take SCT trades as we are proabably trending.
The other issue is apa's and the proababilities when the current apa bar closes. I have found that SCT and apa's usually put you on the right side. There is one instance when i find that the apa does not put you on the right side. This occurs when the current bar is an IF 2 that ticks 3 ticks away from the prior bars high or low. The price then retraces in the current bar to the prior bars high or low which calls for an apa. Its at this point we are not sure if the apa put you on the right side for continuation of the trend or put you on the wrong side. I have found that a good indication of whether the apa put you on the right side or not is watching where the current bar closes compared too where it opened. If the bar closes at the same price it opened or closes as a color opposite too your position, it has a higher probabililty of being a reversal. This than indicates that the apa you jsut took proabably put you on the wrong side.
I would really appreciate if you would comment on these thoughts. Thanks.
jc
The first issue that comes up very often is when too sideline for lunch and when too restart trading in the afternoon for the afternoon wakeup. If you dont execute this correctly, you will give lots of profits back too the market. I have been fooled many of times too thinking that we were BO of centering when the only thing that happened was a FBO followed by recentering. SCT makes money when there are price moves that are great enough too warrant the risk. My filter that i have decided too use too tell me if the volatility is there for the risk is using MACD. I will enter as if i expect a BO out of centering. If we do not get a + or - .2 on the macd by the second bar. I will exit and wait for the next BO out of centering. If we do get .2, then I will continue too take SCT trades as we are proabably trending.
The other issue is apa's and the proababilities when the current apa bar closes. I have found that SCT and apa's usually put you on the right side. There is one instance when i find that the apa does not put you on the right side. This occurs when the current bar is an IF 2 that ticks 3 ticks away from the prior bars high or low. The price then retraces in the current bar to the prior bars high or low which calls for an apa. Its at this point we are not sure if the apa put you on the right side for continuation of the trend or put you on the wrong side. I have found that a good indication of whether the apa put you on the right side or not is watching where the current bar closes compared too where it opened. If the bar closes at the same price it opened or closes as a color opposite too your position, it has a higher probabililty of being a reversal. This than indicates that the apa you jsut took proabably put you on the wrong side.
I would really appreciate if you would comment on these thoughts. Thanks.
jc
