Simple System for Beginners

Quote from ElectricSavant:

The premise is that 90% of the time the market will trade back into the range area for a test of support before continuing in the direction of the breakout.


This 90% number is a strong statement, is this instrument dependent? Can this range area be considered where the most number of trades occur, and be more dynamic, sort of like a "value area"?

Michael B.
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I don't mean litrally 90% backtested across all instruments. What I mean is that the breakout is the high of the day (or the low of the day for shorts)Dont buy the high of the day because any new high is likely to undertake a small retest. Look to enter on the pullback not immediatly on the breakout. For all I care it could be a new 10 minute low following a long signal or a new 10 minute high, following a short signal. All I'm saying is that is makes more sense to enter on a pullback, than at the price extreme.

This strategy will give you slighly better profitability because you're bettering your entry price and reducing your stop loss on the trades that fail.
 
where do 1.0033 & 0.9967 come from??

where do 1.0033 & 0.9967 come from??

where do 1.0033 & 0.9967 come from??

where do 1.0033 & 0.9967 come from??

:confused:
 
If it isn't an imposition / proprietary, would you mind posting the EL? Personally I can't use it since I'm strictly EOD, but the study looks interesting.

Thanks!
 
LOL

ET is absolutely hilarious.

The whole point is a SIMPLE system.

You guys can't help yourselves, you need to optimize everything.

After 20 years in this business it's ALL a wash whenever you add things to anything simple it takes away something else that you can't see till later.

JUST follow the system as is and learn about yourselves and deal with that first..... before you try and fix the world.

geeeeeeeeeezzzzzzzzzzzzz !

Does anybody get it ???
 
Quote from pierson:

abogden,
are you using 12:00 central to measure from or eastern?
For example he was taking the entry at 1:00 central, are saying measure from the 12:00 central time or eastern?
thanks

Pierson
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No, I'm using 12:00 EST
 
Quote from Samson77:

You guys can't help yourselves, you need to optimize everything.
....

After 20 years in this business it's ALL a wash whenever you add things to anything simple it takes away something else that you can't see till later.

....

Does anybody get it ???
More...

No, not too many people get it. Especially the part about adding/changing a system all the time. Everyone need something better - even if they don't know if what they have is any good.
 
Quote from Quah:

No, not too many people get it. Especially the part about adding/changing a system all the time. Everyone need something better - even if they don't know if what they have is any good.
More...

My philosophy always has been: "KISS". The simplest systems work the best.
 
Interesting, i went through by hand and backtested on the NQ July and August like i posted before and got July -23 and August +48 points respectively.

Today i took them and measured from 1:00 central and got July +40.5 and August -23 points.

Almost exactly the opposite but profitable regardless.....i know 2 months is a very small sample but i didn't have anymore time and i thought someone might find it interesting. Maybe trading both of these styles together might smooth out the equity curve. Who knows, i will need to find time to test much further back.

Pierson
 
pierson - I assume your results do not include commish.

Can you tell us how many trades it took to come up with those results so we can include commish?

Thanks.
 
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