The most important rule(s ) for intraday trading success
- Thread starter gifropan
- Start date
This is a good thread.
Essentially, all the comments are valuable and highlights the reason why we have markets.
My two cents worth is that before trading a "method'', that after adequate backtesting has been done that the method not be applied , in real terms, until adequate forward testing has also been completed; the benefit being it provides the opportunity to modify the method in real time.
Should the results be acceptable, which includes pre determined stop losses and profit levels suited to the individual trader, then proceed.
ONE RULE: SET STOP LOSSES IMMEDIATELY and RELIGIOUSLY. It will give you confidence and peace of mind every time if the trading method is solid.
Essentially, all the comments are valuable and highlights the reason why we have markets.
My two cents worth is that before trading a "method'', that after adequate backtesting has been done that the method not be applied , in real terms, until adequate forward testing has also been completed; the benefit being it provides the opportunity to modify the method in real time.
Should the results be acceptable, which includes pre determined stop losses and profit levels suited to the individual trader, then proceed.
ONE RULE: SET STOP LOSSES IMMEDIATELY and RELIGIOUSLY. It will give you confidence and peace of mind every time if the trading method is solid.
Try to be a contrarian.
This rule is often misunderstood by people. It's not a contradiction to "Never catch a falling knife". Let me explain.
What this rule means is always be aware of where the surprise will come from.
Meaning that if you are in a trend right now, the surprise will come from the counter-trend side, but that doesn't necessarily mean that you will enter counter-trend (catch a falling knife). It means that you will stay nimble with your trend targets because everyone sees the trend and it's a matter of time until it reverses. When you are a contrarian you are analyzing both sides of the story. If you also ACT contrarian then you can anticipate a surprise but only when the knife stops faling (waiting for a reversal pattern).
This rule is often misunderstood by people. It's not a contradiction to "Never catch a falling knife". Let me explain.
What this rule means is always be aware of where the surprise will come from.
Meaning that if you are in a trend right now, the surprise will come from the counter-trend side, but that doesn't necessarily mean that you will enter counter-trend (catch a falling knife). It means that you will stay nimble with your trend targets because everyone sees the trend and it's a matter of time until it reverses. When you are a contrarian you are analyzing both sides of the story. If you also ACT contrarian then you can anticipate a surprise but only when the knife stops faling (waiting for a reversal pattern).
how do you forward test a strategy?
i read somewhere it's getting out-of-sample results
care to elaborate a bit, please?
you trade it live, with money 
backtesting and forward testing is such a load of crap...
thanks,
was wrestling with ninjatrader to try and backtest.
was wrestling with ninjatrader to try and backtest.
