the relationship between profit of intraday system and day range

[johnpinochet]

I trade the 10 and 30 year US bonds.

I don't trade the HSI, but if I may, I'll tell you how I would have approached the trade.

First, you can be a trend follower, but just admit to yourself that a day like the one in your JPEG, can't be traded that way.

1) We gapped up.
2) The news was great.
3) Things are bullish.

On the 5 min, I would have bought the retracement sometime around 1100 per your 5 min chart.

On the 1 minute, I would treat trading as a counter-trend limited time only type of trade. I would have sold the first and second retracement after the initial drop. On the third retracement, I would start to think about items 1 - 3 above, and think about the fact that I'm doing counter-trend trading and the fact that the third time is a charm. Time to quit while ahead and change bias back to the original trend which is up.

 

[BigBubba]

i'm a novice at ATS development.

i would think the HSI would require some special parameters in a system. maybe start - stop times for your system. i've been working w/ NQ - tick/volume charts. so... i can basically let it run 24/7. w/ HSI, the frequent gaps would be impossible to factor in. if you started - stopped the system w/ market hours, maybe the consistancy would improve?

just a thought, i havn't a clue how you set your system up.

 

[robinxing]

BigBubba

sure it is intraday system

I am discussing the effect of gap on the system

 

[BigBubba]

well, my point was..

if the system didn't start until after
the market opened, gaps would have no effect.

 

[robinxing]

yes I exit all position before market closes

 

[robinxing]

HSI becomes more volatile and trendless for me in these days

 

[joesan]

Have you been trading a real account £¿


Drawdown is part of the game, accept it. But if drawdown exceeds a pre-determined amount, shut down the strategy.

 

[joesan]

And also make sure backtest your strategy thoroughly before throw in real money, the current market situation is just returning to normal. If the strategy cannot accomodate it, try to find some strategy of different logic which can take advantage of the current market situation. Diversification (of different strategies/ markets) always help.

 

[robinxing]

thank you josean

 

[StreamlineTrade]

Quote from robinxing:

Today Hsi gaps up nealy 700 points

atfer that it moves between a 200 points range

I know the profit of intraday system has much relationship with

day range

today's range is not small

but my trend following system failed

I don't know why

Does someone know why it failed?

thank you

cos yor gig sucks.

Go on market dynamics not stats (when building a system, method, ethos, intuition).