The above post which is for advanced folks is based on how a person gets to KISS.
At first (beginner) it is extremely important to stay out except when money velocity is high and also to leave before the market goes flat (congestion).
what happens to a person who gets used to making money and watch from the sidelines when no money can be made easily, is that the person experiences "building wealth". The continuing rate of building becomes apparent to the person and it is in the 90,000 a year range. Two factors contribute to this: steady building at a low rate and going to 2 contracts or 3 with the margin available. I advocate doing it the hard way with one contract as long as possible. It becomes difficult when the idle new capital is continuing to steadily grow larger.
As all the initial capital is removed, the aspect of not being able to be a loser becomes significant. Capital still builds.
There is a point like the one the above poster raises. He "sees" the relationship of things now. This stuff is not consciously encountered as long as a person is in a place where he has not encountered building wealth continually. Mot back testers are not able to consciously deal with iteratively improving the substantive aspect of their repertoire.
Nothing is ever going to change about the fundamentals of market operations. This is because markets are based on human behavior. People do, however, mature and they take different places in the spectrum of market participants.
Here is what is afoot. We need to progress as individuals through a series of market roles that lead to excellence. The faster way to do this is without any significant failures along the way to impede growth.
Thus by hammering away in almost flat markets, how to stay out, then how to optimize on rockets, then to taking money out sufficiently that we only trade profits, we get to the place where we consciously use the same identical market basis to optimize making money.
We can ID rockets with 14,1,3, We can smooth with a 2 in the middle. We can catch shifts by using the first number made smaller 10 then 5. We can go from relative to absolute by shifting from Stoc to MACD.
By starting from the beginning using pairs of fractals and seeing how to anticipate, we also catch on to the idea that the defaults on indicators are transferable to different fractals as we look into market fundamental operation on differing levels.
I have not yet pushed any buttons regarding picking up slower fractals for longer term analysis because this is intraday trading. Later maybe.
we are out ahead on about six next levels of backtesting to see how adding to our model enhances it's performance. We are not in a mode where we change the model. We will just add to it to make it comprehense so we can be in the market as a goal well after we have learned to stay out of the market.
this post is a keeper.
