Trend Following Strategies

schizo said:
Why overcomplicate things? Just use this as your trading template.
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Yeah, but yo do this, right?
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It's a positive joke, merry christmas Schizo!
 
deaddog said:
I also swing trade stocks. (Long only)
I exit on a break of the trend line. (Let the winners run)
The longer I hold a stock, the wider the gap between where I exit and the recent high.
I will exit part of a position if the stock goes parabolic. (sell into strenght)
I will re-enter a position higher than I sold if the price turns around but with a tight stop.
You might also consider selling part of your position at a certain percentage above your entry price.
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I think you mentioned a while ago that price crossing back through a 10-period MA was often used for your exits... do I have that right?

If so, it sounds very similar to the way Steve Bigelow describes his use of the 8EMA T-line (in his many, many, many videos on YouTube and trade show websites; that guy is everywhere).
 
Slope Trader said:
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I think you mentioned a while ago that price crossing back through a 10-period MA was often used for your exits... do I have that right?

If so, it sounds very similar to the way Steve Bigelow describes his use of the 8EMA T-line (in his many, many, many videos on YouTube and trade show websites; that guy is everywhere).
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You have it right. But it depends on how the price is acting.
I watched some Bigalow videos and like anything else it works some of the time.
You kind of have to read the mood of the merket and the particular stock you are trading.
Someone besides Bigalo had a 3/8 ma cross system. Works sometimes. Although nothing works all the times.
 
Oadmani said:
I have been developing a trend-following system, but I am struggling to find a good exit. In other words, I exit too late, and take large losses towards the end of the trade. Overall, it seems like a profitable system, however, I need to find an optimal exit. HAs anyone got any recommendations?

Also, I read "The Intelligent Investor" and I find that the author is very skeptical of those who "follow the market". Does trend-following work?
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Hello Oadmani,

I do not know what trend means when it pertains to making money in the ES futures market.

Furthermore, seems like ALOT of complex thinking trying to determine what trend means.

Exit the trade whenever you feel like exiting the trade.
 
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taowave said:
A mechanical system on daily timeframe MAY have gotten you in SPY around 425 and NOT shaken you out on Wednesday...

Think like a wealthy client who became wealthy by being his own funds manager
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On 10/6 or 11/2 or both?

10/6, 11/2, 8/21 would've all looked the same.

A complete trend following system needs to account for trends that don't materialize before going back down too.

But using the curvature of the MA's might help.

If I had to rank trend strength at the current time I would rank them in the following order:
1) IWM
2)DIA
3)QQQ
4)SPY
 
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tomkat22 said:
But you sure weren't willing to "help" the OP by even mentioning what MA or timeframe you trade.
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Right, but perhaps birdman DID find something helpful in my post. And besides, I don't know that I could be of much help to the original poster anyway, given that this individual, just like me, seems unwilling to disclose any details, other than to say, "I have been developing a trend-following system," thereby making it extremely difficult for me to suggest anything that has a good chance of being particularly/specifically relevant or on target.

I will share the specifics of my approach if and when I am ready to monetize my system—to those who pay, that is—should this day ever come, which is not yet the case. In the meantime, I will not be giving out such information for free. To repeat what I wrote already: "I try to offer as much information as I'm comfortable sharing about what has worked for me." I get it...this wasn't enough for you. Nonetheless, perhaps it might possibly have had some measure of value to others, such as birdman, for example.
 
expiated said:
I will share the specifics of my approach if and when I am ready to monetize my system—to those who pay, that is—should this day ever come, which is not yet the case. I get it...this wasn't enough for you. Nonetheless, perhaps it might possibly have had some measure of value to others, such as birdman, for example.
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I personally dont care what your strategy is as I have no proof it is actually profitable. The only reason I asked what MA/timeframe you settled on is your lengthy post piqued my interest (I guess) and it behooves a trader to keep his eyes and ears open and be curious about other strategies out there.
 
Oadmani said:
I have been developing a trend-following system, but I am struggling to find a good exit. In other words, I exit too late, and take large losses towards the end of the trade. Overall, it seems like a profitable system, however, I need to find an optimal exit. HAs anyone got any recommendations?

Also, I read........ Does trend-following work?
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;
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Actually the trader or investors havVe to do the work;
but like IBD books noted ''new traders want to much with to little work''
Since cant predict, sometimes i take profits on some ;
even though , long term , maybe not the best way to do it.
Good thing for me I seldom read books that tell me why something does not work;
i prefer wins + more research, winners . Good, non random question:caution::caution:
 
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