What's your Exit Strategy

Quote from masterm1ne:

I have been trying to figure out a way to exit a trade the best point.
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Been using the same swing trading system for years. The exit is very simple; (rock solid 70% win rate)

C > Ref(HHV(C,2),-1)

Same crap everyday. At (12:50 PST), download delayed Yahoo data, scan the stocks in my universe, place orders.
 
Quote from jstox:

C > Ref(HHV(C,2),-1)
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So, you basically get out of a short position if the close is greater than the highest closing price of the past 2 days?
 
Quote from jack hershey:


So for each bar, doing the same comparison would be like:

Is that an entry?

Is that an entry?

Is that an entry?

Is that an entry?

Is that an entry?

So one might come along.

then:

Is it opposite of my hold?

No, then hold longer.

Yes, then take profits AND also begin to make more money.

I eliminate the insane targetting and the insane setting of stops. Neither make money.

to become proficient a person must learn how to take the market's full offer.

The OP and some other posters cannot post all the entries (A small finite list)
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That would make order generation as simple as it gets but I have a couple of comments-questions:

1) Let's say I have a trend following strategy and market starts going up then Strategy Execution module will be sending a new buy order every tick to the Order Management module. OMS will accept the first order and reject the rest however this constant order flow requires some extra computing power or it will slow down the system otherwise.

2) When the market went up I took a long position then market starts ranging so my algo does not generate neither buy nor sell orders hence I am stuck with the long position until god knows when. How to handle that, just do nothing and wait for the downtrend until Strategy Execution sends sell order?

3) I have a short term and long term strategies that both generated buy on the uptrend so I am double long position. Now market goes down somewhat/temporarily so my algo generates sell which would be right for the short term but not for the long term position, but it will sell both positions. How to handle that?
 
Quote from vincegata:

That would make order generation as simple as it gets but I have a couple of comments-questions:

1) Let's say I have a trend following strategy and market starts going up then Strategy Execution module will be sending a new buy order every tick to the Order Management module. OMS will accept the first order and reject the rest however this constant order flow requires some extra computing power or it will slow down the system otherwise.

Glance at the "key principles" I posted to river. There you see the "suppression circuit concept". You cut off at the pass any incoming data that is NOT going to move the trend forward.

The setting for optimizing making money is in the 10 to 100 milsec range. Some people get into the "noise is always there" type thinking. The markets have no noise when a thorough systemmic appraoch is in use. For one thing, price is NOT a leading indicator of price. you have to only work with leading variables of price.

2) When the market went up I took a long position then market starts ranging so my algo does not generate neither buy nor sell orders hence I am stuck with the long position until god knows when. How to handle that, just do nothing and wait for the downtrend until Strategy Execution sends sell order?

solving this one is fun. When you think about what wsn't that, then you are on the way. Making money is NOT going on. Neither is losing money.

Naturally you smale and look at he range and compare the range to the fixed and variable costs. you see that they are still trivial of you decide to trade thefaster fractal in the range you are sitting in.

this lets you exmine the interlocking ratio of fractals. as you give it a look you prove it is fixed.

the choice becomes using the next faster fractal to suppress until its last move or going to the fractal to p[ull down a greter efficiency and effectiveness in extraction.

By this time in your reasoning you are making money from price change exclusively.

3) I have a short term and long term strategies that both generated buy on the uptrend so I am double long position. Now market goes down somewhat/temporarily so my algo generates sell which would be right for the short term but not for the long term position, but it will sell both positions. How to handle that?

This is the topic known as gating and killing. It has component called failsafe and another one called "I know I know".

We mix and match all four of these and you are on your way.

In the fifties when I did trouble shooting of large vacuum tube systems, i noticed that bi stable multivibrators were all over the place in circuitry. This is where counting became a component of repeated addition more often known as multiplication.

the counting was a count down.

To stop the slower Fractal form trading, do not let it be "ready".

There are a lot of multichart traders who cannot transfer their pargmatism from experience. the alternative for them for making money is to count down the faster fractal than their trading fractal. they do not "get it". this is why nodoji will not trade more than 6 contracts. and she thinks redneck made her that way.

Add count down countrs to your quiver and use the output for "killing the slower fractal and for "gating" the faster fractal. In this way you create a "failsafe" routine and it takes less data processing capacity.
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I am glad to see you went out of the "stats" box.
 
Glance at the "key principles" I posted to river.
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What is river?

and thanks for your post, I'll have some questions later if you do not mind after digest your post.
 
Quote from ExchangeBonds:''In market all the time''

Worst advice ever. Please ....
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LOL:D
A TX spread can be right up there with that worst [long everything & lots of size.]:D

Yes;
That can be proved, even though good stock mutual funds can do well for a long time.:cool:
 
Quote from vincegata:

What is river?

and thanks for your post, I'll have some questions later if you do not mind after digest your post.
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River is the name of a person who is a member of ET.

I had posted the keys for developing and designing ATS's long ago and A mederator deleted the posts. My collaborators were happy about that.

Later a prson here was "lifting" one of our designs (he said is was "his" most profitable. (blowinski). It was the beginner level of the Cash Cow.

Recently, river, asked me to repost the keys. So I did. I also linked them to a leading indicator of price system for making money.

Your questions are very important ones with respect to taking the full offer of the market. They will help a lot of people. become more effective and efficient.
 
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