Quote Originally Posted by Sandy View Post
Hi Billy/Pascal,

I am looking to get advantage of some volatility during Robot stays in the same signal (long or short).

I was considering to exit when 3 day expected target is reached and then reenter on pullback, until Robot signal stays in the same direction. This will give benefit of some inter-days or intra-day volatility.

I was wondering that it is good idea or anyone is already doing same.

Thanks.

Sandy
Sandy,
It is up to each trader to either follow the optimized robot trades exactly or to use the robot as a support for discretionary trading decisions.
However, backtesting proved that your idea is likely to yield disappointing long term risk-adjusted returns. Indeed, your idea is to trade mean-reversion which has only provided 40% from the robot signals total profits. 60% of the gains are created from trend-following trades and your mean-reversion approach will make you miss a high percentage of these gains. In a strong trend, if you exit on target and there's no pullback allowing for re-entry, what will you do?
Billy