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Thread: Auto-Pilot Disengaged – August 8, 2011

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  1. #1
    Thanks, Billy, for the great feedback.

    I'm no statistician but I do wonder at what point we can truly test a sufficient number of scenarios that we feel comfortable dipping our toe in the water again. Without sounding melodramatic, I think it's fair for me to be concerned that a similar situation to what just occurred (i.e., a 20DMF signal overridden with the outcome being a series of Robot trades that were stopped out), could happen again. In other words, not knowing what I don't know is an uncomfortable position to be in, and I don't know what other series of events could result in the EV system encountering another unknown, so to speak.

    In hindsight, I wish I had raised the issue of the 20DMF moving below the 0% line forcefully. However, would that truly have changed anything in terms of your and Pascal's response? I'm not trying to be cheeky, here; I'm merely trying to ascertain whether poking and prodding on my (and everyone's) part is helpful to the goal of improving the system.

    It's a difficult problem: we want to trade with statistical probabilities on our side, but at the same time, do we have a sufficiently robust sample set to truly feel comfortable we "have the bases covered"?

  2. #2
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    Quote Originally Posted by adam ali View Post
    It's a difficult problem: we want to trade with statistical probabilities on our side, but at the same time, do we have a sufficiently robust sample set to truly feel comfortable we "have the bases covered"?
    Adam, you want HIGH probabilities on your side. None can be found in any direction based on Friday's close however you look at it. I've probably read more than 100 blogs and newsletters this weekend and whatever any indicator they use, they are all amazed how they are in "terra incognita".
    I doubt any algorithm from anyone could provide a valid high probability trading plan for more than a few minutes currently.
    Cash is King! Cash is a position with a stop once we see high probability trades again.
    Billy

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