Originally Posted by
davidallison@shaw.ca
Billy (Pascal)
What looked like the perfect EOD setup, hasn’t worked as planned. It amazes me how the market always surprises. I wonder about not entering EOD trades unless the RT robot agrees, as a general rule? The stop of 48.93 was amazing as we came within 12 cents! If we use the logic of not entering the trade due EOD and RT conflict, max leverage could happen as we approach a stop. For a small loss the rewards are dramatic. Billy’s comment on the secondary entry along with the EOD stop would yield potential rewards of over 5%, if we return to the EOD entry. One would be in a very comfortable position now, just waiting for a confirmation of a RT long. With the EOD model so successful why wouldn’t it be safe to assume the RT system, with the same algorithm will outperform? I’m of the opinion we don’t need ATR confirmation to enter short positions as ATR has to confirm with yesterday what might be important today. I’m not saying ATR isn’t a good method, I’m saying it’s just a day late. Also this is just an idea, but if there is agreement between EOD and RT, then RT disagrees, I think we should enter all RT trades. How often does the market surprise? Just look at this trade. On this last trade, we would have entered a long position very briefly, then gone short and covered at some point (maybe using a trailing stop) (maybe using the secondary entry) then gone all in long at the secondary entry, with a 12 cent stop. It would have been an amazing trade with a potential of not far off 10%, assuming we get back to the EOD long entry.
One of my problems trading (I have many) is sticking with the discipline and waiting for the trade to come to me. In the interest of promoting a discussion I hope others will add some input here. In the mean time here are some rules I was thinking about.
For initail primary trades, do not enter a trade unless the RT signal agrees with the EOD signal.
- If in an existing trade and the RT signal changes, follow the RT signal and:
- cover or sell at a RT signal change and re enter EOD trade if still active
- cover or sell at a EOD secondary entry point and re enter EOD trade. Use the EOD stop.
Dave