Originally Posted by
adam ali
Pascal,
A couple of questions in regard to your post above:
The idea of following a strong signal is to enter on a strong signal only, but follow the trade by looking at the weak signal: if the weak signal changes, then you close the trade. (Be aware that the signal is generated at the close of the indicated date. Hence, you enter at the open of the next day or at the close of the signal day).
I assume you're referring to the LT/ST edges when you refer to following the strength of a Robot signal. If that is correct, then one is to watch the evolution of the LT/ST edges daily and if those edges begin to weaken, the trader is to take appropriate action, i.e., close the trade, correct? Of course, the question remains how weak the signal needs to turn before initiating a closing trade, but I'll leave that question for the time being.
Finally, I can assure you that a strong signal is built and can be seen in advance - by monitoring the evolution of the LT/ST edges), while a weak signal is almost impossible to see without the robot.
If monitoring the evolution of the LT/ST edges can provide an indication of a strong signal, why isn't the reverse true? And this seems to contradict what is said above, i.e., by following the LT/ST edges for weakness, one can gauge when to close a trade.