Thursday, 15 March 2012

Any Liquid Symbol, Any Periodicity

A methodology must be robust and have a true "edge" (hate that expression), in order to work for any liquid symbol and any periodicity. The market is the market is the market.

What I do is very simple and does meet that criteria. I'm not saying that trading is easy because we have to beat the beast: ourselves, and that is the rub. Doing the same thing over and over and training that muscle memory in our brains is what helps ovecome the beast within. We need that long repetitive successful experience based on the knowledge gained from backtesting. Trading is not a religion and hence faith is not enough.

Today's chart shows the DAX again. I traded it off a 6 tick range bar chart. Not on the most hectic days, but when the market has taken a bit of valium this chart works well.

You will see both discretionary trades and algo trades on this chart. The interesting thing with the algo trades is how even the profitable algo can be made more profitable by manually managing the trades after it has entered them. Using a bit of context that the algo can't see makes a lot of difference to an already backtested profitable algo. The BIG arrows are the manual trades. The YELLOW dots are the exits from manually exiting the algo trades using the normal EL rules that I teach.

1 comment:

  1. Wow, Fantastic Blog, it’s so helpful to me, and your blog is very good,’ve learned a lot from your blog here, Keep on going, my friend, I will keep an eye on it,
    Lou Lentine