Thursday, 5 April 2012

Staying in Trades Longer

Today's charts are using the new eSignal 11.4 software. I'm working on some new exit ideas to stay in trades longer and am looking at some stuff that works with this platform. The way this transition is shaping up means that being a little longer term may be even more profitable if I can back test some new longer exit strategies that are consistent and can be properly measured.

I'm a long time user of eSignal, due to their comprehensive data, but have not used their charting software for years. The new charts in 11.4 are impressive looking. I'm looking for my old studies that I had written for this platform but there seems to be a few hundred CDs to look through.

I was eagerly waiting for this morning to see how the day unfolds. Would we see a further down move of the stock markets or would buyers appear on the dip? It's 6.30 am London time as I'm beginning to write this and the answer is yet unknown.

Markets holding for the time being as I'm writing this, but there should be a test of the lows either today or later.

DAX had a very nice trade as you can see.


  1. I have some what adapted your method and what I do for a longer term exit is using a swing point like Gann explained. I know you have used something similar in your charts a while back. When the trend is down, I wait with my last portion of the trade for the breaktrough of the last swingpoint high. I only use this if the daily sentiment is in my direction. It somewhat hard to back test, but it is more profitable then exiting at a Poc or valh or low with the last portion. I have sometimes days when it goes all the way to the end of the day...

  2. Hi Daniel, Good Stuff. That's exactly what I'm looking at: Fractals as Gann described them. I do use VAL and VAH and POCs but I can see when they hit those. The areas that Gann described are not as easy to see, at least in the beginning.

  3. Hi Tom,

    The thing I do is using a 2 new high for a upleg and a 2 new low for a down leg and then using the highest point for a swingpoint high and the lowest point for a swing point low. When the underlying goes through one of those swingpoint highs and closes above the swinpoint high, when I'm short, I exit with the last portion, because the downtrend is over. In your graph of today you have your crosshair exactly at an exit point when you are short from your first entry. 5 bars ago from your crosshair is a swingpoint high, 3 bars ago a new swingpoint low. 1 bar ago closes above swingpoint high and gives an exit signal... Reverse theorie for longs. Sometimes I give a lot back, but most of the time it gives nice longer term exits.
    This comes from Robert Krauz book about Gann. Works pretty good with range bar charts.

    1. Daniel, Robert was a great guy and his work was very interesting. The way the markets are transitioning, staying in a trade longer makes more sense. Thanks for your comment.