I guess that's the only tricky part of trading the daily with this method. Within one day, the price can move so far up or down so as to 'flip the dot', then retrace far enough to re-flip it. I am not yet trading this method, but I have an idea that might help. IT HAS helped me with the system that I am currently trading:
Wait until a new bar opens up before you act. This way, you know that the indicator has settled for the previous bar and it won't change again. This has helped me to be more mechanical with my trading and be less influenced psychologically. dpaterso, I am the same as you... I can't help but check my open positions ALL the time. By introducing a rule that I only act at the beginning of a new candle, I have SEVERELY reduced the amount of instances where I pull a position too soon because I wuss out, so to speak. I use this technique on all timeframes and it is one of the best things I have done with my trading. There are two drawbacks though:
1. You might miss some profits. By waiting till the new candle opens, you may be reacting a little slowly to the market. I believe this is offset by the amount of times it will keep you in a profitable trade, or stop you entering a trade prematurely.
2. Determining what time of the day the daily chart opens a new candle can be tricky. Also, you might be asleep or at work when the new candle opens, so your reaction time might be even slower.
See what you think and let me know.
Cheers,
Benjimang
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