[chirules54]

Hi Dale, thanks for explaining that to me. Wow... have you seen gold today?! I went to bed last night a little worried about my short TBP trade, I wake up and gold's at $940 an ounce!! It's getting pretty close to the sar point (2.8 multiplier) for the volatility system, same with usd/cad. Although, that was yesterday's sar point, and the big volatility today is going to push the sar point further away, but still, it was a major move. The aud/jpy volatility trade is also seemingly back on track, now up around 500 pips profit.

I was thinking about your "stop order" system last night and I came up with something, maybe you already saw it, but it bugs me a bit. What if you just got a bull candle for the day, and placed a stop order 5 pips above the high of that candle. The next day, the price goes up past this point (so your stop order is hit) but soon after the price goes down and ends the day as a bear candle. You would have suffered a loss, but I suppose that if this happened after say, 5 bull candles in a row, the profit from those first lots should outweigh the loss on that last lot that "turned on you" as the price closes below what you entered the trade at. Looking at a chart, this doesn't seem to happen all that much, I guess it is just one negative part of the system. In a ranging market the system could hurt you too, but as long as the next day's high or low didn't hit your stop order, you would be okay. It's an intriguing idea, I think I'm going to demo trade it for a little while. What timeframe have you been using? My guess is that the 4 hour or daily charts would give better results because you are trading less "noise" of the market ranging up and down throughout the day, and trends are easier (at least for me) to identify on longer-term charts.

I also wanted to confirm a few rules of the swing index... I'm pretty sure I have got it down now, but I just wanted to make sure. I have to go take my last exam in a bit so I will post later.

Good day and good trading,
Nick