Hello again,
As far as my order are concerned: that's ALMOST correct (at Delta anyway) i.e. 1.5 time the spread PLUS 5 ticks / points / pips. Sometimes it may LOOK as though the orders are FAR away from the price but believe me they get hit and you tend NOT to get 'caught for nothing' by a slight movement up or down. It's just personal preference though I guess. At GCI (by the way) I can't do this i.e. the price shown on the charts is ALWAYS the bid price i.e. you don't have a choice so at GCI I used 1 times the spread minus 5 ticks / points / pips for short orders and 2 times the spread pluc 5 ticks / points / pips for long orders.
I think that the Reaction Trend System is probably the most UNDERSTATED system in the book. The only thing that concerns me about the system is that 'B', 'O', and 'S' 'day labelling' i.e. you'll see in the book that it's based on the premise that we get three days up and two days down and I'm not ENTIRELY sure that this still applies. I promised myself that I would write some sort of indicator or calculator or something that will go through the data for a particular instrument and work out the 'average ratio' of up days to down days but I have not got around to it yet. And even when I do then I need to work out how this would affect his 'day labelling' i.e. would it have to be altered or what? Like I did say the other day though: I have used JUST the HBOP and LBOP from that system as a 'system' on it's own i.e. the idea was to ONLY take 'Trend Mode' trades and it worked pretty well the few times I tried it I must say. I even wrote a standalone calculator for it at the time i.e. to calculate the HBOP and LBOP by entering the previous days prices. To be honest though I never used the system for any extended period of time so I can't REALLY comment on the effectiveness of the system as a whole. Conceptually it looks good though.
|