Thanks for the reply Dale, and I'm glad to hear how well you are doing, especially with the RT system. So if the ADX is below 20 OR if DI- AND DI+ are above the adx line you stay out? I knew about ADX being below 20, but I missed the spot in the book where he says to stay out of a trend-following system if the adx is below both di+ and di- lines, I now see it on page 48 though. I assume with the RT system you are using the reaction mode since you are following instruments with an adx below 20, if you hit breakout mode do you switch to that as well?
Also, I was a little unclear on my question last post, let me re-phrase it. Let's say you have an entry point for a SI trade with aud/jpy. The adx is 37, and you enter the trade. A week later, you hit your tisar, and the adx value of aud/jpy is now only 28. You are getting entry signals from a couple other pairs, gbp/jpy and eur/jpy, both of which have higher adx values than aud/jpy does now. Do you stop and reverse with aud/jpy or stay out because even though adx is still above 20, you have other pairs with a higher adx value? I can see how this "dilemma" might also mess up the money management system of never having more than 10% on one instrument and 60% of your account margined, which means you should only have 6 trades open at one time, unless of course you are trading say, only 5% margin with each one. If you get entry signals from new pairs, and you keep trading the ones with adx values that are still above 20 but are no longer the top rated ones, wouldn't you have too many trades?
Also I just wanted to confirm because I was a bit confused before.. you use ADXR to follow the SI trades, NOT ADX.. right? From the book I am getting that ADXR is just today's adx(14) plus the adx(14) 14 days ago divided by 2, correct? The problem I have is that both Oanda and MT4 call the indicator "ADX", but the adx curve appears to be an ADXR curve, because in the book on page 45 there is a graph with adx and adxr plotted on it, and adx seems to "form a sine curve on the adxr line" and the adxr line is relatively smooth, with fewer and less extreme "peaks and valleys" like a sine curve or the adx. In other words, the "ADX" indicator on MT4 and Oanda looks like it is really "ADXR".
|