Okay, grumpy, now you’re really confusing me.
Back in post #4 in this thread, you said:
[quote=“captgrumpy, post:4, topic:122057, full:true”]
At, or close to, the end of a run the WMA5 makes a direction change which I called a small spike–it is really just a small peak indicating the chart has (or just about to) reversed direction. This is what I call a trade point (TP) with trades actually made at the opening of the first block (candle) after the TP. On the trades on your chart you show the trades at the closing of the block.[/quote]
So, you were clearly saying that trades are made after the close of the daily candle on which the signal occurs.
In your latest post, you say:
[quote=“captgrumpy, post:20, topic:122057, full:true”]
If you do not have your chart at maximum resolution you may not clearly see when the WMA5 makes the change–here it shows the block hit with lots of time to make the trades at the close of that block (trade between 2345 to 0000 hrs on my chart–gets close to actual closing time).[/quote]
Now you are saying that trades can be made in the last 15 minutes before the close of the signal candle.
So, which is it?
[quote=“captgrumpy, post:20, topic:122057, full:true”]
Since posting this plan I have changed the WMA5 setting to WMA 2–it shows the small peak clearer and spots the PTP up to 2 days earlier than the WMA5 I know you find this hard to accept because it goes against the normal–I mentioned at the beginning you would have to be prepared to do something different–well this is something different!!![/quote]
This may, or may not, be a significant improvement in the strategy.
However, with the exception of the watch-list used, I have attempted to set up a test of the strategy as you first proposed it. Making changes to the strategy while the test is still going on would totally confuse the results. So, I will ignore any and all tweeks to the strategy, while I am running this test.
I haven’t decided how long to run the test, but one of my objectives is to see all of the various things that can happen using this strategy – successful trades, failed trades, stop-outs, reversals, whip-saws, etc. – and get a feel for how often those things happen. So, this test will run for many days, at a minimum.
Let me digress for a moment, and deliver a mini sermon:
For anyone just joining this conversation, I’d like to point out that even a heavy-duty watch-list (30 pairs in the case of this test) can be handled with very little time spent each day. It’s entirely possible to ignore the platform, while it runs 24/7, and simply open it up for analysis and update once a day, for 30 minutes or less.
This test is currently running 13 positions (one position got stopped out since I last reported my metrics), and it’s currently showing 1,350 pips in unrealized profit.
In about 2½ hours, after today’s candle closes, I will spend half an hour, or so, reviewing my entire watch-list (which includes 13 pairs currently being traded, and 17 pairs not currently traded) to (1) look for new signals, failed crosses, stop-outs, etc., and (2) exit existing trades, and/or enter new trades, as those signals dictate.
Thirty minutes a day to make more profit than most intraday traders can make sitting in front of their screens all day long.
End of sermon.
[quote=“captgrumpy, post:20, topic:122057, full:true”]
There are two other items I’d like to mention—One is about stop loss setting that I wasn’t very clear on–as you know this a matter each trader has to deal with and come up with a good SL
plan that suits their style and gives the necessary protection. This is how I use the stop loss factor–When a trade is opened I enter details on a daily work sheet–I write down the maximum number of pips I am willing to lose if the chart goes the wrong way–if that number is reached the open trade is closed–take the loss and wait for the next PTP to open a new trade–this seldom happens because if the WMA2 does not cross the WMA12 the trade is closed–however there are rare times when the chart may go up a bit before starting down as it was supposed to -with the closing plan in place there is no panic if this takes place–I do set a stop loss well out just in case the chart takes an unexpected move against me. For the 1 day chart this SL is set at 400==seems high but I would rather lose that much than be wiped out.[/quote]
If I understand your stop-loss rules, you employ both a mental stop-loss (not entered into the platform) and a 400-pip catastrophic stop-loss (which is entered into the platform).
Do I have that right?
