IWM Robot Clarification Question

[grems8544]

Forgive me if this has been covered -- I couldn't find it in the Advanced Search nor in the documents that I have for the robots.

The IWM Buy/Neutral settings were BUY if below $85.08 with a SL of $83.26. IWM finished at 83.37 but was below $83.26 for a good chunk the last hour. I know the backtesting only looks at the close of the day, not the intraday.

Is the signal still valid if the SL is hit intraday? Meaning, if once the SL is hit intraday, does the model move to the sidelines and begin to look for a short entry intraday on the same day? Or, since intraday is not considered in backtesting, is the end of day price the only price that matters for the change of signals?

(tipping my hand here, I entered another position in IWM/UWM on the long side near the close as soon as we climbed above the SL level).

Thanks,

pgd

[grems8544]

Is the signal still valid if the SL is hit intraday? Meaning, if once the SL is hit intraday, does the model move to the sidelines and begin to look for a short entry intraday on the same day? Or, since intraday is not considered in backtesting, is the end of day price the only price that matters for the change of signals?

Pascal,

Just saw that you updated the IWM message. I think that the right answer is that the stop takes you out for the day (e.g., do nothing after the stop), and then wait for the next trading day. Put another way, the robot does not change directions intraday.

[TraderD]

Pascal,

Just saw that you updated the IWM message. I think that the right answer is that the stop takes you out for the day (e.g., do nothing after the stop), and then wait for the next trading day. Put another way, the robot does not change directions intraday.

If the trade direction for tomorrow is still long (per Pascal's guess), is it possible that the IWM stop ($83.17) is actually a good R/R buy entry price? In that case, I would assume that an intraday robot (if one existed) wouldn't let the original long trade get stopped out.

$.02,

Trader D

[Pascal]

The trailing stop is the last line of defense, especially in an automatic system.
So my guess is that even an intraday robot would not overrule the last line of defense.
Better be out and reassess.


Pascal

[TraderD]

The trailing stop is the last line of defense, especially in an automatic system.
So my guess is that even an intraday robot would not overrule the last line of defense.
Better be out and reassess.

Pascal

Pascal, if I understand you correctly, your point is that even an intraday robot would need to make exit decisions solely based on a line in the sand (the trailing stop). The question I have is, when would re-assessment of a new entry be done by an intraday robot? Is it not reasonable for an intraday robot not to wait till EOD but determine within a short period of time (after the trade exited) that the next trade provides for a desirable re-entry at the then-prevailing price?

Trader D

[Pascal]

Look, I do not know.
Why don't we discuss an intraday robot when we have one?
I believe that an intraday robot would wait for the last 30 minutes to take decisiosn, because this is when many large players would position.


Pascal

[TraderD]

Look, I do not know.
Why don't we discuss an intraday robot when we have one?
I believe that an intraday robot would wait for the last 30 minutes to take decisiosn, because this is when many large players would position.

Pascal

Personally, I'm actually glad we don't have answers to everything just yet, otherwise it'd be a sign that the technique could be subject to easy replication and self-destruction by others...

Thanks again for the candid answers.

Trader D.