No changes in signals or trades.
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No changes in signals or trades.
No changes in signals or trades.
[QUOTE=pdp-brugge;23421]Last week I finished my renewed back-testing. I have used the warmest weekend of the year here in Belgium to write a summarisation. I post it here. As with my previous papers, I look forward to any feedback. I am still very eager to learn and improve my trading.
PdP[/QUOTE]
Hi PdP,
A question please on you latest excellent paper.
If you are stopped out of a position on a stop loss signal but the model remains on a buy signal would you re-enter on the following day ?
Thanks in advance.
Trev
Trev,
Yes, if the signal is still valid, I open a new trade on the day after the stop-loss occurred. On several occasions the stop-loss occurs at times that the MFs are changing. If a stop-loss happens, most of the times it is beneficial because larger loss is prevented.
PdP
[QUOTE=pdp-brugge;23442]Trev,
Yes, if the signal is still valid, I open a new trade on the day after the stop-loss occurred. On several occasions the stop-loss occurs at times that the MFs are changing. If a stop-loss happens, most of the times it is beneficial because larger loss is prevented.
PdP[/QUOTE]
PdP,
Thanks for that.
If the original buy signal was 24 days ago would you still re-purchase after a stop loss if the instrument is still on a buy signal ?
Trev
Yes. I would follow the system. The most important thing that I have learned since I started trading is never to be emotional. Very hard to master but very necessarily. Ignoring a valid signal just after a stop-loss is emotional. In my back tests I found several series of "small" stop-losses followed by a huge win. You never know if you take a signal what the result is going to be. Because of that uncertainty you need stop-loss setting. That is the mean reason why I did all the work to calculate the ideal stop-loss settings. The distance between the initial start of trade and the initial stop-loss level is the risk I take per trade. By optimizing that risk level it is possible to achieve in the end very nice returns.
[QUOTE=pdp-brugge;23444]Yes. I would follow the system. The most important thing that I have learned since I started trading is never to be emotional. Very hard to master but very necessarily. Ignoring a valid signal just after a stop-loss is emotional. In my back tests I found several series of "small" stop-losses followed by a huge win. You never know if you take a signal what the result is going to be. Because of that uncertainty you need stop-loss setting. That is the mean reason why I did all the work to calculate the ideal stop-loss settings. The distance between the initial start of trade and the initial stop-loss level is the risk I take per trade. By optimizing that risk level it is possible to achieve in the end very nice returns.[/QUOTE]
Just to be certain, in your paper you state that you take the trade, following a signal change, the following day at the open. Do I take it that you also take ALL trades after a stop loss if the original signal is still valid.
(After 22 years full time trading I fully understand your comments about emotional trading) :O(
Trev
Yep, I take all the trades after a stop-loss and if the signal is still valid.
Of course: the filters keep on playing.
Sometimes the filters force me to close a trade because the odds or not in favor to continue a trade once the filters states the signal is no longer valid.
An example: let's state that at a certain time a signal came to buy XLF because the signal in the XLX-files of the EV-website changes to "Bought. The filter for a XLF Bought signal is that Combo-MF may not be in Cash. If Combo-MF is at that time not in Cash, I will take the trade. In during that trade the Combo-MF goes to Cash, then I will close that XLF trade.
[QUOTE=pdp-brugge;23446]Yep, I take all the trades after a stop-loss and if the signal is still valid.
Of course: the filters keep on playing.
Sometimes the filters force me to close a trade because the odds or not in favor to continue a trade once the filters states the signal is no longer valid.
An example: let's state that at a certain time a signal came to buy XLF because the signal in the XLX-files of the EV-website changes to "Bought. The filter for a XLF Bought signal is that Combo-MF may not be in Cash. If Combo-MF is at that time not in Cash, I will take the trade. In during that trade the Combo-MF goes to Cash, then I will close that XLF trade.[/QUOTE]
Understood thanks :O)
Trev
Due to a technical issue with my Reuters Datalink, I am not able to prepare my daily routines.
Once this issue is solved, I will post the daily update.