But it's not. You're talking about single entries. You aren't talking about a strategy designed to do both, scale, or, separately, single entry.
No, it's implemented as single entries because I don't have enough scale to require it to be implemented as multiple entries. If I had enough capital to require multiple entries, there is no reason why it could not be implemented in that way. The entry price is the optimal price, but you can enter at any price between the optimal price and the initial stop. In that sense, the strategy refutes the "don't average losers" rule.
Basically, the strategy says "If price X happens by time Y, enter". If that logic plays out, there is no reason why you could not enter a long trade at a lower price than "X", if your trade experienced an adverse excursion. Yes, if you were entering long and price blew through "X" and just kept going, you would not be able to enter at "X" minus however many ticks the adverse excursion encompassed. So, in that sense, sometimes you would be unable to scale into massive positions. But, on the plus side, since at any given tick of the ES you can trade upwards of 1000 contracts, that's hardly an issue.
Look, as I said before, I don't determine what does or doesn't constitute a valid trade trigger, the market does. You have to take your ego completely out of the equation. If the market says "Go short" or "Go long", it's all the same to me. Short, long, whatever, as long as it makes money, who gives a shit?
The market would never ever say to anyone that the stop should be 50 points lower.Can you please explain how that could be or what you look at to get this idea?
TY for your patient answers. Would your algorithm lend itself to assigning a strength to your trigger?...is that what you are optimizing?
ES
The algorithm "should" work in any market which fluctuates, which is pretty much all of them, although, of course, that needs to be verified.
For the time period in question, 60% long and 40% short. However, the average gain per trade has been approximately equal for both longs and shorts
TY for the responses!
Yes, I have been able to discern variations in the strength of the signal and that is the basis of my optimizations.
I BELIEVE that these optimizations have an objective basis in reality. I HOPE that that belief is accurate and that future market action will display similar characteristics.
The underlying assumption of my trading strategy is "when people or institutions with capital believe they can profit from entering a trade, they enter it without delay".
Does that seem like a valid assumption? Seriously, you tell me if it seems valid because it seems valid to me, but maybe I'm missing something. Believe it or not, from that one assumption, one can deduce an entire trading strategy.
I have enough information to know how you are trading and thank you for sharing.
Since you are swing trading and entering as you do...it now becomes how you exit I believe.
ES
P.S. I think a trading statement would be the best addendum to your resume, but try for a DD of no more than 15% in year two....you can do it....go for perfection.
Quote from logic_man:
TY for the responses!
Yes, I have been able to discern variations in the strength of the signal and that is the basis of my optimizations.
I BELIEVE that these optimizations have an objective basis in reality. I HOPE that that belief is accurate and that future market action will display similar characteristics.
The underlying assumption of my trading strategy is "when people or institutions with capital believe they can profit from entering a trade, they enter it without delay".
Does that seem like a valid assumption? Seriously, you tell me if it seems valid because it seems valid to me, but maybe I'm missing something. Believe it or not, from that one assumption, one can deduce an entire trading strategy.
The market would never ever say to anyone that the stop should be 50 points lower.Can you please explain how that could be or what you look at to get this idea?
Never say never.
Seriously, who are you to dictate to the market what is and isn't a valid stop? Unless you are God Almighty, you don't have that authority.
I've also had initial stops 3.25 points away, so it's not as if they are all 50 points away to start, that was just an extreme example.
You have to listen to what the market is telling you, not what you want the market to be telling you or think the market should be telling you.
Think of the market as a dream. A dream has its own logic and when you are awake you might think to yourself "Man, that was a fucked up dream I had last night". Well, the market is that fucked up dream and unless you let it take you where it wants to go, just like that dream, you are unlikely to succeed as a trader. I don't know if I'm telling you something you don't already know or not, but what I am telling you is the absolute truth.
Don't tell them it's coded. Tell them it's discretionary and based on an intuitive read of the markets.
Quote from southbeach4me:
You try to get a job as a trader at a firm, they will without a doubt, ask you for the code to your strategy to "make sure it fits their business model" and then they will STEAL it and they don't need you anymore. You're better off trying to raise cash(couple hundred thous) via a rich friend( attorney, doctor, etc) and starting a small hedge fund.
You take your profitable ES strategy to a firm,......U can kiss it goodbye!
