Can you be profitable with random entry?

Discussion in 'Strategy Building' started by Tremaine, Jun 11, 2006.

  1. it appears a clear short because u rarely see a recovery after two huge long shadows at the end of two double tops, nevermind all the other bearish indicators..i think i only saw it happenin' when there's a lot of volumes or on news stocks...this is one of the most clear cut short set-up imo, especially if it is on sifs.
     
    #61     Jun 11, 2006
  2. Here's a possibly similar situation. What do you guys think these cases have to offer?
     
    #62     Jun 11, 2006
  3. Case 2
     
    #63     Jun 11, 2006
  4. yes, random entries would do just fine here, hee hee.

    jokes asides, i might be biased to open a long pos on both trades but there's a good chance it might go lower beofore takin' off again..if it does at all...of course i might be dead wrong as well, so i think i'd rather prefer to stay on the sidelines and wait for further more clear signals.

    u got the rest of those charts by a chance? :p
     
    #64     Jun 11, 2006
  5. Yeah. Heres the result for case 1.

    Both are ER2 5 min charts.
     
    #65     Jun 11, 2006
  6. Case 2 result
     
    #66     Jun 11, 2006
  7. yeah that set-up is quite common on gappers up soon after the open...shootin' star often present with a similar pattern and the stock usually talkes off although it migh go lower first. the first went lower a bit as i thot
     
    #67     Jun 11, 2006
  8. The above are some of my favorite setups. Of course no two setups are ever *exactly* the same, but, the scenarios are identical in terms of the psychology involved.

    I always question when something is obvious - especially when statistics are used to prove a trading setup. In certain cases, statistics can be used to prove just about anything, but, peoples behaviours tend to be *slightly* more predictable...:)
     
    #68     Jun 11, 2006
  9. of course, but your second set-up is quite diff from the one bearbelly posted, it has a lot of bullish traits and the fact the double top is not exactly in line makes a very good case for higher prices.
     
    #69     Jun 11, 2006
  10. "Can you be profitable with random entry?"


    Yes - if you can give me up to 1 hour to trade from the random entry point in case I need it. :)
     
    #70     Jun 11, 2006