What a stupid, moronic waste of computer power. The past has nothing to do with the future. This is where your head should be, not in the past. http://www.forbes.com/sites/stevenb...o-bring-google-style-search-to-stock-picking/
That computer technology looks really cool. I didnât realize that there were so many price disparities and things in the market that could be found with Google style questions. Itâs like the Ask Jeeves of financeâ¦
There is no initial stop loss because you have to stay with the open position until the MA reverses. Since price can go anywhere, this was the only way I was able to have it be consistent in my testing. THat is interesting. It woul dkeep you out of a trade if it were to keep going down. It would also reduce the total increase if the trade does go in your favor. These may negate each other if you apply this rule. [/quotte So that is suggesting that it might keep going up? [/quote] There are some trades where this would work against you. The price gives you the signal, then goes down, and then goes up. That's why I only had the exit criteria mentioned. I think it's awesome that you are contributing to this thread. That is ehat I wanted tfrom this and I am glad you are making additons to the system that may cause it to be more efficient.
A HL doesn't lead to a refersal. Price makes higher lows all the time in uptraends. What I was saying was that if price is going up and then starts going down, I do not know if it is going to become a higher low and therefore a good point to trade, or if it is going to keep going down such that it doesn't een make a higher low and there it would have not been a good point to order, which is why I have to use the moving averages. I had a look through that thread when it was first posted and didn't really seem to see any rules that I would be able to apply to my trading.
What about using a hard stop and averaging down? Imagine you have a hard stop of 20 points and you add more every 5. So if price goes against you the full way, you'll have a $400 loss instead of $100. But, if price goes against you 5 and then goes in your direction 20 above original entry, you'd make $225 instead of $100. If price goes against you 10 and then goes in your direction 20 from median entry, you'd make $300 instead of $75. So there are seven conditions: - a beginning small loss would still be a small loss - a beginning medium loss would be a bigger loss - a beginning large loss would be a quite larger loss - a beginning small win would still be a small win - a beginning small win if price goes against you and then goes in your direction would be even bigger - a beginning win for price go go against you a bit and then go in your direction would be a large win - a beginning loss where price goes against you and then goes back up to a level that would have been a loss before becomes a small win This only works if you don't lose to your entire loss often. But since the average changes at different points there's no guarantee that all losing trades will be full losing trades. Your perfect situation is where price goes against you and then goes largely in your favor, tripling or more your win. So if price goes against you 10 and then in your direction 80, instead of making $750 you would make $2,250.