Enter the market at any price

Discussion in 'Trading' started by buzz, Jan 22, 2006.

  1. buzz


    You can enter the market at any price and make money, as long as you know, where you are going in terms of getting out with a loss and profit

    True or false
  2. Both True and False.

    True: if it is a one time thing, but false if you want to do it consistently for a long time.

    False: impossible to get the moves to go your way. It isn't a 50/50 proposition as we would like to believe. True in the sense that if you are only betting 0.1% of your account, you are doing it only for academic purposes (writing a book) and not to make any money.
  3. acrary



    A random entry with good exit strategy will be profitable.
  4. True, as long as the underlying entry is in an instrument with a positive expectancy, derived from a median volitility range, and both entry and exit occur in this range for the time period traded.

    The trick is finding the order out of chaos as you have to rotate instruments as each one comes into a favorable range.
  5. buzz


    Buy on Mondays

    What if one buys on the open every monday on the open for the YM with a stop of 50 points exit would Wednesday close.

    Now how could we improve this, one way would be to only take buys above a 10exp moving avr. maybe the better answer could be a 20exp moving avr

    Or how about only taking signals if friday was down.

    Would anyone care to test it.
  6. Now you are shooting yourself in the foot by those constraints. The entry is no longer truly random, and you are asserting you know something more about the markets than the other participants.
  7. AKA market orders. :D
  8. buzz



    Yes, I agree with you. but we can do 2 test,

    1, only buy mondays and out on Wednesdays with no filters.with a 50 point stop

    2, same as above but add a moving avr as a filter or maybe a down day on fridays, it be interesting to see, random buys on Mondays verses the filter buys on mondays
  9. If the exit strategy is independent of entry, I don't see how this can be true.

    But I take it that "good exit strategy" implies that the exits vary with the entry; if that's the case, you'd still have certain liquidity and volatility requirements to allow those "skilled enough" to maintain profitablility despite a random entry.
  10. AKA keep on trading - don't worry about entries. :)
    #10     Jan 22, 2006