Exiting for a Trend System

Discussion in 'Strategy Development' started by ChrisMMM, Mar 27, 2007.

  1. I'm a user of trade station, and I've had some sucessful using my trend following system. The (2) markets that I want to beat, but I am not coming with anything successful are the YM, and the ES.

    One of the reasons why I believe this to be true is the the YM and the ES tend to be a bit choppier than others. Because my trend systems exits the position on weakness, I think that this choppyness sends false signals, so I'll end up exiting on a bar not in my direction only to have the next bar go in my direction.

    I've realized that if I program it to EXIT IN 10 BARS, I get fairly good results. However, when I add stops, limits and other jazz it ends up weakening the system.

    Anyone have some ideas for exits on these markets that have worked?
  2. Chris,

    Referring to your other thread, I would look at MFE and MAE to look at what often happens to your trade during those 10 bars. You will learn a lot about appropriate exits this way.
  3. Also,

    YM and ES are choppier and typically more difficult to design systems for than markets like the ER2. Your results are no different than most other people's...
  4. Your system might perform better with the ag/food contracts that don't have overnight trading: i.e. hogs, cattle, coffee, sugar, cocoa, cotton, OJ & lumber. The trends in those markets might behave more smoothly for your system because those contracts are dominated by commercial users. Give them a try.