I have been getting killed in oil since Christmas although it has not broken my m.a.. How have you handled drawdown in your system?
MM 500; Several ways to reduce DD, I am interested in most of them; even if it means giving up some % gains. a] Trade smaller/less leverage[epecially since ''getting killed since Christmas!!''; [looked on 1 yr crudechart,3 years-USO....................................] b] Not in a strict mechanical way; but PSAR helps,with discretion. But since you said system-Parabolic stop and reverse has reversed ,mechanical signal on 12-31/end of day signal, still long/ bullish . 50 dma still in sell signal, so get more measures,than that helpful ma. mm] More ways; but wisdom is- best to do your own research.
Read Goldmans Sachs oil coverage and trade the opposite way of their recommendation / prediction...it works !
============== Speaking of trade/fade [opposite], i keep plenty of ma/trendlines on my chart; daily USO chart actually has a mechanical PSAR [dot sell signal,on friday] Incorrectly wrote it was still a [psar ]buy But as reported correctly earlier, i dont use it mechanicaly; USO already has gone down 4 or 5 days in a row, simply wouldnt sell there ,even if PSAR says sell USO........................................
I seem to recall a $100 oil prediction a couple years ago when oil was at $40... I guess that's a suggestion that works until you bankrupt yourself and your extended family.
Thanks for the responses. Fortunately, oil has dropped from $50 back to $41. I am now sleeping better.