I backtested that system..in fact I am looking at it.. sure it was profitable.. you obviously didn't know how it was transformed when you put in a good entry..
No.. but it just drives the point home.. assuming everything is random its the exit that makes the difference..
Just to make it clear... I have been posting on this site for a few months now... and I have noticed a few things ... Almost every single person that opened a journal to daytrade was gone in a matter of weeks or months... just an interesting fact... Personally... all of my friends daytrading have either all quit or started position/swing trading.. --MIKE
you wont know how good your entry is until u exit.......so I also agree that the exit is much more crucial than your entry. Even if you enter a trade that goes agaisnt you with a good exit you should be out on your stop ( whatvever that may be a % of the trade, a fixed number, or a trailer ). What is a good entry anyways when at best you will hit your target ( actually hit your profit target not just get out at a profit) 50%< (ballpark) of the time......they are both very important IMO but I will give more weight to the exit.....
ok, how did you arrive at the conclusion that i am a 'day trader' ?? please, explain how what i state is a fallacy . a random entry system is not a system. you are merely managing your losses and hoping that one of your "random' entries is profitable enough to make up for the others that lose. yes, this does work, professional gamblers make their living this way. however, i prefer to trade statistical anomalies and other price factors to provide non random higher probability entrys. random entries is a losers game. furthermore, by definition, the random entry that is profitable is a "good" entry hence "good" entries are the key to winning the speculation game. best, surfer best, surfer
I dont want to turn this thread into a pissing contest... I have stated my points already... please Private message me.. if you want to take this further.. -- MIKE
this is called a discussion. it is what message boards are for. i am happy that random walk theorists trade the market, they create what i exploit. best, surfer
The point of entry is very important for me because it is the location where I have defined where my edge is. If my entry is based on a breakout from a congested price formation, then at any moment PRIOR to that breakout entry of mine, I have NO EDGE and therefore I am not in the trade. The market can whip and chop all it wants if it feels like it and all I do is sit on the sidelines and watch. But once price breaks out and crosses my point of entry, I get in because now, unlike before, the probability of price moving in some meaningful way favorably becomes higher than before my entry; which is my edge. This is not to say, by any means, that exits are secondary in importance in relation to entry. It is the full integration of all the elements that help propel your edge over the course of many individual trades. But having a good entry has definitely assisted me. Kermit
Just want to make one thing clear.... I agree that entries/setup are important.. and I do not advocate trading a random system.. But where most traders focus is on the entry.. they ignore the exit and position sizing. --MIKE