inandlongs line in the sand system

Discussion in 'Strategy Development' started by profitseer, Sep 17, 2002.

  1. The simplest system I know constructs a horizontal line at the current price and is long above it and short below it.
  2. If I knew how to copy right I'd put this sytem together for you, how do you copy posts?
  3. I'm trying to copy the whole text, and then copy some replies and make it all dark, How do you do that?

    I'm trying to start a thread because I want to talk about inandlongs system.

    This is why people like me should not be allowed to use computers.

    Everyone else can make these quotes from other posts all dark and then comment on them, and they can string multilpe replies together.

    What is the strategy for this kind of posting system?

    Anyway, inandlongs system currently holds the title for simplicity, but I want to try to out do him. Did I tell you I was short es from 1129? Where is it now? And that was trading the line in the sand system. I think I need to work a little on the exit strtategy. I covered at 1107 and then gave up on the system. Where did you say es was today? I traded it, but didn't pay much attention.
  5. Attached picture ( DJ Eurostoxx 50 futures ) shows this system's possible weakness. Nice overtrading!

    Without profit targets this system is incomplete.
  6. If you draw a line in the sand, you could get whipped long to short, short to long 20 times before the price diverges significantly from your initial entry.

    I think this strategy would work very well in extremely overbought or oversold conditions. When you have a hunch the market is ready to whip back a long way.

    You wait to you get near a resistance point. You chose a pivot and you are short below, long above. Only problem is this system has no exit criteria.

    extremely easy system to manage and your potential drawdown per trade is extremely small. But the potential for many losses in a row is high.

    If your line in the sand was NASDAQ 5000 you would be very happy with this system indeed:)

    I think this technique will go in the tactical toolbox. Not a complete trading system in itself but a cunning technique for certain times.

    Well done in and long. This system is pure zen in its simplicity.

  7. Just looking at some daily charts, and thinking about exits for this system. It may be as easy setting a profit target of say 30 points. When your profit target is reached you simply make the price 5 points under the current price your line in the sand.

    This allows you to continually profit from volatility, without giving back too much paper profit. Having extremely low commission rates will help make this system work. Slippage would be less on the ES than the NQ.

  8. Also setting your new line in the sand just under obvious support points will reduce the chances of getting whipped back and forth too often, as when they break through it is likely the price will move across them fast rather than churn as they may over a range bound area.