Time exits are a legitimate way to test entries. You can pretend they're not but that will only make you look even more ignorant about backtesting. With your "model," I was testing going long at the 0 to 7 transitions and exiting 5 days later (which worked better than 1,2,3, or 4 days). I've told you several times before why I used time exits instead of the 4 to 3 transitions called for in "Tomorrow's Paper Today." And that reason is, your "model" is so BROKEN that the transitions from 4 to 3 are VASTLY outnumbered by the 0 to 7 transitions... enough to make the average trade last for YEARS. But you know that already and are just trying to confuse people with red herrings. If your "methods" are so profitable, what happened to your promise to your former IBD group to turn $10 thousand into $1 million in 100 days and post updates on ET? Let's see you obfuscate your way out of that by blaming someone else...
Jack, this is confusing me. Shouldn't one start to look closer at the subsequent bars after a VE for sufficient data set that signals FTT, one of which is not reaching the new LTL? Do I understand correctly? TIA - SK0
Sure, VE is always an even number like 4, 6, etc, all after 3 of the 1, 2, 3. The earliest FTT occurs after 3 or an new 3. At aVE you can pinpoint the potential location of the FTT many bars ahead. After that location (the FTT is a point 1) you sketch in the next 2 and 3 as well. On a log of four pages you can rough out the whole day as well. It is a good idea to know what is coming down to pipe at all times. Most of trading follows an orderly series of events. THat is why annotating in a uniform manner (knowing automatically what to do) takes all the unhnowns off the table. The purposeful objective of learning to trade is to fill your mind (as in learning to read) at the several locations where the component parts of "market reading" will become located. This has an effect of organing the mind (or building it) to a fully differentiated space. So a "VE means hold" is a very true statement. In a few bars after a VE price having retraces and then advanced comes to a place where more money will be made or the maximum of the fratcal will be made and at that time. It is always good to know exactly what is going on. This is the theme that we are working towards to finish up Gucci becoming an expert. Once the process of learning is done a person's mind automatically trades, correctly, every move of the market. Noticably is is done unconsciously at first, then it becomes more consciously known. As you see there is much anger and ire on the part of people who are unequipped and have a deep deep need to blame others for their undifferentiated minds. A "shoot the messenger" so to speak coupled with a desire to invent a superior approach. To make this all automatic, as in an ATS, the components and assemblies are vert different than the CW coding given by platform adjuncts. CW people do the CW coding. It is vastly different than coding for the Pool extraction paradigm which is based on a core and shells of coding. The outer shells have "continents where a given thing is done. with many continanets, you just go to the correct one for that market operating point. This is not know to quants or CW coders. As a consequence of no foundation and no building plocks they do not get the potential that is possible. We are not shooting for 200% a year or 0.13% a day type performance. This is a paradigm shift type thing.
Here is my messy work so far. I do not have access to volume, so I try to retrieve it from the volatility of the price bars on both Dax charts ( 5 and 2 min.). I've monitored Dax for 2 years now, so its behavior seems to be familiar to me.
Sorry to interrupt the flow... This just speaks true to me and without a doubt (and unhidden) this is where I currently reside. The unconscious continues to bang away at the conscious. It is a strange thing to verbalize. At times change approaches (or approached) and while my senses are aroused, my mind is not aware what is causing (or caused) it. Evidence I can hardly describe it. A very strange wonder (I endeavor to allow certainty and timing to seek their way out from the unconscious).