Hey Guys I have been working on a secondary trading strategy that will be targeting small to mid-cap stocks in a strong bullish trend. My current results have been average at best. I put little value in back testing so I test strategies only in live markets with a very small amount of cash. I was looking for some opinions on entries. In one sample I have been entering these rallying stocks on a small pull back and on the second sample I have been entering immediately regardless of pullbacks. The immediate entry sample size has been outperforming the pullback entries consistently for the last 12 weeks. How do you guys approach your entries on a very strong up trending equity? Any help would be greatly appreciated apo
If I have not already entered on a pullback, I never chase markets, risk way too extreme, way too many stocks available than be risking more than normal. Not backtesting is like going to Vegas and betting on the Black or Red, but at least you get a free drink to cry into.
I do back test, I just take it with a grain of salt, ive become a millionaire many times over when backtesting strategies but they never seem to pan out that way in real life. That why I test out a new strategy for 12-18 months wit a small cash amount before sizing up. I just don't want to confuse a pull back with a change in direction
I do back test, but I just don't have faith in that system until I traded it with real money even if its only $1000
If I automate my algo and computer trade, why would back test and going life produce different results? Maybe we should do what Handle did: he automated his trades. However, when I asked my broker if I could do that with their system the answer came back no.