One more question

Discussion in 'Trading' started by michael21, Sep 27, 2011.

  1. I've asked numerous questions but here's one more.

    I have a good technical system that I should get in only when 4 things cross pretty close to at the same time.


    I keep getting in at bad in and day out it is the same thing. I get in 10-15 minutes late...Why? and more importantly how do I stop this?

    They're not even good signals. Looking back it's always I got in where?????

    Best advice gets my appreciation.
  2. just get in 10-15 minutes before

  3. wildshoe


    maybe post your system? i do'nt know...

    with systems like this you kind of need to "predict", using price action, volume, and other technicals, you will be able to predict the market..

    have you done any backtesting?

    4 lines crossing is quite alot to wait for, generally speaking by the time you have 4 technical indicators in agreement, you are too late to the party....the wolves will gladly fade your trade at that point...

    try and simplify...try and work it down to 2 lines crossing when a certain indicator is above 0 or when price has been in a trend or whatever...4 lines crossing is just too strict, its rare to get opportunities like that, and when they do come, you want to be earlier rather than later....

    try working down onto a smaller timeframe with a similar system....some systems are "too slow" on a 30m chart, but they can work fine on a 1m chart....
  4. baro-san


    One approach is to wait for confirmation after you get the signal. This is probably your case, and you get in late.

    Another approach is to enter on the signal and exit if you don't get the confirmation. You'll probably get several false entries, but you might be better positioned on good entries.

    If you have a viable and consistent system you should be able to optimize your entry at the best moment between the two extremes.
  5. wildshoe


    maybe scale in slowly as your signals cross....
  6. LOL
  7. all great replies - esp the one re entering 15 mins before lol. anyways re your 4 indicators lining up, in reducing them down to 2 or even 1 it helps to look at what type of indicator it is - for ex. are you using 2 mean reverting indicators and 2 trend indicators - if so pick one of each or just just one period.

    whenever i see people (not here) post charts w/ rsi, stochastics, bb's, etc. i just cringe b/c this person is looking at the same thing 3 times and there's no value added - in fact it's value subtracted b/c they fall into analysis paralysis.

    another possible idea is to ask yourself "what type of trades do i want?" and design your tactics around the strategy rather than the other way around for ex. i'm a trend trader so i only look at trend indicators (if at all).
  8. If you are really a trend trader, then what indicators do you possibly need? A moving average and that's it. Go with the Dow Theory: higher high and higher low = uptrend, lower low and lower high = downtrend. Pick a time frame that is most reliable to you with clear and visually striking trends. One hour time frame for example. It's simple as that, but obviously you are seeking complexity.
  9. +1.