1. enter a market order 2. place stop 10 ticks away 3. every minute raise stop 1 tick You say, "Yes, but profitseer, have you tested this sysyem?" YES! I have tested it all the way back to the days when they were asking, "e mini? What's the e stand for?" It has tested out at 100%. Never fails. You can bet your wife on it. The system guarantees that you will never be stuck with a losing position for more than 10 minutes. Well, my minute is up. Gotta go move a stop.
Do you buy, or sell with your market order? Or flip a coin first? Your system certainly lives up to the axiom to cut short your losses and let your profits ride. -Eric
What this system says about the true simplicity of trading is hall of fame material. Outstanding work profitseer. I want to party with you cowboy. If you ask a lot of questions about this "system" you're not getting it. Oh yes, I think it is a real system, but there is much more to learn from it than the three steps 'seer posted. Awesome man!
I tested such a system once, or similar. You still have the issue of selecting the direction (long or short). And it does make a big difference. If you are against the active trend you will hit several losers. So, just add a trend detector to the steps (step 0) and you will increase your odds a lot. Otherwise this system will die in a down acceleration (while you're long) and keep rentering after being stopped out. So some rules missing. But anyway, there is something to this. SIMPLE IS GOOD. tntneo
1) Pick any trading vehicle with good volume 2) Draw a horizontal line at the current price 3) Be long above the line and short below it 4) Use the 10 tick (or whatever) trailling stop You don't need trend finders, indicators, Level II... just trade. Look at a chart of anything..... how long does it stay at any one price, or cross the same price repeatedly more than a few times until it runs one way or the other. You must be in to win!
pity the original poster does not address the main flaw. if you are against the active trend you are toast since you keep reentering and be stopped out. On the other hand I do know 'simple is good'. I use one method which is very simple (everything being relative right?). And in fact the entry level is not that important. There are safer zones than others, but no need for very complicated entry scheme. important thing is detection of active trend (I don't care how you do it, if you don't do it you need market neutral strategies, and what is described here is NOT market neutral). and second important (equal level I guess) is the exit scheme. anyway exit being much more important than the entry scheme. you can make it very complicated, and if it works for you : excellent. that's what counts. but you don't have to make complex and hard to follow, sorry. we all agree that following the method and having the discipline is the hard part (well once you found a method you feel confortable with.. I admit searching for the method is very hard). tntneo
I thought of this same idea a while back. In testing, I used the opening price as my flip point since on trend days it can open and go straight up/down without too many crosses of the open. Things went well until I found out some days the price congested at the flip point causing havoc. I suppose you could put a channel around it and move it as necessary. I bet this idea would make a good system with a little work.