re-entry rules

Discussion in 'Strategy Building' started by paulus, May 2, 2004.

  1. I agree that reentries are just a means to satisfy a certain urge to be right.

    Unless they are part of your system testing they are a bad idea.
     
    #11     May 3, 2004
  2. Hi Paulus,

    The bulk of what I use is based on reversals (divergence).

    However...some of those same divergence signals are in the direction of the overall trend...like a trend following system.

    For example...markets moves up strongly via whatever reason...pulls back a little...

    Within that price pullback...I may get a bullish divergence signal to go with the overall trend as the pullback stops and reverses back upwards.

    That's something many traders that don't use divergence signals can't understand.

    Simply, divergence signals can be reversals and continuation patterns depending upon the price pattern like as I mentioned above...within price pull backs.

    As for tight stops...that's particular to each trader.

    A tight stop to one trader may be 1 point.

    A tight stop to another trader may be 3 points.

    A tight stop to another trader may be 10 points...

    All based on their goal of the trade, chart intervals, type of trader (scalper, position, swing) being used et cetera.

    Reason why I ask to post a chart so I can see where your coming from instead of guessing.

    Also...when I said...

    ...the key to a good re-entry is your original entry...the duration between the original entry and the re-entry signal..

    If you can post a chart of a trade you got stopped out for a loss to only see it go your way...

    Without you on board...I can better explain it via your chart example.

    Much easier for me to annotate your chart or post something similar instead of writing my explanation.

    NihabaAshi
     
    #12     May 3, 2004
  3. paulus

    paulus

    NihabaAshi, thanks for responding,

    interesting idea that divergence can be used in a trendfollowing
    system as well;

    unfortunately i cannot post a chart of my own because i did not
    trade the last couple of months; i hopefully will do so soon;

    maybe you can post some charts of your own to demonstrate
    your thoughts on the subject, if that is not too much to ask ?

    kind regards,

    paulus
     
    #13     May 3, 2004
  4. Hi Paulus,

    The term trend following is a very general phrase to me.

    You have not defined it nor posted any charts...

    Surely you can post a chart or are you saying you don't have a data provider right now due to the lengthy absence from trading ?

    Lets do it this way...when you start trading again and are applying your trend following system...

    Post a chart of a trade that you feel a re-entry strategy would be beneficial.

    Simply, take it one step at a time...

    Don't worry about any re-entry strategy until you have an the original entry strategy defined.

    By the way...I've posted lots of charts here at ET before in the past...any of them can be used for a re-entry signal...

    Just do a search on the following key words:

    Candlestick NihabaAshi
    Divergence NihabaAshi

    My re-entry signals are based on candlestick patterns and divergence signals...they can occur as reversal signals or continuation signals.

    NihabaAshi
     
    #14     May 3, 2004
  5. paulus

    paulus

    thanks again NihabaAshi,

    i indeed did a search on re-entry signals but will use your
    'indications' to find out more about the subject;
    i will also take into consideration your advice;

    thanks again for being so helpfull !

    paulus
     
    #15     May 3, 2004