I look out for the fading trends for entry and exit both side. The equation I developed gives me edge of little time advantage of entry and exit signals before others. ( For exit thing I am still developing a code)
I have tried reading many books and infact read 30 books on trading and programming till now but most of them tells the same story. I don't want to sound like fool but I haven't traded with a stop till now. When ever I place a stop it always hits and whenever I don't have a stop I always win. But till now I was trading in a very small quantity 1 or 2 lots of futures and glued to the screen all the time, just few days back recovered my initial learning losses from the market . As I want to scale my game up I wanted to ask other professional traders. I agree that I am new to this game but I have learned a lot. I started with stocks but in few months I was able to make handsome returns on day trade on 15 minute chart. So I moved on to Futures. The number of trades depends on the signals from my system. Usually I have developed a strategy to enter at a smaller time frame and exit at a larger time frame as I was not able to control emotions as a newbie. Also presently I do maximum one to three day trades per day. if first is profitable I don't take up second or third. If first in loss then I move to second trade and if second also in loss I attempt a final trade to recover losses.
A sort of but actually I ride the trend in the same direction earlier than others. i was able to make a faster indications of entry into the trend. When my system gives me signal it is providing a faster time edge to ride the trend in the same direction.
Algorithmic Trading Winning Strategies and Their Rationale Quantitative Trading How to Build Your Own Algorithmic Trading Business Got both these, Thanks for your recommendation.
Yes bro, sometimes naïve things fascinates me. I am totally blown by your sense of humor. At least you are following this thread & I hope you will share something soon from all your experiences as a trader to enlighten me . ;-)
Well Creatorofmatrix, if you are fading trends then the opposite side of the range is your exit (more or less). On the other hand if you are trend following put a simple 50-period moving average on your chart and trail the freaking move until the end (close the position when the price drops below this average 3 days in a row for instance, for long positions, and vice versa for short trades). As always, keep it simple, you can earn a very good living trading very simple chart patterns, day in and day out. Cheers.