System enters too soon

Discussion in 'Strategy Building' started by hedron, Jun 9, 2015.

  1. hedron

    hedron

    What does that mean? I remember reading about what it meant in one of Dr Bandy's book, but I can't remember and couldn't find it by skimming through.
     
  2. R1234

    R1234

    probably saying that it tries buy a dip or short a spike prematurely ie. wait for the rsi to be below 30 or above 70 for a second day in a row before pulling the trigger.
     
  3. ::shakes head::
     
  4. bone

    bone

    It means that the system requires a great deal of refinement. Many systems try minimize premature trade entry by requiring at least one additional signal confirmation test. For my own spread trading system, we have four conditions ( or tests ) that need to be satisfied before an entry can be taken.
     
    hedron likes this.
  5. eurusdzn

    eurusdzn

    It might mean that noise and signal need to be defined and to wait for the signal.
    Trading the signal should produce a better result.
    Thats my guess.
    Maybe evaluate the quality of entry with MAE and Max profit and do the exit
    later.