Our new software has automated execution from TS, VB, C++, and several other programming languages. It also allows you to trade multiple systems and multiple accounts. It makes it easier to be disciplined and follow your system.
Sunny, In accordance to this KISS method, draw another line above or below the first line. This line is your exit. aphie
Or a trailing stop, or wait till close. My favorite is the LOD/HOD exit that only certain brokerages have. Gets you out at the exact extreme of day. :eek:
By averaging down when you're in a slump... aren't you compounding your losses? I try to increase size after a loosing day/trade/week and decrease size after a winning streak.
I agree with whomever the aformentioned guru is: backtesting is worthless. A "system" that works should work on all markets without optimization - it should spring from your head, and when you trade it, you will see that immediately it makes money. Of course you will monitor it for weakness, as all systems have a child like quaility to them [that is both their strength and weakness,] and adjust accordingly [if possible - I don't know if I could program a computer the "instincts" that I use when trading] nitro
jboydston, Jaan didn't say anything about averaging down, simply decreasing his size when in a slump. Your idea of increasing size after a losing streak is bass ackwards and very dangerous (sounds like the gambler in Vegas doubling his bet when he's down). As to decreasing size after a winning streak a good argument can be made for that approach as most people have their biggest losses after a big win streak.
Magna, Averaging down in futures and stocks are two totally different things -- indexes can't go bankrupt, and if they do, you'll have worse problems than just being dead broke. Some systems incorporate averaging down -- I know the system I am developing makes use of averaging down on my purchase of ES contracts as long as I am still above my stop. I think it is all about position management in this index-futures game. aphie
Backtesting and optimization are different things. I am not a fan of optimization. But what's the harm in seeing if a system can make money on historical data? How can the knowledge you gain be worthless?