This post was contributed by a guest author, and does not necessarily reflect the views of Richard or MovetheMarkets.com
So let the smacking of head with hand begin as I discover in Multicharts that the Channel Breakout LE and SE also have an indicator written for them as well.
The Signal triggers a long or a short based on when the the current bar is pierces the last high or low of a period of time.
So if you add the signal, I think the length default is 20, you can add the indicator Price Channel and set the length to the same and give it a view. Neat!
Paper Trading today consisted of going up to ~+$1000 and back down to ~+$400 on one contract per trade.
ie meaningless.
RWD
Like before I need conditions of when to take profits and stop out. Likely it will be when in a trade and a plot cycle forms, go flat and wait for the next signal. There are sessions where the drawdown will get extreme.
I need to write the means to plot trendlines between the long and the short or wrap them in a signal so I can get some historical perspective on all this.
I am considering having a Day Trading Stop as well.
As P/L goes +, if it retraces and is High -$N, then stop for the day.
If P/L goes -$N, Stop for the Day. I am ok with this.
Hopefully I have the picture setup here correctly, dont want to raise the ire of the Richard, the Keeper of Ways. :)
E.
This post was contributed by a guest author, and does not necessarily reflect the views of Richard or MovetheMarkets.com
January 24th, 2008 at 7:04 am
Totally fascinating stuff, Eric. I’ll be curious to see how that does over time. There’s that old saying…if it is so well known (it came with Multicharts) and was a sure thing then everyone would already be using it. After losing a small pile on futures I’ve developed a cautious eye (if that goes too far then I may be one of the *many* people giving commentary and not trading).
I’ve tried a whole bunch of stuff and have gone full circle back to Bill’s entry criteria. . I’m going to spend a few days working on a modified stop/trailing strategy to use in conjunction with that entry but at this point Bill’s “conservative” style is sounding good to me.
January 24th, 2008 at 9:05 am
michael: u don’t need to lose between 30 and 60 grand to comment…u just get more readers that way!