lessarda -- I would say that it would be a little silly to use
the scale-in system and decide to make the initial trade a higher
percentage and so on. Then you're not playing the system that
matt has developed. You're using his system as a starting
point to make up your own system. You can do that of
course. But matt has put many months of work and thought into
it, and I'm sure he looked at other scale-in percentages. If
an 80% - 20% scale-in was more profitable, that's what it would
be.
It doesn't make much sense to be second-guessing the system and
wanting to change it, before its even been released.
What makes more sense to me, is to use the scale-in system and
use more capital. That way you're playing a aystem with 96%
winning trades, which is as stress-free as you're likely to get,
and with more capital in play you'll get returns closer to the
singe entry system. Or use SSO. I would not be afraid
of degradation in the relatively short time spans the system holds
for. But one can also go short SDS for longs and short SSO
for shorts.
lessarda -- I would say
SPY Multi Entry System trade examples
Posted by Michael on 25th of Apr 2011 at 08:16 pm
lessarda -- I would say that it would be a little silly to use the scale-in system and decide to make the initial trade a higher percentage and so on. Then you're not playing the system that matt has developed. You're using his system as a starting point to make up your own system. You can do that of course. But matt has put many months of work and thought into it, and I'm sure he looked at other scale-in percentages. If an 80% - 20% scale-in was more profitable, that's what it would be.
It doesn't make much sense to be second-guessing the system and wanting to change it, before its even been released.
What makes more sense to me, is to use the scale-in system and use more capital. That way you're playing a aystem with 96% winning trades, which is as stress-free as you're likely to get, and with more capital in play you'll get returns closer to the singe entry system. Or use SSO. I would not be afraid of degradation in the relatively short time spans the system holds for. But one can also go short SDS for longs and short SSO for shorts.
Michael, I really like your idea
Posted by sethbru on 26th of Apr 2011 at 01:50 am
Michael,
I really like your idea of shorting the leveraged inverse for each position entry to gain on their decay too. Nice!