Posted by philosoraptor on 16th of May 2011 at 06:12 pm
Algyros, I agree that the system buys weakness and shorts/sells
strength in terms of
entering trades.
However, if you look at the charts of past trades, some longs
have
exited after
a period of relative weakness.
For example, the single-entry long trade of early July 09 to
early September 09 exited after a short period of weakness. Same
for the multi-entry long trade of late November 08 to late December
08. In both cases, price actually bounced soon after exiting so
perhaps the system was looking to avoid a 'crash' or similar in
exiting under those (weak) conditions.
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Algyros, I agree that the
Educational Question
Posted by philosoraptor on 16th of May 2011 at 06:12 pm
Algyros, I agree that the system buys weakness and shorts/sells strength in terms of entering trades.
However, if you look at the charts of past trades, some longs have exited after a period of relative weakness.
For example, the single-entry long trade of early July 09 to early September 09 exited after a short period of weakness. Same for the multi-entry long trade of late November 08 to late December 08. In both cases, price actually bounced soon after exiting so perhaps the system was looking to avoid a 'crash' or similar in exiting under those (weak) conditions.