I don't advocate leveraging, but I'm in agreement with Tom that
I may incorporate leverage into the scale in trades say the 3rd or
4th entry, vs using leverage on the 1st entry.
Also here's a quick video I made, basically it shows that the
SPY tends to gap, however large gaps generally don't fill right
away and you can trend for a bit. I hope it doesn't this
time, but the potential is always there.
Anyway, I'll be gone the rest of the afternoon and won't be back
until after the close. Since Olivia was a Breach baby, she
had some minor hip displasia that we have an appointment to check
out today at 1:30 CST, many times this goes away a couple weeks
after birth and hopefully that's the case this time around,
otherwise we will have to put her into a cast for a couple months
to push them back in place.
My daughter had the same thing when she was born. Spent 10 weeks
in a splint. Not fun but, she now has three boys that I like to
refer to as my personal football team.
But with the system, shouldn't we just ignore these gap downs
and just trade the system? I thought that was the whole point
of a mechanical trading system, you follow the signals and
therefore take the emotion out and ignore other technical factors
such as gap downs.
Yeah, just follow the signals, but he's just pointing it out as
a possibility. The video shouldn't persuade anyone not to take the
trade. Not taking the signals would fall solely on him/her.
matt was just showing how the trade might unfold because of the
gap down today, that it might go lower before reversing up.
And that this is one reason to not use extra leverage on the first
entry, but maybe on later entries. He was not
suggesting doing anything differently with trading the system
because of gaps.
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SPY comments, and misc
Posted by matt on 24th of May 2011 at 01:48 pm
I don't advocate leveraging, but I'm in agreement with Tom that I may incorporate leverage into the scale in trades say the 3rd or 4th entry, vs using leverage on the 1st entry.
Also here's a quick video I made, basically it shows that the SPY tends to gap, however large gaps generally don't fill right away and you can trend for a bit. I hope it doesn't this time, but the potential is always there.
http://breakpointtrades.com/jing/2011-05-24_0907.swf
Anyway, I'll be gone the rest of the afternoon and won't be back until after the close. Since Olivia was a Breach baby, she had some minor hip displasia that we have an appointment to check out today at 1:30 CST, many times this goes away a couple weeks after birth and hopefully that's the case this time around, otherwise we will have to put her into a cast for a couple months to push them back in place.
My daughter had the same
Posted by cal1 on 24th of May 2011 at 07:25 pm
My daughter had the same thing when she was born. Spent 10 weeks in a splint. Not fun but, she now has three boys that I like to refer to as my personal football team.
Keep lookin up....
Gap downs, etc
Posted by bigpun on 24th of May 2011 at 02:07 pm
But with the system, shouldn't we just ignore these gap downs and just trade the system? I thought that was the whole point of a mechanical trading system, you follow the signals and therefore take the emotion out and ignore other technical factors such as gap downs.
Yeah, just follow the signals,
Posted by cw12 on 24th of May 2011 at 02:27 pm
Yeah, just follow the signals, but he's just pointing it out as a possibility. The video shouldn't persuade anyone not to take the trade. Not taking the signals would fall solely on him/her.
matt was just showing how
Posted by Michael on 24th of May 2011 at 02:25 pm
matt was just showing how the trade might unfold because of the gap down today, that it might go lower before reversing up. And that this is one reason to not use extra leverage on the first entry, but maybe on later entries. He was not suggesting doing anything differently with trading the system because of gaps.