Posted by hurricanemalta on 11th of Aug 2011 at 05:50 am
Matt
Thanks for update here.
Ok a 6.5% stop loss is set on the single entry fine.The present
trade had a 1st entry at 130.22.I presume the stop would be
immediately set at approx 121.75 so EVEN INTRADAY we would be
stopped out by now.Correct?So a flash crash would definitely see us
out .
Moving on...BUT the multi entry keeps making entries below the
initial entry.In our present trade we entered ALL systems first at
130.22...BUT the last entry of the multi was 120.26 below the
1st entry stop loss of 121.75...I am sure you see my
point here already..we are stopped out but still making
entries.Obviously that is not your plan here so how will the multi
be effected.Bottom line we would still be taking entries
on the multi even when the stop for the 1 st entry has been
hit.I am wondering if you are thinking the rules for the multi will
NOT be changed at all and there will be NO stop for this system as
it's purpose is to enter at cheaper levels.
I am sure others have already thought the same thing as me
here.
hurricanemalta - yes that's correct, under the new rules, the
system would have stopped out for a 6.5% stop loss on Aug 4th at
$121.76 and would still be in cash from that date.
Regarding the multi entry version, logically it wouldn't have
taken the 4th entry because the price would have been below 6.5%!
Think about it, that's how the logic would work, once stopped
out below the 6.5% stop loss, no more entries would occur on the
multi entry system, regardless if it's the 2nd or 3rd or 4th entry,
doesn't matter, the 6.5% stop loss stops the trade.
Again as I stated in the video, there's more to the system than
this because some of the past trades, like the Mar 09 trade was
down 10% but ended up making 20% etc. Therefore once the system is
stopped out, it will look to re-enter the same long trade when
conditions are better.
anyway guys, I have to go to bed and see if I can get 2 hrs
of sleep, been up all night working
no not really. I gave you guys the stats, it only affects
3 trades and that includes this one. So it affects 2 previous
trades with 4th entries and this one.
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Obvious query others will be thinking too I guess.
New SPY system stop loss rules, etc
Posted by hurricanemalta on 11th of Aug 2011 at 05:50 am
Matt
Thanks for update here.
Ok a 6.5% stop loss is set on the single entry fine.The present trade had a 1st entry at 130.22.I presume the stop would be immediately set at approx 121.75 so EVEN INTRADAY we would be stopped out by now.Correct?So a flash crash would definitely see us out .
Moving on...BUT the multi entry keeps making entries below the initial entry.In our present trade we entered ALL systems first at 130.22...BUT the last entry of the multi was 120.26 below the 1st entry stop loss of 121.75...I am sure you see my point here already..we are stopped out but still making entries.Obviously that is not your plan here so how will the multi be effected.Bottom line we would still be taking entries on the multi even when the stop for the 1 st entry has been hit.I am wondering if you are thinking the rules for the multi will NOT be changed at all and there will be NO stop for this system as it's purpose is to enter at cheaper levels.
I am sure others have already thought the same thing as me here.
Thoughts?
Thanks
hurricanemalta - yes that's correct,
Posted by matt on 11th of Aug 2011 at 06:04 am
hurricanemalta - yes that's correct, under the new rules, the system would have stopped out for a 6.5% stop loss on Aug 4th at $121.76 and would still be in cash from that date.
Regarding the multi entry version, logically it wouldn't have taken the 4th entry because the price would have been below 6.5%! Think about it, that's how the logic would work, once stopped out below the 6.5% stop loss, no more entries would occur on the multi entry system, regardless if it's the 2nd or 3rd or 4th entry, doesn't matter, the 6.5% stop loss stops the trade.
Again as I stated in the video, there's more to the system than this because some of the past trades, like the Mar 09 trade was down 10% but ended up making 20% etc. Therefore once the system is stopped out, it will look to re-enter the same long trade when conditions are better.
anyway guys, I have to go to bed and see if I can get 2 hrs of sleep, been up all night working
Q: to Matt on New rules: Can a NEW SHORT TRADE come as a 3rd, 4th below -6.5%
Posted by cubby on 11th of Aug 2011 at 07:43 pm
New rules: Can a NEW SHORT TRADE come from a 3rd, 4th below -6.5%?
Thank you
no, remember the system only
Posted by matt on 12th of Aug 2011 at 02:02 am
no, remember the system only shorts bounces, it wouldn't short a breakdown sell off
Matt..I imagine the whole possibility of a 4 th entry occurring has now been seriously reduced under this new idea.In fact one would think that maybe a 50,25,25 entry would now be a consideration
Posted by hurricanemalta on 11th of Aug 2011 at 06:50 am
no not really. I gave
Posted by matt on 11th of Aug 2011 at 09:58 am
no not really. I gave you guys the stats, it only affects 3 trades and that includes this one. So it affects 2 previous trades with 4th entries and this one.