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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hurricanemalta - yes that's correct,
New SPY system stop loss rules, etc
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.