baryaj0806- a
couple days ago you made this comment:
Why on earth would the system signal an exit of a short trade when
the trade is finally going in the right direction?
The system is a system, of course the market is down some today,
but yesterday the market was up huge and I'm sure that if the
system was still short yesterday people would have been
whining/crying, and I see that no one mentioned this after
yesterday's big rally about still wanting to be short.
The system covered because the trending indicators that it uses
were still positive, that's why it covered and even with today's
pullback, SPY is still much higher then where the system covered.
The system is a system, that's it. It looks to take take trades
when the market is stretched away from the mean and has strict
rules for exiting. Now hopefully it will continue to have
nice trades and pull money out of the market, with that last big
losing trade was hopefully an anomaly that occurred when
S&P downgraded US 1st time in history.
Matt, I see the chart still has the possible 5th entry you were
considering. Just wanted to check my understanding as to the way
the various modifications you were testing worked out -- as of now
there are no modifications and there will not be fifth entries or
stops. Is that right?
It is counterintuitive, but I suppose it all depends on the
system's signals. If they were once again looking oversold on
Friday, or perhaps no longer overbought as they were when the
system went short, such that there is no longer a significant
statistical trading edge in the down direction, then I guess that's
the exit signal.
Why on earth?
Posted by baryaj0806 on 2nd of Sep 2011 at 12:47 pm
Why on earth would the system signal an exit of a short trade when the trade is finally going in the right direction?
baryaj0806- a couple days ago you
Posted by matt on 8th of Sep 2011 at 04:19 pm
baryaj0806- a couple days ago you made this comment:
Why on earth would the system signal an exit of a short trade when the trade is finally going in the right direction?
The system is a system, of course the market is down some today, but yesterday the market was up huge and I'm sure that if the system was still short yesterday people would have been whining/crying, and I see that no one mentioned this after yesterday's big rally about still wanting to be short.
The system covered because the trending indicators that it uses were still positive, that's why it covered and even with today's pullback, SPY is still much higher then where the system covered.
The system is a system, that's it. It looks to take take trades when the market is stretched away from the mean and has strict rules for exiting. Now hopefully it will continue to have nice trades and pull money out of the market, with that last big losing trade was hopefully an anomaly that occurred when S&P downgraded US 1st time in history.
Matt, I see the chart
Posted by bkout3 on 9th of Sep 2011 at 10:24 am
Matt, I see the chart still has the possible 5th entry you were considering. Just wanted to check my understanding as to the way the various modifications you were testing worked out -- as of now there are no modifications and there will not be fifth entries or stops. Is that right?
That's been answered a zillion times...maybe more..
Posted by burkmere on 2nd of Sep 2011 at 03:26 pm
Yeah, I know but
Posted by baryaj0806 on 2nd of Sep 2011 at 05:18 pm
Yeah, I know but doesn't it strike a hard note?
It is counterintuitive, but I
Posted by frtaylor on 5th of Sep 2011 at 06:05 pm
It is counterintuitive, but I suppose it all depends on the system's signals. If they were once again looking oversold on Friday, or perhaps no longer overbought as they were when the system went short, such that there is no longer a significant statistical trading edge in the down direction, then I guess that's the exit signal.
I don't think we have
Posted by dylan398 on 8th of Sep 2011 at 09:00 am
I don't think we have ever seen this type of market manipulatuion in a lifetime...thus all systems become somewhat suspect...JMHO