Here's a comparison of the Trend/Pullback vs the original
Trend/Pullback to show you an example.
the one we use as you know it took a quick long trade in mid Oct
and closed out on the reversion to mean bounce.
the original Trend/Pullback on the right never closed out on
that bounce but instead took a 2nd and a 3rd entry at the lows,
it's closing out today.
anyway this shows you the give and take. The one on the left is
MUCH less prone to getting trapped long as it can easily exit after
a reversion to mean bounce, however by doing so it gives up a lot
of profit at times by exiting too early and not getting additional
entries. The one on the right makes more money because it tends to
hold longer and can catch more 2nd and 3rd entries, but in doing so
has larger draw down.
another SPY systems update: As you know I chose to keep the ETF
trade open on the CCI giving the QE BTS still being long and that
was a good call with today's rally.
So regarding the QE BTS just like the Trend, I have two
versions. the one on the left is going to continue staying long,
while the one on the right closed out this morning on the open. So
which one do I follow? maybe split the difference sell 1/2
the ETF position, and keep 1/2
you know something I thought of, one way I might be able to add
more profits to the left chart is: close the position out after the
reversion to mean and be fully in cash, but then if the original
system were to take a 2nd or 3rd entry could entry that position
and there would be no draw down because the first entry would have
been fully sold. something I'll look at
SPY systems comment example
Posted by matt on 4th of Nov 2020 at 10:09 am
Here's a comparison of the Trend/Pullback vs the original Trend/Pullback to show you an example.
the one we use as you know it took a quick long trade in mid Oct and closed out on the reversion to mean bounce.
the original Trend/Pullback on the right never closed out on that bounce but instead took a 2nd and a 3rd entry at the lows, it's closing out today.
anyway this shows you the give and take. The one on the left is MUCH less prone to getting trapped long as it can easily exit after a reversion to mean bounce, however by doing so it gives up a lot of profit at times by exiting too early and not getting additional entries. The one on the right makes more money because it tends to hold longer and can catch more 2nd and 3rd entries, but in doing so has larger draw down.
another SPY systems update: As
Posted by matt on 4th of Nov 2020 at 10:55 am
another SPY systems update: As you know I chose to keep the ETF trade open on the CCI giving the QE BTS still being long and that was a good call with today's rally.
So regarding the QE BTS just like the Trend, I have two versions. the one on the left is going to continue staying long, while the one on the right closed out this morning on the open. So which one do I follow? maybe split the difference sell 1/2 the ETF position, and keep 1/2
you know something I thought
Posted by matt on 4th of Nov 2020 at 10:11 am
you know something I thought of, one way I might be able to add more profits to the left chart is: close the position out after the reversion to mean and be fully in cash, but then if the original system were to take a 2nd or 3rd entry could entry that position and there would be no draw down because the first entry would have been fully sold. something I'll look at
I really like this idea!
Posted by focus175 on 4th of Nov 2020 at 12:03 pm
I really like this idea!