DVDS Short: Hey Matt, what would it take to see a 3
rdentry in the DVDS short? BTW, I inferred your selling
½ was a discretionary call and not an actual systems trigger, so I
am still 100% short on that trade since I am trying to be more
disciplined and follow the signals mechanically.
sethbru- yes it was a discretionary exit but I also added a
scaleout component to the system as well so it does happen
I definitely understand just following the systems, that's what
they are for. However, as I discussed quite a few times, the DVDS
short system had one stop out level based on the DVDS indicator
>X such as 0.97. It's one of the older systems and doesn't have
other stops. I decided to exit 1/2 because the stop out for the
system based on that indicator going above 0.97 is far away and the
market could run away for a bit before that gets hit, and I didn't
want folks to go through that draw down.
So far at least was a good call to exit 1/2 and maybe I should
have simply chosen to exit it. The indicator is at 0.83 so still a
ways from stopping out. A 3rd entry would require quite higher
prices of course to trigger, not sure of that level yet.
Otherwise back to the market, because we had 2 strong up days, I
think odds favor at least a small consolidation early this week, I
may or may not elect to just exit the position on that
consolidation.
whatever I decide to do, I'll still communicate what the system
does such as taking a 3rd entry and finally stopping out if that
occurs
it's tough man because I walk a fine line of just following the
systems or once in a while making an executive decision that is
sometimes best and sometimes not. Because most of the time the
systems work out, is why I elect to do the 1/2 trade because then I
still have some skin in the game if the system was right, but if it
was wrong I have 1/2 the position for draw down and hopefully
locked in some gains to reduce that as well. We'll see how it plays
it!
Posted by patellee on 30th of Apr 2023 at 05:35 pm
sethbru: FWIW I am also 100% in the system. I am ok
taking the drawdown and I always stick to the systems because the
systems don't deal with my emotions and are usually correct over
the long run.
DVDS Short: Hey Matt, what
Posted by sethbru on 28th of Apr 2023 at 05:55 pm
DVDS Short: Hey Matt, what would it take to see a 3 rdentry in the DVDS short? BTW, I inferred your selling ½ was a discretionary call and not an actual systems trigger, so I am still 100% short on that trade since I am trying to be more disciplined and follow the signals mechanically.
sethbru- yes it was a
Posted by matt on 30th of Apr 2023 at 02:00 pm
sethbru- yes it was a discretionary exit but I also added a scaleout component to the system as well so it does happen
I definitely understand just following the systems, that's what they are for. However, as I discussed quite a few times, the DVDS short system had one stop out level based on the DVDS indicator >X such as 0.97. It's one of the older systems and doesn't have other stops. I decided to exit 1/2 because the stop out for the system based on that indicator going above 0.97 is far away and the market could run away for a bit before that gets hit, and I didn't want folks to go through that draw down.
So far at least was a good call to exit 1/2 and maybe I should have simply chosen to exit it. The indicator is at 0.83 so still a ways from stopping out. A 3rd entry would require quite higher prices of course to trigger, not sure of that level yet.
Otherwise back to the market, because we had 2 strong up days, I think odds favor at least a small consolidation early this week, I may or may not elect to just exit the position on that consolidation.
whatever I decide to do, I'll still communicate what the system does such as taking a 3rd entry and finally stopping out if that occurs
Thanks Matt! Next time, I'll
Posted by sethbru on 30th of Apr 2023 at 02:04 pm
Thanks Matt! Next time, I'll just do exactly what you do (Matt+System > System).
it's tough man because I
Posted by matt on 30th of Apr 2023 at 02:09 pm
it's tough man because I walk a fine line of just following the systems or once in a while making an executive decision that is sometimes best and sometimes not. Because most of the time the systems work out, is why I elect to do the 1/2 trade because then I still have some skin in the game if the system was right, but if it was wrong I have 1/2 the position for draw down and hopefully locked in some gains to reduce that as well. We'll see how it plays it!
sethbru: FWIW I am also
Posted by patellee on 30th of Apr 2023 at 05:35 pm
sethbru: FWIW I am also 100% in the system. I am ok taking the drawdown and I always stick to the systems because the systems don't deal with my emotions and are usually correct over the long run.
I second this comment. It's
Posted by skwan1940 on 1st of May 2023 at 10:26 am
I second this comment. It's all about discipline, and it's a marathon not a sprint.
Yes, I would like to
Posted by hkwong on 28th of Apr 2023 at 10:13 pm
Yes, I would like to have more clarification on this as well. I believed the half position closed was discretionary.