The second sacred cow: "Grow profits, cut losses" - page 15

 

Remember the first one, Petya?

 
Mathemat:

Remember the first one, Petya?

Trend? Inertia, whatever local minds might imply/deny it, is there. Who doesn't notice it (today, for example), there's nothing to be embarrassed about. One can openly drink and eat. Sing.

Ha! As a rule, this cow is not milked. It's milking those who stand up against it. So milking... Like tonight... )))

 

There is both inertia/trend and anti-inertia/reversion in any instrument. The main thing is to know when they occur. Here is an example of a return to average strategy with profit trades smaller than loss trades (which is typical for anti-inertia ones) on a single MA with the same parameters for all from the 99th. Positions hold from several hours to several days, re-entries at a stronger signal are used:

Of course there is no point in trading directly - it is just a return test. The longer the no-trend lasts, the higher the probability of a certain correction. At the same time there is also inertia. The main thing is to use correctly the properties of inertia and reversion.

That is, the question is how inertia appears and how inertia appears, what are the properties of inertia and how it can be used systematically. And indeed, in trend systems either it does not make sense to cut profits at all (put tp for example) or put tp quite far and exit on the opposite signal.

 

Glory!
No way! The movement is not related to a correction in the general case.

 
Svinozavr:

Glory!
No way! The movement is not related to a correction in the general case.


Peter, imha, there are always two trends simultaneously: inertia and reversion. There is no reversion without movement - otherwise why would there be a reversion? It's just that these two trends develop differently - different factors to strengthen them and weaken them. And you have to use these two tendencies in different ways.
 
Avals:

Peter, imha, there are always two trends at the same time: inertia and reversion. There is no reversion without movement - otherwise why would there be a reversion? It's just that these two tendencies develop differently - different factors to strengthen them and weaken them. And you have to use these two tendencies in different ways.

Glory! What is there to come back from? Of course, you will have to come back at some point. But it is possible that someone else will come back. Or no one at all.

===

To what. The movement, the flow, the Tao must be used to its fullest. And stop being silly about how to recognize it. That is when your balls will be squeezed into two stars, from which a couple of million years of light is coming, when you feel that you are about to fuck it up - this is it. ))) Just kidding.

It's simple. Enter where it is higher. The rule works on high volatility. Add in on corrections (don't - I'm being purely specific!). And don't be afraid to roll over when it gets lower. Better than the boring overexposure, which ends with the MC.
Well, you know how it is...))

 
Svinozavr:
Glory! What is there to come back from? Of course, you will have to come back at some point. But it is possible that someone else will come back. Or no one at all.

Of course. It's suicidal to use the reversion in a head-on way, like the martingale guys do, or to wait out big drawdowns altogether. It has to be used differently. One of the variants is patterns; the sanction is the cumulative potential of reversion. But it is mainly for American stocks. There are other options with acceptable risks, rather than playing until the first very))))) irreversible trend.
 
P.S. There are methods of using inertia and reversion at the same time. For example, trend trading on corrections
 

Pardon the tone. // just another stylisation - unfortunate, I agree

What I really wanted to say is this.
You can jump on the train at the next stop, if you manage to get to it, you can jump on it as soon as you get on (almost unrealistic - you have to know the schedule), and you can jump on the train at full speed, with a safety net.
That's all I meant to say.

 
Svinozavr:

It's simpler than that. Enter where it is higher. The rule works on high volatility. Add in on corrections (don't - I'm being purely specific!). And don't be afraid to roll over when it gets lower. Better than the boring overexposure, which ends with the MC.
Well, you know how it is...))

it's an example of the simultaneous use of inertia and reversibility)) They exist, the main thing is to use them correctly.
Reason: