How is the viability of a trade idea determined? - page 4
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Take and stop are synthetic indicators (numbers) that have nothing to do with the market situation. They should be discarded altogether when determining the quality of entry points!
An ALGORITHM is responsible for the entry point, which may be good or bad... NUMBER ( stop or take ) are not related to the market situation, and therefore can not determine the quality of the entry...
A good entry is when price went to the take and not to the stop. A bad entry is when price went to the negative zone from the trade opening and was losing. Even if the price then reversed and went in a profitable direction.
In order for the entry point to be good, we should get more take and stop triggers at equal distances to the take and stop. Equalising the distances allows us to remove the randomness factor from our forecasts.
But let's say my entry point is always a range and I can enter in parts, i.e. I can average or use martin (in reasonable amounts of 1-2 knees).
Then the quality changes ?
I think so, yes it does. Because the average price of the position - aka "entry point" - becomes closer to the current price.
A good entry is when the price went to the take and not to the stop. A bad entry is when the price went into negative territory when the trade opened and was hanging on for a loss. Even if the price then reversed and went in a profitable direction.
In order for the entry point to be good, we should get more take and stop triggers at equal distances to the take and stop. Equalizing the distances allows us to remove the randomness factor in our forecast.
You are mistaken...
A good entrance is when the trade closed in profit. The algorithm is responsible for the entrance. The algorithm is responsible for the exit.
Stop and Take are crutches for disabled people who do not understand the market... For the successful trader, take is not needed at all, and stop is an insurance against force majeure, which happens once a year...
You are mistaken...
A good entry is when a trade closed in profit. The algorithm is responsible for the entry. The algorithm is responsible for the exit.
Stop and Take are crutches for disabled people who do not understand the market... For the Successful Trader, take is not needed at all, and the stop is an insurance against force majeure, which occurs once a year...
If a deal is closed on the plus side - this is the overall result, which encloses the entry point and choice of direction and choice of exit point.
I'm not saying that stop and take in the final version of the trading system should be exactly as we set them in order to check the quality of entry points. This is just the initial stage where we try to find out if the system gives good signals or not. From a good entry point the price takes the shortest path to the take. If a trade closed on the profit side, but first the price entered a loss-making zone and hung around there, and then turned around and went to profit, the best entry point was precisely the moment the price turned from loss to profit and not the initial entry point where the price entered the loss and went back.
You don't need a TP at all, and a stop is insurance against force majeure, which happens once a year...
Yes, I support Sergei. We go in and out on the signals ourselves. That's the plan I like.
Yes, I support Sergei. We go in and out on the signals ourselves. That's the plan I like.
This is not a plan - this is bullshit!
Take the classic rally situation:
Well, as if gold is overbought, everyone begins to sell it in droves, well we even observed this according to forecasts on our resource, well, not many people began to buy it at that level.
So, we sold like a signal on the very chai and waiting for profit and exit in the same way according to the signal.
The question is where is the signal to close the profitable position? Yes, there is no signal, but there is a reversal signal; the one who averages has averaged in; the one who does not average waits for the price at the entry point.
There was no reversal as well as pullback.
That's it, the deposit is gone too!
= = = = = = = = = =
Before entering the market, you need to clearly define the boundary where to exit in case of failure, and therefore the target for which you entered the market.
It is stupid to enter the market with a target of 5 points and at the same time risking a stop loss of 100 points, or waiting for an exit signal in 100 points, or even risking the entire deposit.
That's not a plan - that's bullshit!
Let's take a classic rally situation:
Before you enter a position in the market, you need to clearly define the very borderline where to exit in case of failure, and therefore the very purpose for which you entered the market.
You are obviously the SECOND WANG, as you suggest to EVALUATE future events on the market...
I envy you!
I've never possessed such UNIQUE qualities as FUTURE anticipation...
That's not a plan - that's bullshit!
Vitaly, it may not work at this point. The important thing is that this plan works more than half the time. The stop is there, it's just farther away than the average wavelength of the oscillation. And it's better to close not on a knife edge against you, but on a pullback a little later. And closing on the stop and that's what it's all about!
You are obviously the SECOND VANGA, as you offer to EVALUATE future market events....
I envy you!
I've never had such UNIQUE qualities as FUTURE anticipation...
But you know the lot of your trade. You can calculate after how many pips the loss on the trade will be unacceptable, to sit in it further.