Eric,
First, your comment, "...all of the alerts are 'scored' based on how well they meet certain criteria." was very intriguing! Most trading "systems" seem to deal with either boolean logic or a more organic approach. I.e., the boolean logic systems have rules like, "If the price is greater than X, and the Stochastic is lower than Y, and... then Buy!" Fuzzy logic systems refer to patterns like hammers and dojis, and MA crossovers and rainbows. Both are good but different. This is the first time I've read about a points-based system.
I understand that you have a system that you've used for your own trading (you've mentioned it in several earlier posts). Also, from recent posts, you are creating a system for Pristine that sounds very nice. Do both of these systems use a points-based approach?
Regarding trading strategies in general, several people have discussed issues around trade rate (number of trades per minute) or volume as indicators of trading activity. Also, support/resistance points have been discussed many times. I've noticed that that many times when a support/resistance line has been broken or result in a significant failure, it *seems* that trade rate starts jumping just prior to the movement and increases during the penetration or bounce.
What are your thoughts about trade rate as a primary or supporting indicator? Anyone else? |
