Never meant to suggest that there was some "fun" and "easy"
"'secret,'" to the contrary, but it's true you had me imagining some maverick firm of well-capitalized traders milking some top secret heavily back-tested proprietary system for all it was worth... Anyway, I think your contributions have been interesting and provocative. One critical aspect of your style that you haven't made clear, though, is how you define "new highs" and "new lows" (e.g., 52-wk high/low, 20-day, 20-bar, day high/low...).
I still believe that, in theory, a true daytrading system of the sort outlined might be made to work for a decently well-capitalized retail account. As I've reflected on the requirements and parameters, I've realized that a version of it might not be so far out of reach, and, if the Tradestation direct access platform pans out, there may even be numerous attempts along these lines. Potential transformations in the character of Nasdaq trading may lend additional appeal to transferring the emphasis of trend-following approaches to shorter time-frames. Until, however, I've tested such a system thoroughly, it's just a concept to me.
"I have to say that the edge has been quite dull for some time. It can only get better from here. Basically it has required the taking of profits in a quicker manner."
Don't know whether there's any reason to presume things can only get better - and, without knowing the precise parameters you're using, can't offer any ideas on possible adjustments. I've certainly also observed, however, a number of set-ups - both countertrend and breakout - that either have to be played purely as day-trades (one level above scalps) or seem to require much greater tolerance for risk and reversal than under other conditions. I've noticed discussion of this subject on other threads, and my guess is that it's "normal" behavior for a market in as abnormal a situation as the Nasdaq has been in of late. Seems like there've been a lot of hitchhikers getting run over while crossing to the other side... In retrospect, of course, they've mostly turned out to have been heading south. |
