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Strategies & Market Trends : Systems, Strategies and Resources for Trading Futures

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To: Tom Trader who wrote (12259)1/9/1999 5:34:00 PM
From: Stoctrash  Read Replies (2) of 44573
 
Tom,
Excellet topic...Scott got me thinking about this type of thing not too long ago. I think you'd have to do it in steps,,,or leg into the position over a set period of time for it to work right, but I'm just guessing here.

For instance, you don't know from time t=1 or 1 minute after your signal that this "is" the trade. So.... something like after X minutes (or hours) and the "TT signal" is still in effect, then buy Z more contracts IF the price is still above the (Buy Signal + L)... and move the stops to O. I think the same thing would be needed for your exit where you would LEG out of the position based on risk or reversal points from the most recent top. You might want to search the net for "game theory" or similar as I think this is relivant to that. Here are some I found:
tau.ac.il
see the next post August has is narrowed down!!

Also, I would assume you would only want to add or max your position when you are ahead on the trade....and not average down? Correct?

Does ANY of that make sense???.....!!!!

I have some Stat & Fin. Mgmnt books at the office...I'll see if they have any examples or fromuli from which you might derive from.

BTW...Pat, I think they should take option 2 & save the "people" who do pay their TAXES the cost of keeping them behind bars!!!
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