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Strategies & Market Trends : The Player's Club -- Ignore unavailable to you. Want to Upgrade?


To: F Robert Simms who wrote (9734)6/16/2000 9:09:00 AM
From: Magnatizer  Read Replies (1) | Respond to of 11513
 
Simms

I am in a similar boat. The theory I am going by is to develop two systems. One for choppy, one for trending.

As with you my trend system is being whipsawed badly as the market trades flat. The chop system has been doing fine.

The next step (I imagine) is figuring out the best time to switch from one to the other. I think using both at the same time... all the time... is the only solution. This will only work if the wins from each individual system ave larger then the losses.

Perhaps some others who have gone through the system development stage will give us some leads as to direction.

ht
Mag



To: F Robert Simms who wrote (9734)6/16/2000 9:18:00 AM
From: Gersh Avery  Read Replies (3) | Respond to of 11513
 
Hi Bob ..

If you have the account go up 30% one day and then down 30% the next day, the account is at a loss.

This was the reason that I started thinking about keeping my trade sizes to a set amount of contracts.

As a trader has more success the ability for even larger losses grows.