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Strategies & Market Trends : E-Mini Pit -- Ignore unavailable to you. Want to Upgrade?

To: fut_trade who wrote (501)	2/12/2002 5:02:44 PM
From: the-phoenix	Read Replies (1) \| Respond to of 11288

fut_trade: OK, I should be more careful of the statements that I make, I guess. When I said I shorted all day, I meant I had a bunch of trades on the short side, and none on the long side. I didn't hold short all day, obviously. The "best trade of the day" comment was not intended to imply that this was a generically good setup or that the 50sma15 is a good target for finding that illusive "support". I just meant that this trade gave me my best P&L today, and that selling into resistances was working today, since the larger picture was of a market consolidating after a big runup, and generally pulling back. I thought we had already covered that. Your comments on backtesting a pattern recognition strategy are no clearer, however. No timeframe, risk parameters, etc. I would submit that a strategy of selling the previous day's high, with other setup conditions present (such as hitting this area after three waves of buying, and at a common reversal period like 2:45-3:00) could be a profitable strategy with tight stops, taking a very small risk per trade defined by the logical resistance at the previous high. But, no, I have not personally backtested such a strategy, because it is only one part of any setup that I would look to trade. >>I have had great difficulty developing a good trading system that uses support and resistence as the underlying concept to generating buy/sell signals.<< I am puzzled by this statement. So what generated your buy signal at 1001.50 for today? If the market were to reach that price today, it would have been heading down, so you must have expected support in that area, since you clearly would have been trading in the opposite direction from current price movement?? Maybe you could tell us more about how your system works. We certainly need more ideas here than the few, paltry ones that I come up with. Thanks, Phoenix