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Strategies & Market Trends : Befriend the Trend Trading -- Ignore unavailable to you. Want to Upgrade?

To: Dr. Stoxx who wrote (39609)	12/11/2008 12:36:25 PM
From: PB2TT	Read Replies (2) \| Respond to of 39683

TC, On the second read-through I decided to take a closer look at your casual mention of BTTT-MAX so I googled it and it led to the pages on this forum. I'm pretty much following it verbatim on the SKF / UYG pair with very small trade sizes. 5 EMA / 8 SMA crosses, stochastic / OBV as confirmation, and entry on trend-confirming candle after the crossover. I also just went through Tharp's Ch 14 on position sizing last night as you discuss in your book and it was very insightful. I'm hoping to have a clearly defined system to use by the end of Jan when my severance check hits. Right now I'm trying to wrap my hands around the money management and psychology aspects of trading as I'm sensing a recurring theme that these are some of the most important but often overlooked areas. LH

To: Dr. Stoxx who wrote (39609)	12/12/2008 10:46:35 AM
From: PB2TT	Respond to of 39683

TC, That is pretty interesting...almost like a straddle where you let the trailing stops leg you out of the trade, right? Right now I have just one position on...I don't think I'm ready for full-blown day trading yet but would like to work in that direction. My only open position is some shares of SKF that I picked up on Tuesday @ 106 based on the MAX cross. I'm trying to figure out what the best exit strategy might be those times that the MAX system gives you a head fake (ie in and out of a trade within a day with no profit). I understand that no system is perfect. But if this is a trend-following system, it seems make sense to exit a trade right away if it starts moving the wrong way right after entry rather than wait for a downward cross. Looking at the SKF/UYG pair charts the quick crosses would seem to be more the exception rather than the rule, which is what I'm hoping for...