Normal
If you replace the entry with random you'd be marginally worse off. Most of the filtering benefit of the T/T entry comes from selecting for stocks above a medium term moving average - that's robust and that works.You'd find, though, if you went back and redid the T/T creation process that most of the entry filters wouldn't work anywhere near as effectively as they used to - most of the T/T entry is merely curve fitting to the data of the day.But that's not the point. That's time-wasting on whether a 30 EMA is better than a 15 EMA and other such irrelevant details.What works is the consistent following of the rules to limit the losses and let the winners run. Do that, and long term trend following will work no matter what the entry contributes or doesn't contribute.T/T is profitable DESPITE all efforts to corrupt it by overanalysis because it has an exit which skews the R:R in the correct direction.
If you replace the entry with random you'd be marginally worse off. Most of the filtering benefit of the T/T entry comes from selecting for stocks above a medium term moving average - that's robust and that works.
You'd find, though, if you went back and redid the T/T creation process that most of the entry filters wouldn't work anywhere near as effectively as they used to - most of the T/T entry is merely curve fitting to the data of the day.
But that's not the point. That's time-wasting on whether a 30 EMA is better than a 15 EMA and other such irrelevant details.
What works is the consistent following of the rules to limit the losses and let the winners run. Do that, and long term trend following will work no matter what the entry contributes or doesn't contribute.
T/T is profitable DESPITE all efforts to corrupt it by overanalysis because it has an exit which skews the R:R in the correct direction.
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