Can the system be coded or do you have discretionary elements in there? Sounds like backtesting would save sometime/possibly money!
Profit targets might make you feel good but might not be the best option
Who advised you to scale out?
http://throwinggoodmoney.com/2016/04/the-myth-of-scaling-out/
Just get a simple entry signal (eg. MA cross), add your discretion to see which trades to take, and start. If it fails, then it's your confidence that needs work. Trading doesn't have to be laborious and complicated.
GB, I'm gonna have to put you on ignore or just quit the thread....
You said you wanted feedback. I provided a link to something that shows scaling out doesn't work. And I advised keeping it simple. Do you want feedback or not?
part of it is mean reversion and you don't want me to scale out? I should go all out and trail a full stop on the trend trades?
Well I don't, but maybe FX markets behave differently.
That link I posted above about scaling out was legitimate.
As is this one for trend capture systems: http://www.automated-trading-system.com/profit-targets-trend-following/
GB, there's also the issue of how to manage the trailing stop while I'm not at the screens....although if this works as planned I may move back home.
Each to their own of course but I could never do all that like you do, I'd rather just have a few plays that I've learnt, the rest I know or is in my head, I'd rather be trading and watching/learning the markets rather than writing up big plans, things that actually help my trading, writing a plan out has never helped me or made me any profits, plus I'd never look at it, I'd write it up then put it in a drawer or on the desk and it would gather dust, not like you forget those things, like oh crap what's my risk percentage again? *refers to massive plan on page 7 section 15.1 annnnnd I've missed the move.
But I guess I'm shorter term trades and definitely couldn't be that systematic, more feel and market flow and patterns, especially with the dax, everything is dynamic and ballpark, not exact for me. Not that I know anything of course, your way of doing things just amazes me
Luckily there's no right or wrong way, if it works for you, it works!
There are three types of types of plays, the breakout retest should be easist to code. The other two are somewhat more difficult but possible. I'll trade it live with a small account first, following the rules. I can code up part of it aside go and trial those parts as level indicators until I get them how I like. The rest will take time. I have plenty of time and plenty of capital. One day it would be good to be able to back test it, but it's not my full intent.
Just use IG. Plot a trailing stop or a trendline and get them to trigger if the line is touched. Walk away and do something else.
Coding up semi discretionary plays would present its own issues i would imagine, you have it worked out anyway by the sounds. Good Luck!
Thanks, this is a 100 trade exercise and at the end during the trade review process i can also decide if some degree of automation is worthwhile/feasible..
for someone who has been discretionary trading previously like yourself for a long period of time (assuming profitable) and trading fairly standard setups (re-tests of support,BO, triangles etc), then if you follow proper risk management then there is no reason you shouldn't be profitable over a large enough period. Could be a different story if you just traded some random pattern you think you've discovered one day.
What will you do if after 100 trades you are BE or in drawdown? it doesn't necessarily mean your system is no good.
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