Re: Stock System
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If you want to trade based on a system, why would you pick one that makes random selections... thats -EV
[/ QUOTE ] quote from Trade Your Way to Financial Freedom by Van K. Tharp. pg 200, "Our random entry system - consisting of random entry, a three-times-volatility trailing stop, and a simple money management system involving 1% risk-made money on 100% of the runs." (Tharp is one of the original market wizards)
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There are many predesigned systems that have proven track records... +EV
[/ QUOTE ] Systems not designed by the user are extremely difficult to trade through the inevitable drawdowns. Schwager talks about this on his video "Winning Methods of the Market Wizards"
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I am next going to tell the STOCKBOT to stop-loss cover if the position puts me in the red by L%
I am next going to tell the STOCKBOT to run a basic TRAILING STOP PROGRAM if the position puts me in the green by P% to lock in profits.
Close out the position at the end of the day.
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The stock market is not random!!!
[/ QUOTE ] OP is not taking positions lasting longer than one trading day. I think random does apply to extremely short term time periods. OP is cutting losses short and letting profits run. A short term trend following system that might work if money management and position sizing principles were included.
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