Sunday, April 26, 2009

Back to Basics

I wanted to update on whats happened and where we go from here. Basically my "magic code" turned out to be a false holy grail and after some extensive backtesting I found it wasn't as consistent as I wanted and while it was almost fully automated (not that I intended to trade it that way) it just wasn't good enough. I wiped out the gains from the week and said f'it.

Awais got me back on track and focused on whats really important. Price action. Its the subject most of us know better than we would like to admit but we get too preoccupied looking at pretty squiggly lines to ACTUALLY SEE. The ADX phenom is real and valid as far as i'm concerned. That is the ONLY indicator on my charts. I will use nothing more than that as a qualifier for setups and trendlines for entries from here on out. Basics. I started doing this in sim on Thursday and was raking in money. On Friday I had one loss for -1.25 NQ points and more wins than I could count in the ES and NQ by 1PM. The consistency was through the roof along with the results and directly due to the SIMPLICITY of what I was doing. Trendlines are non-lagging price information and simply work if we let them AND if we use them in market conditions that are prime for momentum shifts.

I'd also like to thank Michael for sending me an indicator he coded up around the ADX (one I was working on but he saved me the time) to give a red light/green light indication of the ADX value. Really saves a lot of time visually backtesting things now. Thanks Michael!

I will be posting my full trade charts with my trendline entries here on out showing EXACTLY what i'm doing (No more hidden indicators Stan!). My following post will cover the ADX theory and chart examples of what i'm talking about when it comes to entries.

1 comment:

E-Mini Player said...

I'm glad I was able to show you the righteous path LOL :D Time to make some $$$!