pbb
04-14-2005, 10:42 AM
Filtering set-ups is not just easy to do. By using a 20MA on a higher timeframe I have seen that over a longer period in time my results grew.
Not just that I made more money but also I lowered the amount of bad-trades, which results in less psychological pressure. However, the best trades are often the ones that will change the trend and for that reason one can ask himself if trendfiltering using a sole 20MA is the wright thing to do. I see Mtp as the first step into my tradingplan, step 2 could be the 20MA once a set-up unfolds. As prices are going up and down crossing the 20MA many times it is hard to determine the trend; or the MA is flat; or a break might be on it's way. To avoid these hardtime brainstorming sessions I use a slightly different approach. Yes, I keep in mind the 20MA as an overall situation, however I use a simple rsi to confirm the set-up. I do not trade using the rsi (that I don't fully trust), but I do trade on a set-up if confirmed by a rsi. Instead of the rsi you may use a (faster) stochastic, many times on great set-ups you will see divergence in the stochastic. I do not say that my methods will be profitable all times and also you may see that you miss nice opportunities, it's just a method that leads me through the jungle of set-ups.
If anyone has any suggestions or different thinking, please post a thread.
It's not my goal to force you with my tradingstyle, as for every style counts that it may work today but it might not work tomorrow.
Not just that I made more money but also I lowered the amount of bad-trades, which results in less psychological pressure. However, the best trades are often the ones that will change the trend and for that reason one can ask himself if trendfiltering using a sole 20MA is the wright thing to do. I see Mtp as the first step into my tradingplan, step 2 could be the 20MA once a set-up unfolds. As prices are going up and down crossing the 20MA many times it is hard to determine the trend; or the MA is flat; or a break might be on it's way. To avoid these hardtime brainstorming sessions I use a slightly different approach. Yes, I keep in mind the 20MA as an overall situation, however I use a simple rsi to confirm the set-up. I do not trade using the rsi (that I don't fully trust), but I do trade on a set-up if confirmed by a rsi. Instead of the rsi you may use a (faster) stochastic, many times on great set-ups you will see divergence in the stochastic. I do not say that my methods will be profitable all times and also you may see that you miss nice opportunities, it's just a method that leads me through the jungle of set-ups.
If anyone has any suggestions or different thinking, please post a thread.
It's not my goal to force you with my tradingstyle, as for every style counts that it may work today but it might not work tomorrow.