A topic for traders. - page 125

 
Dmytryi Nazarchuk #:

For the third time, he is not trading.

He sells indicators

How do you trade?
 
osmo1709 #:
In any trading system take profit should be higher than stop loss - then you will always win. In financial markets, the distribution is lognormal, that is, there are a lot of irreversible strong moves, otherwise you could win on the Bollinger, and price would always bounce back to the average. But you cannot win on the Bollinger with bounces. The price often touches the upper or lower band and goes further up or down. So the distribution is lognormal. And the take profit should be bigger than the stop loss in ANY TS

Not every TS has a take profit at all. Most of mine do not. And in those that are in real trading, not on a test - not in any.

But there is a stop loss. But it is dynamic and highly non-linear.

And yes, there is a quite successful contrarian one among them, with a Bollinger bounce (with additional conditions), and here its variants with TP show worse results than without TP.
 
JRandomTrader #:

The system is interesting, if I had been trading forex, I would have understood it for sure.

I tried it a long time ago on Roux and American securities, but it didn't work, the companies' securities go at different speeds, especially after the reports.

 
Vitaly Muzichenko #:

I tried it a long time ago on ru and american papers, it didn't work, the companies' papers go at odds, especially after reports.

Exactly, so for me the system is unsuitable. But it is still interesting, I have had similar thoughts myself, but I don't want to go into forex.

 
JRandomTrader #:

Not every TS has a take profit at all. Most of mine do not. And in those that are in real trading, not on a test - not in any.

But there is a stop loss. But it is dynamic and highly non-linear.

And yes, there is a quite successful contrarian one among them, with a bounce from Bollinger (with additional conditions), and here its variants with TP show worse results than without TP.
Take may be virtual. When a profit is taken it is also a take profit
 

On the subject of correlation, here is the correlation of currencies over the last 24 hours (period) on an hourly chart. You can see for example that in EURUSD the currencies are moving in different directions, and in GBPUSD in the same direction, while EURGBP is also moving in different directions.

The problem here is in the sample (period) - even if the correlation reaches e.g. +1.00, it is not certain that divergence will follow. The window is a sliding window.

 
osmo1709 #:
The take can be virtual. When a profit is taken it is also a take profit

In my systems, the main and usually only option to close is on a (virtual) stop loss. But how to pull up the stop loss is a know-how.

 
Evgeniy Chumakov #:

On the subject of correlation, here is the correlation of currencies over the last 24 hours (period) on an hourly chart. You can see for example that in EURUSD currencies move in different directions, and in GBPUSD in the same direction, while EURGBP also moves in different directions.

The problem here is in the sample (period) - even if the correlation reaches e.g. +1.00, it is not certain that divergence will follow. The window is a sliding window.

What you shouldn't do is go in around 1.0, it's dangerous, you should look for entries around 0.8, the moment they diverge

 
Evgeniy Chumakov #:

On the subject of correlation, here is the correlation of currencies over the last 24 hours (period) on an hourly chart. You can see for example that in EURUSD the currencies are moving in different directions, and in GBPUSD in the same direction, while EURGBP is also moving in different directions.

The problem here is in the sample (period) - even if the correlation reaches e.g. +1.00, it is not certain that divergence will follow. The window is a sliding window.

What if there is a divergence? And it goes into deep negative, what should I do? Vitaly, that question could not be answered
 
Vitaly Muzichenko #:

What you shouldn't do is enter around 1.0, that's dangerous, you should look for entries around 0.8, the moment they spread out

Answer the question: what do you do when trades get strongly in the red? Close with a big minus and lose money, that's what you will do