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Old 12-10-2004, 06:50   #6 (permalink)
James
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To briefly add:

Exiting a profitable trade is more difficult than entering one. I try to trail my stops under or above the nearest signnificant fractal. Once stopped out for a profit, look to re-enter in the same direction(assuming your view has not changed) on a significant counter trend move using the same principles as my previous post. If you can get oversold/bought hourly conditions again before entering, even better.

This is my trading strategy in a nutshell, and I have used it for 5 years. I only came unstuck when I tried to change my thinking and become smarter than the market.

This is very important: using averaging tools such as MA's, stochastics, RSI etc etc will work fairly well in times of high volatility and large swings, but in a low volatility, incrementally trending market, you will get wiped out. My systems work in all market conditions. The only thing I have added recently is the observation of reversal type candles to signal an entry, rather than blindly entering on important levels.
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