Quote:
Originally posted by Burtakus
Do you take every trade the system signals?
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Hi Burtakus,
Great question. When I sit down to trade I take every signal that I recognize, but I only trade one pair at a time so I'm not under a lot of conflict. When I open a position I generally don't stack or add additional lots unless it moves strongly in my favor. I close under one of four different occurances:
(1) My target is hit
(2) I see a reversal pattern begin to form
(3) My time in trade bar count hits before 1 or 2 above
(4) My S/L is hit
Therefore, my next signal is generally a reversal and since I don't hedge I will close or already have closed the previous position before I take the next signal.
My multiple position trades only occur when the move is in my favor and my equity curve covers the stacked trade(s). In those rare cases I'm moving my S/L up as I go so only the latest trade could reverse for a relatively small loss.
Let's hear how others do it. How about yourself? Under what circumstances do your signals call for multiple entries?
Good Trading