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Buffalo Bill

Member
25
Posts: 28

Joined: 1/2/2015
Location: Stafford, VA

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Subject : RE: Improving RTM Results With Limit Entries
Posted : 8/19/2017 7:21 AM
Post #36866 - In reply to #36865

"Keep in mind that when an RTM trade fails, is often fails by becoming a true reversal. So doubling down could be very dangerous. Especially when working with out of sample data."

Hi jim

Yes, that is why I wondered if a larger day one loss is an indicator of a true reversal and should not be averaged down with more shares. Not sure what the data may reveal, but wondered if it is a valid tactic.

Also since a day 1 loss of over X% may be the signal of a true reversal so not only do we not add on but we should exit immediately.
Deleting message 36866 : RE: Improving RTM Results With Limit Entries


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