Thursday, June 12, 2014


I finally defined a dynamic exit strategy for System 1 for any market.

Basically I will take profits of %25-20%-15%-10%-10%-10% at certain levels and keep the last 10%run as long the trade does not give the stop signal.

The levels are 1 standart deviation away for the MA50.
At the time of the signal 1stprofit taking  level is set for 25%, and once first profit is taken the next 1 standart deviation pivot is taken from the revised MA50 and son on.

By such strategy I capture the volatily of the underlying market at that spesific moment as well as the change in volatility by the time the trade works favorably. There are always extreme cases where the trade can generate even 100%. However tobservations has thought me to take some profits.The swings and noise in any market data also strengthens this approach. Again I have to mention, this part of the strategy is not fully backtested but I m pretty confident from my  experience with the data that this results better than just sitting and waiting till the trade stops automatically.

Anyway, when i defined these levels, I had to take profit from Crude at 105,98 and 65,5 for Facebook at the open. Crude is still forcing up.Next level to take profit would be 107,95 for %20.

Below are the charts:

And the current result:

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