Friday, August 15, 2014

15/08/2014 end day

Dax System 1 trend short entry Trade 14  is on. Entry 2 and 3 will be around MA50. Below is the chart.
AEX System2 short Trade 13 is on. 20 deltas exited at MA20, 30 deltas at MA50 and the rest 40 deltas are kept short.

The stop loss and entry levels are going to be set not only by the bollinger bands but also higher frame resistace levels to reduce the risk and increase the probability of a good trade.

The entry levels has to be inline with the higher time critical levels like 5h MA20 /MA50, Daily Ma20/MA50 etc.
Thus the stop level has to be a meaningful level as well.(when a critical level is broken)
The ideal trade will be the bollinger band matching critical levels. 

Below it is possible to see  60 Min MA200 (blue line)is a meaningful stop level.

60 min chart:

5h ma50 was touched and broke down.
5h chart:

Daily MA was at 400,55,right when the market broke down:

It looks more like that the best system requires some finetuning with realtime conditions. However that makes backtesting quite impossible to fit and check all these scenarios. Thus The backtested original system will still trigger entry but the size of the entry would depend on the real time conditions at the time.

The results are below:

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