Falling Knife ⚔ Stalling Knife - Day Trading: Feb 12, Intraday

I am so done with this Momentum Lagging Trading System..... (for now). The intention of this Trading System was to catch the falling knife when it had momentum, and ride it to profit. What I had not bargained for, was the number of times that the falling knife would stall right at my point of entry.

This was probably the wrong time for me to switch from the Range Compression Trading System. If I had traded the Range Compression Trading System on Friday, then I would have had 2 Short winners in the down move and 2 Long winners in the up move.

One of the reasons for the Momentum Lagging Trading System doing so bad is the tighter Stop Loss rules that I have used for this system. However, at this point, I do not want to test that system with a wider Stop Loss. Momentum moves are volatile, and the risk of slippage is huge. And it is difficult to backtest whether a tight Stop Loss would hold, since the entry is during a volatile period, and I wouldn't know if the Stop got hit in the same bar unless I have tick data.

Number of trades was going through the roof. With the Momentum Lagging Trading System, I have 24 trades in 4 days averaging 6/day. In comparison, with the other Trading Systems this year, I had 67 trades in 26 days, averaging 2.6/day. With the Momentum Lagging Trading System, 33% (8 trades) hit the Stop Loss with 5 minutes. In comparison, with the other Trading Systems this year, only 6% (4 out of 67) hit the Stop Loss with 5 minutes. So, though the Momentum Lagging Trading System did not cause me a loss, I have to drop it just for the jitters it caused....