It was a downtrend day all the way. I had guessed that the Range Compression Trading System would have entered Short early, and made 200+ points. But checking the charts again, I find that the Range Compression Trading System would have entered a Short trade after 9:45 at 7185, and exited it around 7103. Ohh... Yeah, so not so bad. I will loathe this Momentum Lagging Trading System just a little bit lesser...
Though it was a gap down, and a steady downtrend, there was not much momentum in the morning. The first entry of the Momentum Lagging Trading System was triggered at 1:10 PM, and then things moved fast - maybe, a bit too fast for this Trading System to handle. There were 6 trades overall - 5 shorts (with trend) and 1 long (counter-trend) - all took a total trading time of 52 minutes. This being a 100% Mechanical Trading System, there was not much I could do, except take all the hits.
Differences between the Range Compression and the Momentum Trading Systems
From the Statistical POV, The Range Compression Trading System and the Momentum Lagging Trading System appear to be fundamentally different.... but I guess that the main cause for that is the tightening of the Stop Loss Trailing Rules in the new Trading System. Otherwise, the only difference is in the Entry Rules. While the Range Compression Trading System enters after Price dulls down and compresses into a small range, the Momentum Lagging Trading System enters when the range expands. With the Range Compression Trading System, I was getting too many losing entries during Ranging periods this month. Also, I was missing out on fast directional moves..... and I am still hoping the Momentum Lagging Trading System will star on another day.
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