Not wanting to brag or anything, but my 3 strikes long strategy gave 2 entries today - each yielding 400pts. I had one wiplash costing me 50pts, but in all, a 750pt day. Will supply details for those who are interested
Even simpler - I have committed to my AGL, BIL, NTC etc . I sell after a good run. And then have a rule - I must buy them back. I am always long. Always making money out of these positions as they climb over the years and don't care if the market crashes. Not optimising my trading - but it suits me. Although - if things look particularily weak - I'll take a short on the TOPI as insurance.
OK guys, the gyst of the 3 step long system is really quite simple. It is a money management system. If the TOPI is trending up, and the best measure for trend, IMO, is the stochastic oscilator - with fast stoch > slow stoch, then there is a better than 70% likelihood that the topi will close higher than it opened. This you can backtest on any platform, like Amibroker, or any other platform. The reciprocal also applies, but is not quite as powerful - but it is in excess of 60%. So the 3 step long system is really a bottom picking strategy. You have 3 shots at going long, whenever the current action is below the opening price. There are dozens of long entry signals, but this you have to work out for yourself. It is the money management that is important. So if you are prepared to place a 50pt stoploss, and you aim for 100pt gain minimum, then you can afford to be wrong 2 times out of 3. SO providing you stick hard and fast to the money management rules, if you haven't managed to catch an uptrend early in 3 attempts in a day, then give up and wait for the next day. Simple money management rules are that 15% of the time, you will lose 150pts. 25% of the time, you will make 100pts and 25% of the time you will make 50pts. The trick is to protect your 100 pts, but not to take profit necessarily. You want to ride out the winners, so once you hit 100 pts, move your stop to breakeven. Once you hit 150pts, set your stop to the 100pt level, and then let your profits ride. THere are some obvious reversal patterns on the daily charts that will negate any long trades, but that is a separate topic.Also, anything more than a 60% retracement off yesterday's trading range high, must be treated with care - there are rules for overriding, but best to stay out.