re: a post for arfur on w.d.gann ... arthur
Hi Arthur ... with respect to the above ... the hit rate I mentioned was 65% and relates approx to 2:1.
My trading method as most know is designed for EARLY ENTRIES to catch the initial bounce which specifically aims to cover my costs ...
Following that, an ENTRY will either confirm or not and in that case I let the trade run which is combined with a trailing stop ... usually 2%.
Where an ENTRY fails to confirm the stop is triggered and I ruthlessly close out ... no questions asked ... bye bye.
I usually go back to the chart and conduct a post-mortem to see why I chose to ENTER ... and belt myself one.
This method covers my costs and even where I stuff-up I minimise any loss and thereby protect my capital which is the name of the game.
Current Market conditions have made trading extremely difficult as we know ... it is hard these days to get any solid run and it means I am often stopped-out which is frustrating ... so it means more trades and smaller profits. The lesson is to trade the Market whatever this fickle mistress throws our way.
We have moved out of Warrants and back into ETO's and so far are ahead of budget.
