Yamato
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Yes, I see what you are saying. By the way, your name and how you used the term "mean reversion", as opposed to "trend", made me think that I may have finally understood once and for all what "mean reversion" means. I suppose that is what I call "bouncing". I do have both "trend" systems and "bouncing" systems, and other systems, and I trade them all (funds allowing). Here's my 9 groups of systems/strategies so far: ON bounce, S/R bounce, Opening Gap, overstretched, Range Breakout, Volat.Breakout, WeekDay Bias, WITH ID trend, WITH ON trend.
If we were to group them in terms of bounce vs trend systems, it would be as follows. Bouncing systems: ON bounce, S/R bounce, Opening Gap, overstretched, WITH ON trend (yes, this is "bounce": it's not a typo), WeekDay Bias. Trend systems: Range Breakout, Volat.Breakout, WITH ID trend. Most of my profit comes from bounce systems, because even if you enter with the trend, you want to enter on a bounce anyway rather than when the market has already gone a long way in a given direction. Those 3 categories left instead do just that: they follow wherever the market has already gone, even though "range breakout" systems do it with surgical precision. So ultimately the famous saying "the trend is your friend" only applies to 2 groups of systems I have. My idea is that the trend is your friend in moderation. It's best to have the trend on your side, but also to rely on other friends, such as hour of the day, support and resistance, and as many friends as possible.
Having all these systems looks very good, but I must add that, as I have mentioned repeatedly, only a minority of them are profitable, even less are very good, and I have only recently become profitable, and that may not even last, due to my past (and maybe future) as a compulsive gambler. Yet I am not a compulsive gambler in any other area of my life, so that is leading me to conclude that maybe I was just calling myself that, because i was desperately looking for a way to increase my capital and make money, but without succeeding. A hard-working trader may look like a compulsive gambler, but once he finds out how to make money, he will make money. And I think that may be my case, even though I did have many symptoms of compulsive gambling, such as having blown out my account dozens of times.
Regarding your combining of systems, I don't know if I got it right this time, too, but if you mean putting together two different edges, that is something I never do. Whatever edges I come up with, even if they produce just 3 trades per year, i keep them as they are and move on to a new system. I keep all edges separate.
If we were to group them in terms of bounce vs trend systems, it would be as follows. Bouncing systems: ON bounce, S/R bounce, Opening Gap, overstretched, WITH ON trend (yes, this is "bounce": it's not a typo), WeekDay Bias. Trend systems: Range Breakout, Volat.Breakout, WITH ID trend. Most of my profit comes from bounce systems, because even if you enter with the trend, you want to enter on a bounce anyway rather than when the market has already gone a long way in a given direction. Those 3 categories left instead do just that: they follow wherever the market has already gone, even though "range breakout" systems do it with surgical precision. So ultimately the famous saying "the trend is your friend" only applies to 2 groups of systems I have. My idea is that the trend is your friend in moderation. It's best to have the trend on your side, but also to rely on other friends, such as hour of the day, support and resistance, and as many friends as possible.
Having all these systems looks very good, but I must add that, as I have mentioned repeatedly, only a minority of them are profitable, even less are very good, and I have only recently become profitable, and that may not even last, due to my past (and maybe future) as a compulsive gambler. Yet I am not a compulsive gambler in any other area of my life, so that is leading me to conclude that maybe I was just calling myself that, because i was desperately looking for a way to increase my capital and make money, but without succeeding. A hard-working trader may look like a compulsive gambler, but once he finds out how to make money, he will make money. And I think that may be my case, even though I did have many symptoms of compulsive gambling, such as having blown out my account dozens of times.
Regarding your combining of systems, I don't know if I got it right this time, too, but if you mean putting together two different edges, that is something I never do. Whatever edges I come up with, even if they produce just 3 trades per year, i keep them as they are and move on to a new system. I keep all edges separate.
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