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Originally Posted by DANlEL
Thanks. Do you think this could work on stocks? What are typical entry-exit time-spans for winning and losing trades? And don´t transaction costs eat up a lot of your profits?
I trade trends like you, but on longer time frames.
Being a commodities guy I never really traded stocks. There are probably stocks where it would work. Look for stuff with large ATR's. HO and RB work well because they have 4-5% swings every day. Not sure how many stocks have those kinds of consistent swings.
Juice and slippage are just the cost of doing business and yes the system has to be able to overcome them. Each contract typically sets up about 2 or 3 times a day and sometimes not at all or as many as 5 or 6. The more signals the worse since it typically means you are getting sliced and diced. This happened to the products (HO, RB) yesterday as they just got chopped up. But Monday was a perfect day as they had a huge up move, a major reversal with a huge down move giving only 2 exceptional signals. The 2 days put together was very good.
But you can trade them as fast or slow as you want by timeframe or channel width.