Hi Jibes,
I think if you look at september last year and you update on the first of each month, you would have missed the downwards action that took place somewhere around the 21th sept.
If you update at the 15th of each month you would not have missed the action and made a nice profit in the rally that followed.
For slow major downwards trends updating monthly, quarterly, half yearly, yearly etc is beneficial for obvious reasons.
For quick moves downwards (capitulation movements, running for the exit movements) price driven action could take over from fixed monthly day based action. Otherwise you miss the subsequent upside.
Is there a criteria when to move from regular action to price driven action? There are always indicators. Look at Tom Idiot wave for example. All bullish. You own indicator set.
When the market is around or above the mean, take time based action. When the market is well below the mean goto price based action. Amplify the buying when well below, look at Don Carlson adaptation. When well below the mean or reference point the chance of returning to the reference point is greatest, some economist proved that:).
Of course when prices are well above the reference point the same strategy applies symmetrically to selling.
Another indicator is your own happiness. Adapt the parameter set until you are happy.
In europe we see some euro strength related buying opportunities now. Is it slow or fast movement? Who knows?
I am following the amplified buying strategy now, because I know that if I don't, my happiness will suffer. At least that is what life taught me. This time could be different.......
Kind Regards, K
AI
