well, i just made a breakthrough in my system after struggling with this issue for months...i found a way to extend my 1-day trades into several-day trades using all my signals and without lowering expected system profits...
i know this seems trivial to most traders as practically all traders "follow the trend", "add to positions", "gradually build positions", "hold positions expecting follow-through", etc...
yet, until now, i was unable to justify such approaches using math/stat as being superior to 1-day trades (with 100% positions for each trades)...
essentially, i will now follow the trend as well (the trend determined by my long/short signals) as long as i don't get a signal in the opposite direction and as long as the probability of a large move against my position is minimal...
actually i did develop it first with spx yesterday...and today with ndx...the problem with ndx is its incredible volatility...
my spreadsheets with ndx and spx daily percentage changes clearly show that while "usually" ndx moves about 2-2.5 times as much as spx percentage-wise, there are dozens of instances where ndx daily moves are either several times larger or several percentage points larger than spx daily moves...
so, i am very aware of this fact as i intend to trade 100% positions (maybe not initially though)...
from the practical standpoint it is much easier for a trader to follow trends even if only for a few days as opposed to engaging in 1-day trades...i am also aware than the best traders all use this approach
(there are specifically two traders that trade qqq plus one trading options plus one trading futures that i would like to try to out-compete...well, at least they give me the reason to throw "everything i have" at this trading game)...
so, we shall see soon how it all works out, won't we?...<ggg>
george
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