Hi Be...thanks for the linked video from breakpointtrading..there is some good stuff to consider.
I think it boils down to only a couple of things:
1. What is the trigger point (price level) that a trend change MUST be acknowledged, and action taken at that point?
A. That is something everyone has to decide for themselves...my tolerance and goals are not the same as yours, or necessarily anyone elses.
B. The means of determining that trigger point can be done in many ways..traditional TA uses of moving averages, stochastics, zig-zags, etc. are viable. The principal thing is that the trigger point must always be the trigger point....in other words..in a cross-over there may be the tendency to say to yourself :"well, it's just barely crossed over..maybe it will start to go the other way in the next 15 min, or day, or whatever period you are trading." It is why I like "filling the box". There is no ambiguity..either the box indicating a reversal is filled at the close of the trade period..or it is not. It is a "0" and "1" answer..........those of us who think Boolean, or digitally, can recognize and respect that. Either the switch is closed, or the switch is open.
2. The problem with making a good living using a trend trading system like this is only with ourselves. If we do a reasonable job at 1A of picking a trigger point that will be honored, we cannot fail to succeed in a longer term..
There unavoidably will be whipsaws...guaranteed..that means short term losses. Can you handle that? You'd be surprised how few can..there will also be profits to be made on the longer trends. Staying on the right side of the trend, and not trying to trade against it, in the hope of scalping a few bucks, is the safest, and easiest way to make a living from the market. Let the other guy stew about what is going to happen..wait until it has happened as shown by the Renko chart, and buy or sell as appropriate.
Regards.
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