I had a good day today. Still not capturing all that I feel I should, but I feel like I'm getting back on track. I need to start keeping score based on the number of "good signals" I take and the number of times I try to "jump on" a trade late. Based on my track record, I am far better off fading the move for a 1 point counter trend scalp trade than I would entering the trend trade late with a 1 - 2 point stop. I respect what FlatWallet is doing keeping score on a two week count down to consistently follow his method. I should come up with something similar for my discipline.
What about the Indicators
Thought I'd share an update showing my two filter indicators CAT (Purple) and Mini ADV (Blue). Thanks go to Dr. Brett for inspiring these indicators. The CAT is a copy of his Cumulative Adjusted Tick, and the Mini ADV is a twist I created based off of his Relative Dollar Flow. As you can see in the following 1-minute chart of the ES for today, both of these indicators tracked with the trend fairly well.
The CAT mimicked all of the swings the best. But overall showed more weakness today than is reflected in the actual price action. Turns are more often than not signalled late as well.The Mini ADV signalled the turns much better. I added yellow vertical lines to compare the turning points through the chart. Several of the turns were double tops or bottoms and I only highlighted the candle with the most extreme tick reading of the two. Mini ADV either "turned" at the first top or bottom or "turned" between the two.
I need to do a lot more research with these "filter" indicators. They did help me today to stay with what seemed like the constantly changing trend. I specifically want to figure out why the Mini ADV did not represent the first swing lower.
Trade Wise, Trade Well
John
No comments:
Post a Comment