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It is nice to see a useful message on this group once in a while... I just
want to reiterate a couple of the key points Mark made. Using the close of
the bar to do your trades requires only 1 tick to be accurate for the time
span of the bar as opposed to EVERY one. If 1 tick on a 60 min bar is bad,
your hi/low is screwed.
Second, and I think more importantly is that 60 minute bars allow for a
higher comfort level in almost every way. Most (actually every) successful
system traders that I talk to have matured to the point where they use longer
time frames and looser stops. They are not shooting for 100%+ returns, but
rather just consistency and beating the averages by a reasonable margin. 5
minute bars are fun to watch, but to be consistently profitable, I have found
that to be a successful trend follower you have to hold on loosely.
Good luck trading,
Seth
P.S. If anyone has experience successfully systematically trading
counter-trend, I would like to hear their input. I work with a bunch of guys
making money fading moves, but they are seat of the pants...It seems most
institutional traders fade moves as opposed to follow trends, but none are
systematic.
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