Obviously, and testing verifies this, there are two issues to manage:
1) Getting whipsawed.
2) Entering the trend too late.
I believe that I can at least alleviate these issues somewhat. Technical indicators can provide clues about whether or not the market is currently trending -- such that if it isn't trending you can avoid opening positions. Additionally, I believe I can impose restrictions that will greatly reduce purchases near the end of a trend.
Even with these two problems I am able to see spectacular gains temporarily. Trends with few reversals and a slow conversion to the opposite direction yield very high profits... so I can see the potential that is available.
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