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Further Work On St1
I've been back in my laboratory looking at my system ST1. To give you a little background, I once wrote about a signal prover I used for a while whose system kicked ass in a trending market, and that I had back-engineered their signals and figured out what they were doing and could predict their signals for each day before they arrived (hence I stopped paying them of course).
Based on this, it struck me that their system was great for when the market moves, but that they were doing something dumb when the market consolidated. The only reason I could think of for this dumb action was that their customers may not like having no trade open for days at a time, sometimes over a week or more. Thats the only reason for it I could think of. Hence they would make superb gains for a while, then give it all back when the market started chopping wood. Since then I've also learned that their so called 'method' was based upon two old classical trading techniques combined, which I've been researching. Now more than ever I'm convinced that they had a good system, but with a dumb part that they added themselves. So my ST1 is in effect their system (the classical methods) minus what I consider to be the dumb part, plus one or two other things I added, including fixed fractional money management. Thats as of today I am clear about what to do - I just need to discipline myself to actually forward test it for a month or so. Also, they only gave signals for 4 currencies pairs, and I'm going to forward test it on 6 pairs which are: EURUSD GPBUSD USDCHF USDJPY USDCAD AUDUSD Due to my fixed fractional money mangagement and micro-lot account, I can test this in one of my sub-accounts for a month risking no more than $10 -yet the results will be totally valid percentage wise. So no sleep lost there (I always prefere to use real money over demo accounts, even if it is a tiny amount). |
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