So it looks like you can keep yourself from taking a crapload of bad trades by simply adding a simple 200MA to the chart. Check out the below chart. Due to the fact that we will ONLY be trading with the trend, I've decided to change the entry rule to TDI above/below 50. In other words, we wait for the TDI to cross back over the TDI signal and take the trade as long as the TDI is above 50 for a short or below 50 for a long trade. As you can see below, the original system would've failed four times and would've been profitable only twice:
Old Sytsem:
Winning trades
Nr. 1
Nr 8
Lossing trades:
Nr. 2
Nr. 4
Nr. 5
Nr. 6
The new system went 3 for 4:
Winning trades:
Nr. 1
Nr. 3
Nr. 8
Lossing trades:
Nr. 7
Let me know what you guys think. this could be huuuuuge from smaller TF charts! The possible birth of a really nice scalping system! I amgoing to need some help with manual backtesting...
Old Sytsem:
Winning trades
Nr. 1
Nr 8
Lossing trades:
Nr. 2
Nr. 4
Nr. 5
Nr. 6
The new system went 3 for 4:
Winning trades:
Nr. 1
Nr. 3
Nr. 8
Lossing trades:
Nr. 7
Let me know what you guys think. this could be huuuuuge from smaller TF charts! The possible birth of a really nice scalping system! I amgoing to need some help with manual backtesting...
When trading: "Empty your mind, be formless. Shapeless, like water."