SQ X is a great tool. It will help you develop strategy quickly. BUT you had better have a philosophical understanding of the trading system or trading.
Trend, and the choppy swing will alternate in the market. Trend, swing, trend, swing …
So there are two basic method, trend follow and counter-trend.
The trend in the 1 hour time frame may be a swing in the day time frame. And If you want trade the swing in 1 hour time frame, maybe you can trade the trend in 5 minute time frame. But the smaller the time frame, the greater the market noise, and the favorable moving is too small to cover your trading losses, so it is not easy to make money.
Trend-following trading is a robust method, except in the field of high-frequency trading. That is the way.
“IN A LOSING GAME SUCH AS TRADING, WE SHALL START AGAINST THE MAJORITY AND ASSUME – WE ARE WRONG UNTIL PROVEN CORRECT! (We do not assume we are correct until proven wrong.) POSITIONS ESTABLISHED MUST BE REDUCED AND REMOVED UNTIL OR UNLESS THE MARKET PROVES THE POSITION CORRECT! (We allow the market to verify correct positions.)”
—— Phantom of the Pits
There is an exit method by the position period in SQ X, Exit after X bars. If it can distinguish between position with profit and loss, I will be very willing to use it, and believe that it can improve the performance of our strategy.
Something is like this.
1, Exit after 3 bars if the position with loss great than 100 pip, or 0.5*ATR.
Exit after 15 bars if the position with profit great than 150 pip, or 1.5 * ATR.
2. OR USE Exit after bars with loss only.
There is a request issue already, but the description is not very detailed. And I hope the development team can pay attention to this feature.
thanks for the tips. That’s a good book – Phantom of the Pits. There are some good points and insights worth considering
What you suggest about the “Exit after # bars” function – if position is losing money after certain amount of time you would trim or close it – it can be done using AlgoWizard though …
It is quite easy to setup this. Have you tried yet? Let me know I can help
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