Entry and Exit Confessions of a Champion Trader: 52 Ways A Professional Speculator Gets In And Out Of The Stock, Futures And Forex Markets by Kevin J. Davey

Entry and Exit Confessions of a Champion Trader: 52 Ways A Professional Speculator Gets In And Out Of The Stock, Futures And Forex Markets by Kevin J. Davey

ENTRY #1 – “GO WITH
THE FLOW”

General Concept
Two common trading adages are “trade in the direction of momentum”
and “cut your losses short.” This entry epitomizes both of those.
First, the entry uses a 1 bar momentum – the close of the current bar
minus the close of the previous bar. It trades in direction of that very short
momentum.
A second condition is as soon as a bar closes with a position showing a
loss, the position is reversed.
I have used this entry in the metals sector.

Tradestation Code
Var: openloss(1000); //allowable loss per contract
if close<close[1] and (openpositionprofit<-openloss or
marketposition=0) then sellshort next bar at market;
if close>close[1] and (openpositionprofit<-openloss or
marketposition=0) then buy next bar at market;

Entry and Exit Confessions of a Champion Trader: 52 Ways A Professional Speculator Gets In And Out Of The Stock, Futures And Forex Markets by Kevin J. Davey