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Tuesday, May 30, 2006

Keep the faith and follow the system



Today, our trading system was shouting "sell, Sell, SELL". These are the sell signals:

  • 30min CCI bearish since late Friday
  • CCI crossed under CCIMA at today's opening down move
  • Striker was heading down

The only thing that was bullish was 5min momentum. But the signal line is clearly in the negative at -20.

The system recommended three short entries- stochastics crossed down three times and all of them were profitable short entries.

In order to follow the system successfully,

  • Follow the 30min CCI direction and enter trade in this direction (Shortsale for today)
  • Use 5min stochastics for entries
  • NEVER GUESS TOPs AND BOTTOMs.
  • NEVER ASSUME A REVERSAL UNTIL THE SYSTEM SAY SO
  • Forget the market gurus' predictions and other noises. The system will capture the market's actual moves.

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