Tnsn
When we back test a strategy we are essentially looking at the TF we want to trade. For instance suppose I am trading the 30min on NF, I have back tested the 30min only and formulated a strategy. My entry, SL, TSL and exits are determined by looking at the 30 min candles only and not any lower time frame. I am not looking at the internals of the 30min candle but when we are trading live, we are not watching discrete shots of the market but the continuous movement. We are looking at the market tick by tick and suddenly decision making can go awry when you watch a lower TF than what you trade.
Here is where your idea of "review intervals" is of great help. I called it "snapshot trading". My back test is only snapshots of the mkt every 30 min hence my live trading should also be same for me to replicate the results of the back test.
So the ideal would be to put on the trade, put on the SL and watch it only till the SL needs adjustment to bring it to BEP. After that move away from the system and come back to see the market only at the end of each 30 minute candle to make any adjustment to TSL if required or exit if the time stop is hit. Like I said, that is the ideal. But although I do not make any adjustment before the candle closes to stay away from the screen once in trade needs tremendous will power. The best I manage to stay away is about 10-15 minutes. I do not have to do anything during the forming of the 30 min candle but still feel the need to watch the trade.
How do you manage to be away in between your review period?? What is your thought process during the gap?
When we back test a strategy we are essentially looking at the TF we want to trade. For instance suppose I am trading the 30min on NF, I have back tested the 30min only and formulated a strategy. My entry, SL, TSL and exits are determined by looking at the 30 min candles only and not any lower time frame. I am not looking at the internals of the 30min candle but when we are trading live, we are not watching discrete shots of the market but the continuous movement. We are looking at the market tick by tick and suddenly decision making can go awry when you watch a lower TF than what you trade.
Here is where your idea of "review intervals" is of great help. I called it "snapshot trading". My back test is only snapshots of the mkt every 30 min hence my live trading should also be same for me to replicate the results of the back test.
So the ideal would be to put on the trade, put on the SL and watch it only till the SL needs adjustment to bring it to BEP. After that move away from the system and come back to see the market only at the end of each 30 minute candle to make any adjustment to TSL if required or exit if the time stop is hit. Like I said, that is the ideal. But although I do not make any adjustment before the candle closes to stay away from the screen once in trade needs tremendous will power. The best I manage to stay away is about 10-15 minutes. I do not have to do anything during the forming of the 30 min candle but still feel the need to watch the trade.
How do you manage to be away in between your review period?? What is your thought process during the gap?
, (but thanks for that interesting piece), but the gaps between your 'review intervals' If you are day trading and if your review interval is 30 minutes, how do you manage those 30min without looking at the trading screen??
