If I start trading a new system today, should I take a position in an instrument that the system actually would have entered in the past? I figure there are 3 options:
1. enter on new entry signal with new stop
2. enter at today's price with original entry's stop, with appropriate % risk position size.
3. do not enter until original entry's exit stop is met and new entry is triggered.
Any input?
Entering trade today that should have been entered weeks ago
-
Stephen Newton
- Roundtable Knight
- Posts: 127
- Joined: Wed Dec 31, 1969 7:00 pm
- Location: London, England and Cape Town, South Africa
Levijean
I think I wrestled with a similar topic on this forum at:
viewtopic.php?t=5001&highlight=
Leapfrog had some interesting thoughts...
For what it is worth I 'backadjust' - so I exit all positions the 'new' system does not have and adjust open positions to meet the stop and position size requirements of the new system.
For trades that have been entered by the 'new' system some time back and for which your old system has no position... I would like to apply the same principle as above but I have yet to bring myself to do this. If it is one or two positions out of 20 or so, I am in effect betting that they are losers. Perhaps I should toss a coin?
The theory I have in my head says I should take the positions even if they have large amounts of risk at the level of stop your 'new' system needs... theory and heart are not one on this for me yet I am afraid.
I am dead keen not to use discretion in my systems (ie trade what you test) but this is one case where I must admit I really do struggle.
I would be interested if you or some of the other experiences traders have further thoughts or battle scars that might help?
Good luck..
Stephen
_________________
You only truely learn when you fail
I think I wrestled with a similar topic on this forum at:
viewtopic.php?t=5001&highlight=
Leapfrog had some interesting thoughts...
For what it is worth I 'backadjust' - so I exit all positions the 'new' system does not have and adjust open positions to meet the stop and position size requirements of the new system.
For trades that have been entered by the 'new' system some time back and for which your old system has no position... I would like to apply the same principle as above but I have yet to bring myself to do this. If it is one or two positions out of 20 or so, I am in effect betting that they are losers. Perhaps I should toss a coin?
The theory I have in my head says I should take the positions even if they have large amounts of risk at the level of stop your 'new' system needs... theory and heart are not one on this for me yet I am afraid.
I am dead keen not to use discretion in my systems (ie trade what you test) but this is one case where I must admit I really do struggle.
I would be interested if you or some of the other experiences traders have further thoughts or battle scars that might help?
Good luck..
Stephen
_________________
You only truely learn when you fail