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Hypothetical performance results have many inherent limitations, some of which are described below. no representation is being made that any account will or is likely to achieve profits or losses similar to those shown; in fact, there are frequently sharp differences between hypothetical performance results and the actual results subsequently achieved by any particular trading program. One of the limitations of hypothetical performance results is that they are generally prepared with the benefit of hindsight. In addition, hypothetical trading does not involve financial risk, and no hypothetical trading record can completely account for the impact of financial risk of actual trading. for example, the ability to withstand losses or to adhere to a particular trading program in spite of trading losses are material points which can also adversely affect actual trading results. There are numerous other factors related to the markets in general or to the implementation of any specific trading program which cannot be fully accounted for in the preparation of hypothetical performance results and all which can adversely affect trading results.
Did you know our Remek! Pivot essential indicator automatically and objectively identifies pivots exactly as professionals do it? Pivots delineate market structure, thus providing the foundation to all our trading. Make sure you study page 15 of the best book written on technical trading, then put to good use, as seen below, the exact concept in Remek! code!
We don’t know the future. Luckily, to be successful in trading, we don’t have to. All we need to know is how to quantify probabilities.
In the example below we revert back to our old observation: clues markets cannot help but give away about their intentions often start to unfold on lower timeframes. Subtle clues that we can then use to exploit crowd behaviour on the HTF (trading) timeframe.
One classic example of this is watching for failure tests on lower timeframes, which may lead to the re-emergence of momentum on our higher (trading) timeframe. In summary:
watch for potential failure tests on the LTF
prepare to enter on the HTF if the LTF failure test develops into a re-emergence of momentum on the HTF.
Now, it’s easy to be smart on yesterday’s chart. But we are here talking about today’s chart. Mindful trading!
Remek! Trading Systems, Inc. (Toronto, Canada) specializes in providing trading system development, testing and consulting services to traders worldwide. Remek! Momentum Pro, our self-adapting trading algorithm is designed to trade the re-emergence of momentum out of consolidation areas. For more information, visit www.remek.ca
Remek! Trading Systems Inc. | 11 Shallmar Boulevard, Toronto, ON, M5N 1J6, Canada
