Hello Abhi,
In post354908, I highlighted false crossovers of ADX14, 9SMA in 2 RED ovals.
Image at..
http:// www. traderji. com/attachments/advanced-trading-strategies/13002d1251461004-system-trading-best-if-used-systematically-nifty.jpg
You are correct that there were No false crossovers in 2nd RED oval, but there were indeed in 1st one.
Any views on how to take care?
Just looking at the chart, I think we must ignore those crossovers which are below some threshold say, like if ADX(14) is below 20 or 25 or some value, ignore ADX crossovers.
What say?
-ritesh
among all posts i got here , i think , u are r getting the technique in exact sense , system trading is based if used systematically ,that was the theme , every body here shown concern about system but no body about manual intervention and applicative approach and how to trade this system .
in post no 30. i shown the following results .
1) 19/06/07 LONG : 4732
18/07/07 EXIT :5351 ( PROFIT =619)
2)16/01/08 SHORT : 5935
15/02/08 EXIT : 5302 (PROFIT=633)
3)30/5/08 SHORT :4739
10/07/08 EXIT :4162 (PROFIT =577)
4)16/09/09 SHORT :4074 (PROFIT=932)
04/01/09 EXIT :3142
5)24/03/09 LONG :2938 PROFIT(1491)
08/06/09 EXIT :4429
TOTAL PROFIT =4252
LOSS =0000000000
i ignored 4 false signals (yet of small differences )
but if u look back ,there was a reason
1st ignored signal was next signal after 15/02/2008 exit , which was profitable ,still i didn't counted ( because a cut had already happened just few days/weeks away and i prefer to avoid falling adx re-entry signal
2nd ,3rd,and 4th were in may08,jan and feb 09 .
i acknowledge 2nd signal and u may count it but in 3rd and 4 th case u can see an interesting thing ,from 4/1/09 ,prices were swinging(rising and falling) but adx was continuously falling and market was very much range bound due to confusion , also it had already fallen a lot so next signal should be positive and with little bit more confirmation which gives idea that to make lot more confirmation to take a right position there ,
ignoring signals below adx(14) <20-25 is also good and it gives results also , but it may reduce ur profit potential , so in confusion , look technically and better to see for other techniques also , trend line , regression channel , volume , moving average like simple techniques gives good idea in such situations .
happy trading
abhi
