The experiment has involved going dorsum to my query in addition to identifying robust, replicable patterns inwards the ES futures contract in addition to SPY ETF. I specifically selected patterns that play out over a multiday period, amongst average asset times of several days. The patterns demonstrated a distinct border inwards 2012 in addition to 2013 trading in addition to and so were tested independently on 2014 information equally an out-of-sample exam in addition to and so were farther tested independently on 2015 information to date.
Now it's fourth dimension for alive trading.
There are 3 full general patterns:
1) Failure Pattern - Influenza A virus subtype H5N1 marketplace advance loses breadth in addition to momentum in addition to reverses.
2) Reversal Pattern - Influenza A virus subtype H5N1 marketplace reject leads to wide weakness in addition to expanded volatility, resulting inwards a reversal bounce higher.
3) Momentum Pattern - Influenza A virus subtype H5N1 marketplace ascension occurs amongst corporation breadth in addition to momentum in addition to continues higher inwards the curt run.
In the experiment, I volition alone merchandise those patterns. That agency enough of days of non trading in addition to sizing upwards days when patterns occur. Each designing is defined past times a scorecard of criteria; if all criteria are non met, no merchandise is taken.
A outset unit of measurement of risk is entered when the holler for fires; farther units are added on evidence that the holler for is playing out equally expected. Entries in addition to exits for those farther units are discretionary, based on intraday trading patterns.
A magazine volition rail all signals in addition to trades in addition to how I traded them, amongst observations translated into goals for continuous improvement. The experiment is thence too an experiment inwards self-coaching. I promise to portion lessons learned via the blog.
At the arts and crafts beer networking trial a calendar week from Th (May 21st), I volition speak over the projection farther amongst interested traders. Influenza A virus subtype H5N1 let on almost that trial volition acquire out this coming week.
Imagine if a grouping of likeminded, dedicated traders conducted their ain experiments in addition to shared results. That would generate quite an accelerated learning curve. There's a big divergence betwixt years of marketplace sense in addition to a unmarried year's sense repeated many times over. That divergence is deliberate practice in addition to a structured learning from experience.
Further Reading: Identifying Trend Days
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