I have automated with a rule on tennis after studying years of log, I must say that thinking about the gain of 3/5 tick works well. I have only one problem ...
manage the stop loss to avoid the loss of 100% of the stake, even if in the long run it is not a problem but it would increase the profit.
I generally start at the beginning of the first set looking at the quota, score and trend
what exit strategy do you recommend?
[TENNIS] exit strategy
- ShaunWhite
- Posts: 9731
- Joined: Sat Sep 03, 2016 3:42 am
Stops are funny things. Sure they stop loses, but they also stop those that look bad but come back. There might even be an argument for increasing your position at what you thought should be a stop. Without the data or at least a lot of live testing, there's no way to know.
I'm no guru but in my experience I haven't found a strategy that's improved by using stops and I haven't heard anyone I trust saying that they do. Even without exploring stops too deeply I concluded that stops can't work through simple logic. If you could just let the winners run and stop the loses in a market where the entry price was fair (which it usually is) then trading would be a piece of cake, we'd all be millionaires, and we're not. Stops are too good to be true, therefore they must be false.
Stops aren't really intended to be used in fast moving markets anyway, they came about so that stock traders could dare to take lunch or go home and sleep. They're a safety net in that situation not a strategy.
I'm no guru but in my experience I haven't found a strategy that's improved by using stops and I haven't heard anyone I trust saying that they do. Even without exploring stops too deeply I concluded that stops can't work through simple logic. If you could just let the winners run and stop the loses in a market where the entry price was fair (which it usually is) then trading would be a piece of cake, we'd all be millionaires, and we're not. Stops are too good to be true, therefore they must be false.
Stops aren't really intended to be used in fast moving markets anyway, they came about so that stock traders could dare to take lunch or go home and sleep. They're a safety net in that situation not a strategy.
- ShaunWhite
- Posts: 9731
- Joined: Sat Sep 03, 2016 3:42 am
I'm not advising anything, I'm just saying that stops aren't a simple subject.
They can be hit by spikes in otherwise winning markets, much in the same way as you can have profitable spikes in losing markets.