50/25-day breakout
The buy signal is a new 50-day high in price while the sell signal is a new 25-
day low in price. The sell short signal is a new 50-day low in price and the buy
to cover signal is a new 25-day high in price.
100/50-day breakout
The buy signal is a new 100-day high in price while the sell signal is a new 50-
day low in price. The sell short signal is a new 100-day low in price and the buy
to cover signal is a new 50-day high in price.
Once again I would like to reiterate that this system
requires very small position
sizes to limit the potential for losses if the trend reverses soon after entry. Any
one-position size is dependent on the volatility of the market you are trading, but
a maximum position size would be between 0.2% of trading capital to 2% in
most circumstances using this system. This is not a trade big to get rich system,
it’s profitability is based on diversification across multiple markets and
uncorrelated positions with long-term capital growth
by being exposed to the
right trends.
These trading systems were fully back tested and examined in Andreas Clenow’s
book “Following the Trend” Check out his book for a step-by-step guide.
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Table of Contents
Trading price action
instead of fundamentals
Trading price signals instead of emotional signals
Reactive technical analysis versus predictions
Different types of markets (range bound, volatile, trending)
Additional
dynamics to consider
Why you build your own signals
How to build your own signals
Mechanical versus discretionary systems
Basic
signal examples
Basic system examples
The Legendary Turtle Traders System
Simple trend following systems
