Thursday, 25 September 2014

Indicator Y - Good And Bad - Long 2133

Like all other technical trend indicators, indicator Y will also have its strengths and weaknesses.
  • Good - It has fewer stop and reverse trades per month.
  • Good - Fewer trades mean less brokerage payments.
  • Good - Huge profits when it is right on trend.
  • Bad - Its next SAR trade is very far after being triggered.
  • Bad - Multiples losing trades stress traders' good psychology.
  • Bad - Need high capital margin ratio, ideally 5x.
Be a discipline trader with strong psychology and high capital margin ratio is a must if you are following such a technical trend indicator in short term trading strategy.

Now we know that the long 2133 was triggered yesterday 1230pm as given in previous post and it is basically no sign of stop and reverse sell signals for next few 60-minute trading sessions. Even though now seeing good profit... just be ready for big floating loss always, and that is why you need high capital margin ratio.