Quote:
Originally Posted by levis
S/R indicator used there is based only on simple fractals. You can check it by aplying fractals on the chart. I checked this system on history - its dangerous to use it live  Many times it gives false signals as there are many false breakouts. Think system needs some aditional filter to avoid trading when breakout is not "real".
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Did you use fractals or the S/R indicator when you check the history? It is not dangerous to use live. I use it live right now. You have to watch it live to get a better feel for it and not back test it.
I used to play alot of baseball. I cannot tell you how many times a went to bat. What I can tell you is in a split second I could decide if it was a ball or a strike, If it was a curve ball or a knuckle ball. Most who have played will say the same thing. I could even see the strings on the ball as they were rotating. This would tell me what kind of pitch was thrown. This would tell me to swing early or wait a little longer to let it break and then I would swing. I was able to do all of that by doing it so many times. Trading is no different.
I tell you this because you will decide what is a false break out and what is not. You will know to wait for a candle to close after crossing the S/R or because the momentum, time of day etc. that breaking the S/R will be enouph and you won't have to wait.
Going to bigger time frames can help. If you went to a 1hr candle waited tell the price broke the S/R and then went to lower time say 5 minute to take a better entry but waiting for the candle to close past the S/R then you would be fine.
Trading is not having a system that is a robot and 1 + 1 =2. If you searching for that you will never find it. Find something that is easy to follow and get good at knowing the flow of the trade by watching it live. This trade will make you more wins then any other trade. 1 day or back testing isn't enouph to determine if its a good set up or not.
JS