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Old 12-14-2006, 05:26 AM
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Cyclesurfer Cyclesurfer is offline
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I like your idea. However, there are times when it would be silly to randomly enter the market. When the price is in a strong downtrend and you look at it and say "okay, ill flip a coin...the coin says to buy" that would be one of those times. Ofcourse, you are still right that just to be in the market gives you a 50% chance of winning because, frankly, the current trend doesnt mean all that much to us because we dont know how long that trend is going to last. "The trend is your friend, unless its about to end" comes to mind, so you may be onto something. Id still say using an indicator like Brain Trend to enter that down trend as it recovers from a retraction would give you a 70% chance against 50% that it will reverse though. There is one more thing that I see. You say that you would enter a position from the opposite direction if you got stopped out. So if you got stoped out of a sell, you would buy. The market doesnt usually work like though. If it goes up 50, its probly going to retract atleast 30 before it keeps going up. And that is assuming that it is even a new uptrend. If its not, then it will either retract or keep falling and you would find yourself $100 short. Id say your better off just using BrainTrend to try to predict the new trends. I still like your idea though, it has a certain charm and logic, think we need to work those issues out though.
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