Interesting comments. Some I have to disagree with on principle.
When you say this is a counter trend trader. It isnt suposed to trade the counter trend, it uses the counter trend as an swing entry into the trend. Typicaly it should be able to hold this on an indicator signal, and ride the trend to its limit.
The program does not enter the counter trend. It detects the counter trend and enters on the first sign of trend continuation. Which can then be held until failure.
The problems with this kind of strategy occurr during flat ranges where it can get easily whipsawed, and any time the trend reverses. These are typical problems with a moving average system where there is a lot of lag.
This brings us to the entry problem. The system doesnt enter early, it enters late. A smoothed moving average ia a very laging indicator, it always misses the pivot by a large margin, both on entry and on exit. This can be seen easily by comparing the indictor signals with the price bars.
This is a typical trend trading strategy of sacrificing the tops and bottoms and trying to capture the middles. The advantage is it doesnt get kicked out on fluxuations easily. Its made to hold a trend.
This may be the best way to use this robot, as a good way to enter and hold a trend. |