The main modifications in this release are:
- That the Relative Strength Index should be carefully assessed.
- The FOA system – Find, Observe, Assess – makes it more structured. Of course there is never as clear a compartmentalisation of these when you’re working a live instrument.
- Numbers added in various parts, reference where I am in working on this as it develops.
Diagram/algorithm needs clicking on for a full screen view. The NASDAQ earnings calendar is used to find ER dates and other data.
This is not a system of rules. As mentioned elsewhere, ‘Rules are made for fools’. You vary and modify to suit your own needs. On some occasions you may need to break your own rules. On some occasions you may see something different – and having seen the killer opportunity, you just need to vary things. Do it – but of course assess the risks involved. In trading, you’re the boss!! Nobody should tell you what you should do, from any system or set of rules.Is your loss acceptable. Is the big question. Can you go to bed and sleep well with the expected loss? That is the big question.
Even if you break your own strategy or set of rules and you lose, it does not mean that you should not have done so? You may have made a perfectly good assessment and risk analysis but the market moved against you. The market is the boss of itself, you are the boss of you.
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