What is the best way to cut reduce short term whipsaw trades?

This is a discussion on What is the best way to cut reduce short term whipsaw trades? within the Trading Systems forums, part of the Methods category; In a development strategy, trades <= 5 bars most often lose while > 5 bars the majority make money. If ...

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Old Mar 29, 2017, 10:46am   #1
 
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What is the best way to cut reduce short term whipsaw trades?

In a development strategy, trades <= 5 bars most often lose while > 5 bars the majority make money. If I widen the stops for 5 bars after every trade this removes the shorter trades but they become losing 6 bar trades as the trades just get delayed until after the stop widening ceases on the 6th bar. What is the best way to reduce short whipsaw trades like this without just shifting the losses elsewhere? Even a 5% reduction in whipsaws would lead to a big improvement
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Old Mar 31, 2017, 7:20am   #2
Joined Mar 2017
5 minute bar isn't the same as 30 minute, 1h or daily bar just by looking at candle charts, so I don't know which type of chart is mentioned in the post. But if you want to make money consistently, the best way is definitely not trading at such a fast pace, i.e. using 5-6 bars, this will only make you lose more in the long run.
Patience won't hurt you, and it's the mother of W Baffett's huge success in the stock market.
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Old Mar 31, 2017, 7:53am   #3
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Markets don't move in regular patterns of a certain number of bars or a certain number of pips/points or a certain number of days/minutes. These are artificial constructs traders try to impose on chaotic data to make rational sense out of it but it ultimately cannot work to your benefit.

Take the behaviour the market exhibits and adapt your strategy to it. after all, it cannot be rational to take a strategy and expect the market to conform to your rules.
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Old Apr 9, 2017, 6:45am   #4
 
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Quote:
Originally Posted by biovizier View Post
In a development strategy, trades <= 5 bars most often lose while > 5 bars the majority make money. If I widen the stops for 5 bars after every trade this removes the shorter trades but they become losing 6 bar trades as the trades just get delayed until after the stop widening ceases on the 6th bar. What is the best way to reduce short whipsaw trades like this without just shifting the losses elsewhere? Even a 5% reduction in whipsaws would lead to a big improvement


I've got something that works well for that.
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Old Apr 9, 2017, 6:48am   #5
 
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Not sure this is working, maybe it's over moderated and that's why the thread counts aren't robust.

There are ways to do it.
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Old Apr 9, 2017, 9:07am   #6
 
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Go with the trend on minimum 30 minute TF.
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