Re-Entry When it is appropriate strategy

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  • #175485

    Hi, has anyone came across any PRT codes for re-entry considerations?

    One of Van Tharp trading system’s component is Re-Entry Criteria:   quite often when you get stopped out of a position, the stock will turn around in the direction that favors your old position. When this happens, you might have a perfect chance for profits that is not covered by your original set-up and entry conditions. As a result, you also need to think about re-entry criteria. When might you want to get back into a closed out position? Under what conditions would this be feasible and what criteria would trigger your re-entry?

    If anyone has such strategy, or has came across such strategy in PRT codes, appreciate if you can share the links.  Thank you.

    #175520

    Example #1 shows that 4 minutes after closing a Long, another Long is taken.

    Example #2 shows that a long which ran into a StopLoss is reversed in the same second.

    Example #3 shows that a Short is followed by a Long and that both were winning.

    The answer to your question : Dunno; my program decides.
    The only thing which is explicitly in there is the possibility of reversal. Thus, have 100 Long, sell 200 Short within the same transaction (bar). Everything else is decided by Entry mechanisms (good to go or not). Of course, a long followed right away by a long again, is not decided by the Entry as such, but by the Exit rules, which apparently thought it was good to sell. And because we can’t know the future (at least my programs don’t really) the entry right after could have been avoided.

    In theory there’s the situation that two e.g. Longs follow each other closely, but that the second buys at a lower price than the first exited. In my current history I can’t find an example of that – which is a good thing because it would be off to happen (I would have bought in the down-going (though short term) trend.

    Please notice that this is one kind of response, which does not incorporate functional strategies (like when to reverse etc.). I am using technical strategies only without any indicators.

    Less than 2c.

    1 user thanked author for this post.
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