I reviewed quite a bit over the weekend and was looking forward to starting anew, but today when I looked at futures, Eminis are rallying 1+%. Holy cow, that's going to suck tomorrow. Thought there might be a reprieve to cover the shorts at a better price so now I'm pissed I'm going to cover at worse prices.
There were a couple problems with my system
1. In the v2, I would take positions at the start of the timing window. Initially I thought this was ok, but instead I really ought to take action at the close of the timing window.
The reason is there have been a few instances in this rally (and others) where it seems the Aroon 3 flips from positive to negative (or vice versa) by the time the hourly bar is done. If the Aroon 3 turns negative, then I want to be taking the opposite position (if Aroon is negative, go long and conversely if Aroon is positive, go short).
A recent example is the hourly close on September 6th. The hourly bar flipped Aroon to negative but at the start it was positive. Hence why I took a short position at the start. What should have been done was taking a long position at the close.
If I had taken the long, then I wouldn't have been entering the next leg of the wave short.
2. the other problem was holding onto these shorts far too long. I violated one of the basic tenets in not honoring my stops. Really bad sequence of events this past week and a half.
Anyway, here's looking forward to the next several months.
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