Restrictive Trading Systems by Anthony Trongone
Looking for a trading system that offers more success and less
risk? Try this one.
When it comes to profitable trading systems,
not much has been written on those with
restrictive trading conditions. Although a
system that generates less trading activity
may demonstrate a strong and consistent
record of success, it does not have the same allure as a system without restrictions. It can, however, offer
more success with less exposure to risk.
When trading price patterns with restrictive conditions,
patience is a precious resource. You should not be discouraged
if you are not playing your system on a regular basis,
especially if you can uncover a handful of highly dependable
plays to supplement your trading activity.
This article focuses on a single strategy that was applicable
in 29 of 334 trading days (8.68%) from January 1, 2002, to
April 30, 2003. Although the system is restrictive (one
playing day for every 11.52 trading days), the results are
worth the wait.
There are several benefits to this trading strategy. First, it
involves simple trading conditions. You do not have to place
your trades during the regular trading day, when the market
fluctuations can be distracting and sway you from implementing
your strategy. Your trades can be executed between
16:00 and 20:00 ET. Although you can also place your trade
during the premarket trading session, this should be done
before the market begins to move from the previous day’s