First Entry

The first entry is difficult. It is very difficult to time the entry for the trend following strategy. Sometimes it is better to not time it at all. I think today is not the day for an entry on the market, because we do not know if the trend is going to continue or to reverse.

The idea is to evaluate in a stress free environment. When you risk 150 $ you are stress free, but who knows. The idea is that very often when we enter into a trend following we face the following problem.

People tend to take their profits too early and to hold loosing positions for longtime.
In fact in order to succeed in our experiment we have to force ourselves against our natural drive. That means that when we see a winning position we are not going to close it when we see an averse price action, we will let it breathe. On the other hand when the position is negative if it exceeds the stop loss level we will close it without remorse.

We are doing that not from a day trader perspective. We are not going to check everyday our deals. The money has to work for us. Right!