Refining the Floor Trader Method

Slowly increasing my percentage winners. Today my win percentage was 40% with an average R of 2.90. I would like to be 60 - 70% correct on average, if possible. Since I have included the Bollinger Bands in my method, I have neglected the nature of the pullbacks, i.e. how many bars are included and changes in volatility. Looking back at my losers from today, I see that they most often occur on increasing volatility or on pullbacks with large numbers of bars. This is not new information, but I need to be reminded after including the Bollinger Bands for entries.

Straightforward Bollinger Band entries seem to work much better than categorizing entries in relation to the EMAs, e.g. Level 1, Level 2 & Level 3: BBs get me into more low-risk trades in the direction of the trend. After the BBs generated a number of false signals on the 3-min chart, I am only entering on the 5-min chart, which seems to be more reliable.

As for exits, today was a very bearish trending day and moving stops down would have been exponentially more profitable than booking at multiples of R. (See the WGOV trade below.) I am considering trying to hit home runs all the time, that is, once I am in the money 2R, moving my stop to breakeven and then just letting the stock work for me. I do not know if I can handle the subsequent gyrations in my P&L curve or not, nor is it apparent if this exit strategy is more profitable in the long-run. I will have to see if > 2R winners occur with enough frequency to justify trying to hit home runs all the time.

Here are some winners & losers from the day. You can probably figure out which is which.