How many trades go immediately in the direction of the trade? Regardless of how much time we spend developing trading systems using the best practices, most of the time, we get volatility around the initial entry. 15 points in the Nasdaq is a split second move in many market environments.
Even when we spend many hours developing strategies to find the best way to trade, it's not always easy to code a strategy to enter at a better price. You have to be more of an advanced coder to "mark" what would be the initial entry price and then keep track of the initial price in regard to future exit price updates or setting up a better entry price within the same strategy. If it isn't on the same bar, the strategy could lose track of the entry signal unless there are more advanced coding techniques.
The Pinpoint Entry Algorithm is one of my favorite entry techniques in the Money Management Algorithms to quickly test a more efficient entry technique especially in today's markets where chop has become more of the norm. We simply create a new chart and setup the Money Management Algorithm to "look at" the base strategy and then trade live using the Pinpoint Entry Algorithm aka Better Entry Algorithm. The Better Entry Algorithm is only one of many rules in the Money Management Algorithms.
In this video, we demonstrate how waiting for a 15 point adverse excursion from the initial entry improves the hypothetical backtest for the V-Reversal Combination 24 strategy. We demonstrate this with the Money Management Algorithms in NinjaTrader 8.
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