A good pattern should have the following criteria:
1. It has a clear pattern, which can be implemented in program.
2. It gives out clear signal when the pattern is right!!!!
3. It can give out signal when we should add our position.
4. It has higher winning rate*profit than losing rate*loss
Rule #1:
Assume your position is wrong until you are proven correct. (This ensures to exit your position as quickly as you can, and corresponds with the above criterion #2.)
Rule #2:
Press your winners correctly without exception. Each add of original position should be done in smaller and
smaller steps, such as 3:2:1. (in this way, small reverse won't hurt you too much.)
At all times during the trade it is important that rule one be in your plan. This includes when you are
adding to your positions in order to protect your trade from any major reversals, which often happen
