Developing trading strategies goes well beyond finding setups to generate buy and sell signals. The results of using maximum favorable excursion and maximum adverse excursion analysis led to developing procedures for managing the risk and taking profits at more opportune points than simply waiting for the market to reverse direction enough to stop you out.
The most valuable lesson is that having tested procedures moves you from worrying about what the market will do and toward taking the appropriate action based on what the market actually does.
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