I was talking to some friends and associates recently about market action and the "setup of a trade." If you are interested in trading systems, below are some notes from our conversations.
By way of background, our quantitative trading systems are technical in nature and are tuned and researched for market action, time-frame, and execution. We focus on the intermediate to long-term time horizon -- with shorter-term approaches "in the mix" for diversification and risk management reasons.
In particular, the notes focus on trade entry and execution. We would all like to enter a trade at the best possible price/trade entry. On the other hand, we have heard some great traders and "market wizards" such as Paul Tudor Jones, Bill Eckhardt, or Richard Dennis -- say they prefer trades and markets where execution seems bad; or markets that are "running away" from them.