Fri 9/28/2012. Possible System Tweaks.

Current Position: None
Next Action: Long at 1455.06 (will drop to 1441.61 if SPX closes an hour below 1431.58)
Score (0-10): 10=Bullish=Trend Score + Turn Score=6+4 (this assumes SPX opens at 1440ish as futures currently suggest)

I have 3 ideas for System improvement around the edges.
1. Chart SPX against the Trend Score, Turn Score and Total Score. This will take a lot of time to generate months or preferably years of data and even lonegr to automate it going forward. Although the Score is irrelevant without an action trigger (4-hour candle s/r +/-), I still think it could provide insight into the System, perhaps engender more confidence based on history and possibly help identify another improvement.
2. Use technicals to objectively identify a profit-taking level. Currently, I objectively incorporate daily and hourly technicals in the Score but I subjectively decide when to take the 25% profit allowed by the System. I studied the 15min charts and the same technicals I use at the hourly level appear to identify shorter-term turning points, plus I'm studying a couple other indicators at the hourly and 15min level that may help with profit taking. I don't want to rely on 15min charts much, because I don't always have time to track charts and trade that frequently, but they could be good for profit-taking when I do have the time. This will also take more time to study.
3. In conjunction with more objective profit-taking, I'm considering allowing up to 50% profit-taking. In my new System, I am only allowing 25% profit-taking but that's not much wiggle room, because it's nice to be able to take profits after a 1-2% run as a safety net but it's also nice to be able to capture further profit if a run really grows or gaps. In my old System, I allowed 75% profit-taking but that required too much management and I sometimes took 75% profits too early in large trends. I think 50% would be a good compromise especially if I do it objectively.

These changes will take time and investigation but something to look forward to over the next few months maybe by Christmas. Good luck.