If you see the closing price extended above short term moving averages as we have seen for over two weeks, keep in mind that price can go down to hit the averages at any time. In this case the decline didn’t even go through the 18 day SMA.
It’s important to have a plan for negative intraday feedback. For example, one could exit a long after the prior day’s low is penetrated. Psychologically easier said than done, and even then chances are that move might not turn out right in the end either.
The chart structure at the 9/2/20 close wasn’t good.
The algorithm strategy return stream will seem bizarre to a human experiencing it. It may seem easy to suppress weak human emotions while the algorithm rakes in money, but it is not easy and you probably don’t want to suppress feelings that are meant to help you survive. It’s not worth turning yourself into a monster over a little money.
The algorithm doesn’t have emotions, so it has no trouble being long here. No way will I be long going into the weekend.
I didn’t buy into the August rally much because I was scared early about September/October. I’m not less scared today.