I sold around 820 when the lines crossed - but now they've crossed again but it didn't crash enough - don't want to buy in the 800's...just wondering - are you still following this method?
did you sell at 825ish and are you now buying back in?
In a rigorous system, such trades happen sometimes. If you look at the backtesting data, in fact, it happens pretty frequently... but the system still makes money, even including those rough patches.
So you can be reasonably confident that even if you buy back in in the 800s, you'll still make money in the long run.
Now, if you want to start second-guessing the system, you don't have that guarantee anymore. There's
no way to tell whether your improvised method is going to make money in the long run, because you can't add gut reactions like "don't want to buy in the 800's" to the model.
This is why discipline is so important when you're trading on a backtested system.