RELOOKING AT MY INVESTING PLAN

I was noticing during the past few weeks that my trading signals were not triggering as I expected them too so I went back to my trading manifesto to re-analyze my situation. Then going back into my MetaStock software, I noticed that I had keyed in something wrong. That is what you get for doing your own computer programming. One little mis-stroke and it changes the whole plan. So here is what I have set up

DMI = 13
ADX = 8
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Rules for TREND TRADING:
BUY when:
ADX >25 and +DMI is above -DMI
SHORT when:
ADX >25 and -DMI is above +DMI

Notice that the ADX is above 25 in both buying and shorting!!! The only difference is the position of the DMI. This is a trend-trading system so the number of signals will be few and far between. If you are trend-trading, DO NOT TRADE AT ALL IF ADX(8) IS LESS THAN 25.

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Rules for NON-TREND TRADING:
BUY when:
ADX <25
SHORT when:
ADX<25 and +DMI is above 25

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Rules for trading BREAKOUTS:
ADX less than 25
ADX less than both +DMI and -DMI
Better if ADX < 15 Draw trendlines to confirm breakouts Better is ADX < 25 for more than 30 time periods Also wait for move back to 20 d EMA to purchase
BUY when:
+DMI breaks above 25 AND the trendline is broken to the upside.
SHORT when:
-DMI breaks above 25 AND the trendline is broken to the downside.

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Quick synopsis:
TRENDING:
BUY:
ADX(8) >25 and +DMI(13) above -DMI(13)

SHORT:
ADX(8) >25 and -DMI(13) above +DMI(13)

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SCALPING IN NON-TRENDING:
ADX(8) Buy when -DMI(13) > 25
Short when +DMI(13) > 25

Good luck trading.
JD