I'm really trying to explore my options on exits when using Blackbird and Bloodhound together. To help with this discussion, I'll provide a simple example:
My example here is a MACD, always-in-the-trade system. I'll heavily modify the input variables from 12,26,9 to something like 20,100,9 to attempt and capture a longer swing trade. So in this simple system, I'll go long when the bottom of the MACD, and get the first sign of heading up (by comparing each bar measurement of the MACD histogram) The opposite would be done for shorts. In this way, I would in theory be always in a trade. Sometimes the market would be optimal for this sort of thing, when the market is making extreme moves in one direction, and then reversing and going in another extreme move.
If that were the case, my system is done, but that's not very realistic. Sometimes you would enter a trade, and the market will continue to keep heading in the same direction (i.e. head fakes). So we can put a fixed stop loss on this, but might kill the profitability on some trades that just need room to maneuver as they're shifting from one direction to another.
So I like the idea of trading two contracts in this scenario. The first and second contract would both enter at the same time - clearly a Blackbird thing. On the first contract, we go for some fixed amount of profit in ticks - easy enough to do in Blackbird as well. On the second contract we want to allow this to trend on the full swing of the MACD cycle, and would be the always-in the-trade (by setting Enter When Flat to False). So one thing that can be done is to use a modified Keltner channel as a circuit breaker of sorts. The point of interest would be the outer bands of the Keltner. For the long trade we could just exit on the bottom band when the contracts (or just one contract, in the case when it had hit the fixed tick amount), and the top band for short trades. This, in effect, would help mitigate the choppy periods - either breaking even or losing less, while allowing the maximum trend moves.
So in the case of exiting on the Keltner top/bottom bands is that best done in Blackbird as well?
Together with this, Blackbird could also setup exclusions around volatile news periods, like Wednesday mornings for CL. I would want to exit all trades just before these times, then using the time sessions, let it continue after that. In my similar post on this in another thread, I'm guessing that would have to be a Bloodhound thing.