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Now lets add some items to the programmed trading solution Many traders use a Chandelier Stop (CS) or trailing stop that is based on the volatility of the market. It has been successfully used and recommended by a number of traders, including Chuck LeBeau, for trend-following systems. The...

Now let us discuss some other trade management scenarios. This one will be a programmed trading solution. One of the toughest problems in overcome in trade management is what I call the PRICE BAR TRAP. A good example of this happened to me a few years back at a conference. I was talking with...

Let us start with some simple examples. The first object of the trader is set up is a basic business model. This will answer what kind of risks you are willing to take on with your edge. These kinds of models start out simple and grow. Let’s start with some simple rules: 1. You set a max...

When you test an edge or strategy it will show you where they risks are. Do you know how to identify them? That is the lost important part. By the time you live trade the position size is for the most part determined. Only if risks show up in live trading that were not found in testing only then...

How many times do I have to say it.. With my method: There is no formula for position size. There is no formula for position size. There is no formula for position size. There is no formula for position size. What you have to do as trader is dig the correct position sizing out of your...

I’m not an academic like I was in my youth. I have a trading business to run. Statements like “Most say "don't risk MORE than 2% of your capital on any one trade” tells me and you nothing about how to build real trade management. I need to arrive at a real number in trading my edge that...

I could care less what is in print or if some author “may” have had presented “my” alternative in literature. If you read what I wrote that is not my point. What is in print today are theories and nothing more. Most of these authors, in the past, have never presented one real trading...

I tried to make Kelly math work for me about 8 years ago, I think, but it failed with trading my automated strategy that uses reversals. At the time I thought Kelly math would be excellent method for position sizing. If you can find a way to make Kelly’s math work in your actual business model...

Thank you. This is a book I have not read. I will have to get one.

It is now no wonder we learn so little on ET’s forums. I am always amazed at how little leverage we give an idea on these forums. But, apparently for some traders there is no room for alternatives. I ask a hypothetical question to be debated. I show a method I not only researched and built...

Yes, Vince Ralph was a giant way ahead of his time in the early 1990s. He had some interesting empirical techniques, especially in the area of fixed fractional trading and time spent in drawdown. I like his ideas very much. However, some the areas he never got around to are: - How do you build...

Thank you. I agree with you completely.

I will think about your comments this summer at my lake cottage while I relax in retirement (from the profits of using this method). In fact I will probably burn a few of those books you recommend in my campfire. At least they will serve some good purpose.

Thank you for your question Charlton. Please give me a second to answer your question. In most authors books position sizing is computed first and then drives the author’s strategy in live trading. There is no thought given by the author whether the money management rules created by the...

Thanks you all for your remarks. I hear you. Give me time to build up to how this works. Lets start with what we all see every day. The text below was stripped off a web site. It does not matter which one. But this calculation is plastered all over the web and in book after book...

Thanks for your comments. This was part of applying a lifetime’s work to my passion for trading. It is a different approach to trade management that is well grounded in business practices. When I kept hearing others have the same problems with trading management I used to have. I said it’s...

The period of performance measurement means how many trades (could be a range or specific number) are in your trade review. Here is an example: A Simple business model for an automated Swing Trading system. 1. Performance reviews are conducted after every 6 trades. 2. Trade Performance...

Trade planning and Trade Management are connected at the hip. Yet there is little I could find in print about how to affectively connect these two areas together (it killed 2 trading accounts for me). So I dug up my courses on business models and IBM transaction management and put them together...

As many of you know from my prior posts in Trade Planning and Trade Management it a subject that I have thought and wrote about almost as much as automated trading. What I discovered through my personal investigation of Trade Planning and Trade Management by reading books and magazines over the...

I thank all of you for your kind words. Tommorrow will be the start of the thread.