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Well what matters to me is risk adjusted returns. I looked at Connors method to scale in, and what happens is that he has lots of small winners, then several very large losers (due to correlation since it was an ETF strategy). Because he can have several large losers at the same time and...

I don't average down. Larry Connors likes to do this and it can achieve some very high win rates, but then the winners are smaller relative to the losers. Too risky for me.

My ambitions are simple. To make enough money from trading to live comfortably. While I'm still working my goal is to grow my account to make the first goal easier to achieve.

I wouldn't base your exit for one strategy on another independent strategy. Design each to be the best that you can make them and then see how they perform together. I trade MR and I don't use stops either.

Hi, In 2008 while trading long only dd was at least 20%, but I was pretty much flat for the year. Since then I have been keeping detailed stats on a weekly basis (which is the time frame I have made close to 1%/week) and max dd was 18.5% in early 2009. Added trading on the short side in the...

It's not yet my primary source of income but I have been swing trading for a couple years. I'm averaging close to 1% per week trading long/short with lower downside volatility than the market.

Regarding exits, in some cases they can depend on entries. For example, a mean reversion trade may exit on a return to the mean. A longer term strategy may simply rank various stocks or assets and hold those that are top ranked, exiting those that are no longer top ranked. Well I think...

Wow, that's scary. I'm sure there are plenty of unscrupulous people that would use that to their advantage.

With Android, a revolution in Apps, and a very long term cup and handle formation, it looks to me like a breakout above 630 or so would be buyable. Not that I would take the trade because it is not my style and I will stick with what I know. Maybe the move in January would be considered a...

My strategies with a trending component have a correlation to the market of about 75%. My counter trend are more like 25% to the market and to those with the trending component, so there is still some significant market risk. My short strategies have very low to negative correlation and that...

Rarely, and I've pretty much moved to long/short trading. In a bull market there are opportunities to profit shorting and in a bear market there are opportunities for profit on the long side. I may lean bullish or bearish but I'm always trading both directions. So I don't hedge so much as I...

VXX closed Feb 28 at 30.18, and yesterday at 32.53.

At 20% per strategy or 10% for my overall portfolio I would take a closer look at my performance and the market environment. At this point I might scale back but not to 0. The book Trading Risk by Grant is very good and very relevant to this question.

These are mutually exclusive goals. If you really want to be a better trader you will have to accept that what you have lost is gone and forget about trying to make it back. You have to focus first on learning how to trade and how to protect what you have. Then you can move on to trying to...

I appreciate the well intentioned advice but stops are not the only way to control risk. I've taken more than 1000 RTM trades, including long trades through the fall of 2008 and early 2009, and many thousands more backtested. I am not blindly following Connors or anyone else's advice. Risk...

That's not what CXO says, based on his public record: 1/21/10 “2010 is the year when the bear market in stocks returns in full force. …a meaningful close below [Dow] 10,489 should see a similar collapse to new bear market lows.” 11/25/09 He is now recommending that traders allocate...

Checkout the review of Robert Prechter's market calls here, he has been right only 23% of the time: http://www.cxoadvisory.com/individual-gurus/robert-prechter/ It isn't necessary to predict to trade the markets, it is much easier to work with what is known. "Those who have knowledge...

I keep it simple, I buy weakness and sell strength. Sooner or later a weak stock shows some strength or a strong stock shows some weakness. I control risk by keeping position size small and trading multiple strategies.

By normalizing market prices, do you mean something like detrending the price? For example creating a series that is difference of the price and a moving average? I have heard of the trend adjusted stochastic which I think incorporates this into the indicator. I never covered these topics...

It sounds to me like you were forced out because you were forcing the trade. By 11:20 the price broke the prior day's close and an intra day low, and from there it was a very smooth decline, with only a pause at the opening price. And I am not even a day trader, but of course it is all so much...