Search results

It was inevitable since I started to trade publicly anyway and ET thread is just another step to more transparency. Yes it's a challenge but only way to really improve is overcome it and move ahead. :)

Three trades today.

Many successful TA traders use extremely simple trade management. Sometimes as simple as 1:1 R:R, win or loss. If it wasn't entry, how could those approaches with 1:1 R:R work and more so, overcome commissions and slippage?

Just the opposite. Every serious TA trader runs extremely thorough stats on every nuance of the approach and general price action.

Do you realize that ideally exiting on price is the same as entering on price? :)

If it's so easy why haven't you made a fortune trading with prudent money management only yet?

Very simple: again it's just odds. Do we ever enter a trade which unlikely has the potential worth the risk? Of course we don't. Do we have a guaranteed profit on each or most of trades? No we don't. But if our statistical information says entry A taken on maximum risk B provides move of...

Oh, we need clarification of one point here: it's still the entry which gives higher or lower odds of not just the fact of the move, but also provides odds on likely magnitude of a move. Cause we obviously don't need entries with the most likely outcome of one tick move and rarely more...

While I am pretty sure there are many traders having better win rate than 41% I demonstrated so far (which by the way includes break-even trades too, where a loss was less than 1 tick, just commission) the most important point in regard to this matter is: only persons with self-esteem and...

Surf, ask your PhD wife if a bet with 40% chance of winning and 1:2 risk:reward contains an edge. That would make things clear. :) Don't know about you, but I LOVE to take as many trades as I can which have chance of winning of 40% with risk:reward of at least 1:2. It's equal to having a...

In our culture being "wrong" associates with negativity. That's why it is so hard for most to accept the reality of an odds game. ET has plenty of excellent examples of how people pay too much attention to single calls/trades and absolutely not enough attention to their risk profile and...

Yea, those people like Soros on top are on top because they're very smart. :)

If money management was the only cause of winning, then trading would be insanely simple: just continuously enter immediately after each exit or simply reverse to remain always in. Frequency of trades would be great and overall profit as well. Sounds like something impossible, too good to be...

Surf, my stats say the following money management rules would produce overall profit with my entries: 10 tick stop-loss and 12 tick take-profit in NQ for day trading. Now if your theory of random entries is correct, same money management should work, right? Why not test it and see if it...

That's interesting phenomenon, cause now as you are profitable you are confident about your automated system, right? Would you be as confident trading it manually? Exactly the same rules I mean, just manual execution.

Surf, you should take a basic course in theory of probabilities. :D Edge is not necessarily high odds of something happening. It's all about the balance of risk/reward. I already quoted Soros on the matter, but will repeat since I love this quote by him, it's a great demonstration of true...

Tell you one thing: in the game of probability you better believe in your strategy/tactics indeed. Otherwise it becomes almost impossible to stay disciplined in doing what should be done. That's what happens to many traders: they don't have a method developed and tested well enough, but start...

Accuracy may be high or low (my live experiment so far shows 41% win rate approximately as can be read in the journal). It doesn't matter. What only matters in this business is profit relative to the risk taken. Losers care about the win rate too much, cause it's a matter of being right or...

Very good points, Jem. That's exactly what I meant to say too. There are many inputs in every trading decision. Outsiders only see a tip of an iceberg like "resistance breakout", when in reality it's resistance breakout which is only legit when a dozen of other factors is in place. They are...

Yes, I would say much more conservative than used to be, cause I part intentionally and part subliminally wanted to show nice and smooth equity curve. Felt like back in trading school and now after almost three months feel like getting back to normal stress levels. English is not my native...