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A very powerful fut's strategy
- Thread starter ProfitTakgFool
- Start date
Quote from HolyGrail:
Agreed, so why not double up when you're right, and still take your small losses? And let's forget about the multiple accounts, OK?
That assumes you know ahead of time which trade will be the winner. You don't. If I knew that I would take my full line on the first trade all the time. This is all about probability. Certain setups have a higher probability than others so I go bigger on those ones.
Quote from ProfitTakgFool:
That assumes you know ahead of time which trade will be the winner. You don't. If I knew that I would take my full line on the first trade all the time. This is all about probability. Certain setups have a higher probability than others so I go bigger on those ones.
No, I said double when you KNOW you are right. The trade is doing EXACTLY WHAT YOU HAD HOPED IT WOULD DO. You add to your position as it is going your way.
Quote from HolyGrail:
Very true, hopefully one would limit how deep they would go so there was no way they could get wiped out.
Absolutely agree. I have gotten stung and it will happen again. At some point you have to flip the switch. My platform comes with a circuit breaker. Once I'm down $X I'm liquidated and locked out until the next day. I know this is a high risk strategy but I'm fully aware of the risk, the consequences, and the profit potential.
It doesn't surprise me at all that I'm taking a lot of heat on this topic. It's not mainstream by any stretch but it works well for me. The only thing I really wanted to accomplish tonight is to give someone something to think about if you're open to it. If it's not for you then that's cool.
Quote from nkhoi:
you remind me of AMT4SWA, anyway back to the 2 accounts technique. So the second account is use to satisfy your need to be right and to give you an instant 'pat on the back' so to speak. Psychologically you feel love since you don't have to wait all day until all your loss disappear before you seeing green. I have only 1 screen so it is hard to squeeze in another account. How many screens do you have?
I have 5 screens and I trade the ES, NQ, and ER2. The "instant pat on the back?" It ain't about that, it's about finding an edge. An edge comes in many forms, just find it.
BTW, I can't say enough good things about "Trading in the Zone," by Mark Douglas. Best trading book I ever read.
Quote from HolyGrail:
I really have no problem with the strategy(although I would never use it) as long as your largest potential loss falls within your risk tolerance.
Totally agree HG. Per earlier post, I have a circuit breaker on my platform. When I'm down $X I get liquidated and shut down. I know this is risky stuff.
Quote from HolyGrail:
No, I said double when you KNOW you are right. The trade is doing EXACTLY WHAT YOU HAD HOPED IT WOULD DO. You add to your position as it is going your way.
Ok, gotcha, I do that. I do average up, I don't average down. However, I will "build" a positon, which is averaging, in a sideways area when I sense a move coming but when I do I nibble on the dips, for example, and build my line over time. Again, timing the market is only a small piece of the puzzle for me.
Risk and money management are paramount!
I was pretty hesitant to post this strategy this evening because I knew I'd catch a lot of heat. I'm glad I did because it was a good discussion, even from the bashers.
G'nite all, and may all your trades be good ones, even the DD's.
G'nite all, and may all your trades be good ones, even the DD's.
This is good floor talk, when there was a floor. How do you think locals used to trade, besides filling paper. Find the edge and press it, and know where it lies and get the hell off before you fall.