AHG - Profitable Strategy for Struggling Traders
- Thread starter Anekdoten
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Here we go. Just looking at the trades they come off as questionable to me. ES seemed tougher to trade last two days than it was the three days before. Seems like the setups aren't as quality, and that I'm looking for HH/HL - LH/LL waves to connect before getting pullbacks. Instead trends are just reversing and making their big moves in first squirt then often fading. Been wondering if my stops are too big/small too. Doesn't seem like I'll allow full stops to get much bigger than 2-3 full points Anyway, feed me the crow Anek!!
~Cx
Ok a couple things then:
1) You only take DT's in downtrends and DB's in uptrends? (or
were you referring strictly to the aggressive entries?)
2) Your last "No short?" box in the upper right... the
Risk / Reward seems a bit tight on that trade too like you
mentioned on one of my earlier trades. Am I not seeing
something right there?
3) Still curious what you thought about my stops statement. I
realize I must avoid big losses, and entering on trend
pullbacks seem to be where i have my more full stops. Been
placing them above / below the pullback i enter on (see as
logical spot), yet 2-3full points doesn't seem like alot in the
scheme of things. What do you think?
Thanks for the analysis. Every chart you mark up helps alot. No exagg.
~Cx
1) I only the take miniscule stop types when the DT or DB is inline or with the major trend, otherwise I wait for the middle swing to be taken by a closing bar. You should know this by now
2) Mine is a double top WITH the trend.
3) My stops are usually based on momentum and lows of previous bars, it varies from play to play. Needless to say if the play requires a big stop I will prob skip the play. If stop is bigger than usual, trail manually as needed to preserve capital, always based on price action. Remember the best plays usually work from the start.
Anek
"......If there is one thing consistent in the stories of how good traders turned themselves around from being bad traders, it is their attitude about losses. Professional traders accept that losses are part of the game. Since the markets are mostly random, the best trading methods will always have numerous losses. Professionals do not equate losses with being wrong.
It is precisely because correct trading methods invariably generate many losses that it is important to keep the individual losses small in relation to the overall size of the account. In order to keep trading, you must preserve your capital. IF YOU CAN KEEP TRADING IN THE DIRECTION OF THE TREND, THE BIG PROFITS WILL COME. However, if you take too many large losses, your capital will be wiped out before you can enjoy the big profitable trades.
The laws of probability INSURE that regardless of your approach, you will inevitably suffer some long strings of consecutive losses. If you are risking too high a percentage of your account on each trade, before long one of these unavoidable losing streaks will blow you away. Keeping losses to about one percent of your account size is optimal. With smaller accounts, the percentage will have to be larger. Five percent on one trade is probably the highest prudent level of risk." - Bruce Babcock
If you are struggling, you probably need to make these words your daily mantra...
It is precisely because correct trading methods invariably generate many losses that it is important to keep the individual losses small in relation to the overall size of the account. In order to keep trading, you must preserve your capital. IF YOU CAN KEEP TRADING IN THE DIRECTION OF THE TREND, THE BIG PROFITS WILL COME. However, if you take too many large losses, your capital will be wiped out before you can enjoy the big profitable trades.
The laws of probability INSURE that regardless of your approach, you will inevitably suffer some long strings of consecutive losses. If you are risking too high a percentage of your account on each trade, before long one of these unavoidable losing streaks will blow you away. Keeping losses to about one percent of your account size is optimal. With smaller accounts, the percentage will have to be larger. Five percent on one trade is probably the highest prudent level of risk." - Bruce Babcock
If you are struggling, you probably need to make these words your daily mantra...
Quote from Anekdoten:
1) I only the take miniscule stop types when the DT or DB is inline or with the major trend, otherwise I wait for the middle swing to be taken by a closing bar. You should know this by now
2) Mine is a double top WITH the trend.
3) My stops are usually based on momentum and lows of previous bars, it varies from play to play. Needless to say if the play requires a big stop I will prob skip the play. If stop is bigger than usual, trail manually as needed to preserve capital, always based on price action. Remember the best plays usually work from the start.
Anek
Ok my bad, I do keep reading back through the entire thread weekly but I must have missed the statement about only taking those aggressive DTs & DBs in direction of trend. Or maybe that was just implied in your charts. Not sure what the "Mine is a double top WITH the trend" was referenced towards. Was that referring to my question about your last "No short?" ?? If it was ya i totally agree with the DT with the trend, referring more to the Risk / Reward aspect as it seemed tight.
Anyway thanks, thanks, and thanks!!! Might seem like I ask alot more than some of these other guys, but as I've said before, it's simply because I see the value in your wisdom & experience (this is rare, believe me you). Will keep chugging until it becomes like clockwork.
~Cx
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