ALL In,Out Vs. AVERAGE In,Out

Quote from jack hershey:

--------------------------------------------------------------------------------
Quote from jack hershey:

I'm asked:
More...

Why don't you have a billion dollars?
 
Quote from trader225:

So, you only have 50 million?

lol, you're reading upside down
What is this 5% rule?
annual divest on 501 (c) (3)
What is a foundation?
usually a C corp with IRS rating of 501 series of some sort
More...

Read a little here and there.

Why would people keep money?

Did you notice there are some problems out there?

What is the average commission on a reverse mortgage?

What do you think the average size is?

What if you're getting a jumbo on two houses in a state with a cap? Where do you go to avoid the cap?

What is your margin range of choices?

Is 29,4K a good comish on a 1 mill SPIA?

If a person does 10 in a group, does it take more than 1 1/2 hours?

How many pages were filled in for an app?

Can sigs be faxed?

Are comishes pooled for override %'s?

What is the range of overrides on the gross?

How long it the class for the reverse mortages?

How long is the class for the SPIA?

lol.... read a little take a few classes... hire a few employees.....

What is 350k min annually look like to a new employee? One sale a month?
 
Quote from jack hershey:

--------------------------------------------------------------------------------
Quote from jack hershey:

I like the 720 but I probably would be doing over 1000, though.
--------------------------------------------------------------------------------

I'm asked:

"what do you mean?"

My thoughts on my prior answer:



Its a 6 contract account.

The move was 40 points showing.

The a. 10 points is a miscalc on your part.

So I took the 10 points as the range since I have watched your posting and how you comment on the markets. You can't trade ES and so you quit there you say. But you can do the DAX you say.

So I traded the range over time; for me it was a set of traverses of the range.

I do three traverses of range on average and I can squeeze more out by doing more than one trade per traverse.

So three traverses of 10 points with 6 contracts is 720 and not optimum. By doing an odd number of trades on a traverse (you can only do odd numbers usually) I ran it up to 1000 an addition of four or five points per contract for 6 contracts.

This thread may turn out to be about making money. A. was less than b. and b had a 40 point gain on three contracts. There was a lot of room to fiddle with the numbers. I didn't want to scare anyone with numbers too big.

The example you gave was an unusual one so I did the same. My average of 4 points per contract per trade is probably too high for most traders.

For me it is 39 contract-hours in the market per day. That is a money velocity of 25 points per hour or 1/2 a point per minute or 25 dollars per minute using the 1,000 points.

Look at the market for ES. watch it for a minute and see the bar is more than two ticks tall. Look at each 1 minute bar for the day. There are 390 (405 actually) bars on ES. the volatility distribution is such that there are few 2 tick bars which is all I need to make 25 dollars a minute per contract.

Lets say most people are not in the market 6 1/2 hours a day. That is because they do one of the 80 most popular edges and, in fact they may leave a given market because it is not possible.

BNB was losing a 1,000 a day on 3 contracts he says and shows on prints that look like simulation to me. If not, he finished his trading life today.

How many hours a day is an edge trader in the market. Roughly speaking very few. BNB did two worst trades of 100 contract-minutes and 4 contract-minutes; both lost over 500 dollars. He was losing at the rate of 10 dollars per minute per contract. He won more than he lost measured by trades and he just lost 1,110 dollars net on three contracts. the next day he did the same and wound up with a total account of 547 dollars. He was trading 3 contracts on 1500 dollars total.

The above is an example of how fast someone opposite him was making what he was losing. His 10 dollars a minute loss on half losing trades is comarable to my 25 dollars a minute on optimum trading. A good trader is over twice as good in money velocity of a losing beginner.

i replace edges with being in all of the time. I am also on the right side of the market all of the time. All my measures in my data sets are binary. that is, they are right or wrong no other possibility. I also take enough elements in a set to always have them confirming each other.

All the time I have binary correct data in my sets. All of the time I am making money for two reasons: I am on the right side of the market and the price is moving all of the time. My example is 2 ticks per minute.

Why would I scale in or out. All I do is change sides of the market all day long. When I have a data set that says "change" I obey in spades. When I have a data set that says "hold", I hold. I obey.

You gave a 2 tick a minute example by my looking at it.

Chose any other number of ticks a minute. then add to the 1,000 points or subtract from the 1,000 points the 6 contracts are doing.

Some edge traders get their edges by looking at the markets. they bet on the set up when they see it. The set up has nothing to do with what follows the entry. They use stops in relation to target they try to hit. A percentage of people doing this fail. Another percentage are proving that by doing the same thing over and over they are going to get a different result. I can't rember what this is a definition of. It is either a miracle or insanity.

I do not use setups. I do not do entries or exits. I never bet or use probabilities. I only use binary data which has two answers, one of which I see and the other is not there to see. there are only two conditions and I see one of them present at all times. Nothing I look at have any doubtful aspects about it. I do not scale.

I do better than 2 ticks a minute per contract all day long with quite a few contracts.

720 is a low optimum and 1,000 is better and it is 2 ticks a minute money velocity. All two tick one minute bars in a row as the basis. See the bars stepping along. If they are taller than two ticks they can overlap as much as they want except for 2 ticks. Tall ones, short ones all in a money making path.
More...

wow, long post!

10 points as in A) was an example which might be an average optimal exit for a trader that doesn't scale out, a trader that does though can extend optimal exit to 20, 30, 40, etc points. And let's not exclude win/loss ratio. As we all have different stats, it would be very difficult to compare 2 methods as optimal targets might be different, win/loss might be different.

I couldn't manage ES, because it doesn't have enough momentum and range expansion, DAX on the other hand delivers both on most days.
 
+107 pts DAX today scalping 1 & 2 min chart trading 3 contracts scaling out. It's equivalent to 71 ES pts $ value, I was never previously able to achieve that trading ES scalping and not scaling out.
 
Quote from trader225:

So, you only have 50 million?
What is this 5% rule?
What is a foundation?
More...

The only foundation that guy created was the one he hand poured!!! lol. probably broom finish.
 
Trading is very personal, first and foremost.

With that said, I believe most traders blow their accounts by taking large stops and selling at minuscule targets. Naturally a recipe for disaster and possibly the reason why most fail at this.

Scaling out is ok if your first target is greater than your stop or if your accuracy rate is real high and you trail your stop accordingly. Now, the fact that you can take a full stop on a full car size is not very appealing to me since risk management and capital preservation is imperative in trading.

Averaging up is the way to go but hard to do so from a psychological perspective.

Trading should be about minimal losses and winners that range from small to large. Averaging up promotes this, but the fact that the losing rate is high and many times winners become losers makes it extremely hard for traders to follow this money management strategy. In my opinion, it's the way of the pros.

Only add to winning positions.

ie Pullbacks on a strong uptrend, time to buy(add), unless the major trend changed of course

Only sell your positions (all) when the trend has ended. Remember the old saying....."the trend is your friend until it ends...."

Again, the fact that the market trends 20% of the time, and chops the other 80% constitutes high amount of losses, albeit small, but nevertheless the money management strategy is a winner if you have a good sense of price action and chart geometrics.

Key here is catching the birth of a trend, or as some call it, the BOAT, and not following the crowd when the party is almost over.

As far as mind tricks . I don't know about you, but small losses never bother me :)..and they should not, part of trading, inevitable.

As far as "winning" trades becoming small losses or break even trades, if you trade for good targets then it was never a winner in the first place, according to your plan. And as you probably know or should know, plan your trade, and trade your plan.....

Good trading.

Anek
 
I say let people blow the load in one shot.. more money and liquidity from the ego driven to be forced out for the rest of the ego-less self-aware.
 
Quote from JSSPMK:

In the end of the day the only thing that matters is what method makes you money. I personally do not care whether it is more profitable not to scale out, I only care for what I CAN actually make, not theoretically, but practically.
More...

Exactly. I have heard this called trading around a core position. Pulling some off when you think the market is overbought, adding when undersold, while maintaining a directional bias as warranted. If we KNEW what was coming next, then yes, everything would be all in or out; of course, this is not the case where I trade. A product that is steady and does not reverse at a moment's notice might work this way, but in more volatile environs it is prudent to bank some when it's there, not allowing for the profit to make a loss, as you mention. I'm with you.
 
You must log in or register to reply here.
Back
Top