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coments on david landry trading style
- Thread starter optijose
- Start date
Optijose,
I've read his book and traded his style for about 6 months. It works well when there is a persistent trend, but you get chopped up when there isn't (probably an obvious observation). The key, in my opinion, if you're going to trade his style is to know when to not trade. Don't chase moves and be willing to sit out of a range-bound market. Personally, for me, this was a bit frustrating. Additionally, I wanted a smoother equity curve, so I've since switched to trading the ES on a shorter time frame.
Good luck!
MYDemaray
I've read his book and traded his style for about 6 months. It works well when there is a persistent trend, but you get chopped up when there isn't (probably an obvious observation). The key, in my opinion, if you're going to trade his style is to know when to not trade. Don't chase moves and be willing to sit out of a range-bound market. Personally, for me, this was a bit frustrating. Additionally, I wanted a smoother equity curve, so I've since switched to trading the ES on a shorter time frame.
Good luck!
MYDemaray
Mydemaray,
Well said!
Dave Landry
Well said!
Dave Landry
Dave,
Do you like locking in a piece once the initial risk is covered? Why is that? I have read in Van Tharps book (How to have Financial Freedom through trading) and he says that traders that do this have a strong desire to be right on a trade. I have done some testing on a pullback strategy and it seems that it really does smooth out the drawdowns but you have to be right alot to make money with this exit strategy.
E
Do you like locking in a piece once the initial risk is covered? Why is that? I have read in Van Tharps book (How to have Financial Freedom through trading) and he says that traders that do this have a strong desire to be right on a trade. I have done some testing on a pullback strategy and it seems that it really does smooth out the drawdowns but you have to be right alot to make money with this exit strategy.
E
Quote from shorty_mcshort:
Dave,
Do you like locking in a piece once the initial risk is covered? Why is that? I have read in Van Tharps book (How to have Financial Freedom through trading) and he says that traders that do this have a strong desire to be right on a trade. I have done some testing on a pullback strategy and it seems that it really does smooth out the drawdowns but you have to be right alot to make money with this exit strategy.
E
I do. Yes, I recently had a lenghtly discussion with a fellow trader discussing the psychological side of money management vs. the conceptual.
I belive you have to find something that works both psychologically and conceptually. In other words, something that is conceptually correct that also fits your psyche.
From a psychological standpoint, I like getting the stop to breakeven and taking partial profits when the initial risk is covered. This way, barring overnight gaps, your costs are covered and you have a chance at a "free ride" on the remainder---i.e. a potential for a homerun. psychologically, this is a great place to be.
Yes, this is only a 1 to 1 relationship (on the first loaf). And, on the surface, has the potential to have a negative expectency. However, the real pay off is in the 2x, 3x or ??X (in theory unlimited) profits on the remaining shares (my goal on each swing trade is to turn it into a longer-term trend trade). You can also "beat" the system by taking profits shy of the 1 for 1 in poor market conditions (e.g. when things are reversing)---on the flip side, when things are really moving, you can let the first loaf ride for more than 1x.
If desired, email me and I can I can parse out slides that I have from a presentation/video that covers the discretion involved to help improve performance of this basic money management.
I can also check tradingmarkets archives and convert anything relevant to PDF for you.
Let me know.
Dave
Hey Dave...long time no chat. What's up?
I will say this. I think Dave's book is worth a read for any trader.
Even though I'm not swing trading full time with Dave's style, I have found myself scrolling through charts and seeing irresistable setups. If I can't resist the set-up and the market conditions are just perfect, I'll place a trade and use some of Dave's techniques to manage it. I find that not feeling the need to trade every day, acts as a great filter for mediocre set-ups.
The key to succeeding at Dave's style is the willingness to scroll through lots of charts...and really take advantage of top-down analysis (market-industry-stock).
I will say this. I think Dave's book is worth a read for any trader.
Even though I'm not swing trading full time with Dave's style, I have found myself scrolling through charts and seeing irresistable setups. If I can't resist the set-up and the market conditions are just perfect, I'll place a trade and use some of Dave's techniques to manage it. I find that not feeling the need to trade every day, acts as a great filter for mediocre set-ups.
The key to succeeding at Dave's style is the willingness to scroll through lots of charts...and really take advantage of top-down analysis (market-industry-stock).
Agree Mydemaray.
I have learned the "secret" to trading is learning when not to trade. ALL methodolgies have a "sweet spot". So you have to learn to recognize those times and forget about the rest.
I'm sure you already seen it (if anyone else wants this, I can get you a PDF), but essentially what you are saying is very similar to what I said in short-article I wrote a few years back ("My Most Valuable Trading Lesson").
Dave
I have learned the "secret" to trading is learning when not to trade. ALL methodolgies have a "sweet spot". So you have to learn to recognize those times and forget about the rest.
I'm sure you already seen it (if anyone else wants this, I can get you a PDF), but essentially what you are saying is very similar to what I said in short-article I wrote a few years back ("My Most Valuable Trading Lesson").
Dave
Dave Landry,
One of your former colleagues at TradingMarkets.com has told many people that due to your own trading techniques you went bankrupt during 1999 - 2000 period when others were making a fortune.
Personally I have no idea if this is true or not, and I don't really care. However, you should be aware that many people do believe this guy and this could be affecting your credibility without you even knowing it.
Regards,
Dr. Zhivodka
One of your former colleagues at TradingMarkets.com has told many people that due to your own trading techniques you went bankrupt during 1999 - 2000 period when others were making a fortune.
Personally I have no idea if this is true or not, and I don't really care. However, you should be aware that many people do believe this guy and this could be affecting your credibility without you even knowing it.
Regards,
Dr. Zhivodka
Dave, what's your response to the prior post? Silence lends credence to this rumor.