Your falling for his silly shit. This guy is playing the same game in the thread below and another thread.
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Could really use some advice please
- Thread starter Ansare
- Start date
Your falling for his silly shit. This guy is playing the same game in the thread below and another thread.
I'm sorry but I disagree. I do not like glittering generalities in trading they are a distraction. Your statement:Quote from fearless9:
I do not know whether the next comment is of use to you or not.
If not then just dump it.
'Only display and pay attention to that information which enables you to enter, manage and exit your immediate trade'.
Anything more than this is a distraction.
regards
f9
âOnly display and pay attention to that information which enables you to enter, manage and exit your immediate tradeâ
does not tell me how to trade. Try running any business in this world much less trading and see how far you get with one-liners.
I trade some longer positions. When my automated system went short apple from August 19 2008 until October 13, 2008 in Tradestation that dam open profit P/L was in my face every day. It would drive any one crazy and not just me. Percentages kept me in that trade until the end. If I had used the dollars in my performance reviews I would have taken the money and ran.
Regards
RabbitOne
Quote from Cutten:
My advice is simple - turn off your P&L.
I learned this a long time ago and this is some seriously good advice. Watching P&L does not in any way help you make money. Trading your plan ALL day, without profit goals is the way to go. You've got to hit those HUGE days, otherwise your going to cut your profit way too short.
Quote from Ansare:
Also, a 90% chance of one losing month with a 50% drawdown and a 50/50 chance of 30% or more each month? Statistics was never a strong suit, but I'd have to be the biggest trading moron on the planet to hit those lows. I am really interested in how you came up with the numbers and sincerely appreciate your time.
He most likely is referring to your position sizing which is too large. Keep it simple and stick to 2%.
As I said ...Quote from Rabbitone:
I'm sorry but I disagree. I do not like glittering generalities in trading they are a distraction. Your statement:
âOnly display and pay attention to that information which enables you to enter, manage and exit your immediate tradeâ
does not tell me how to trade. Try running any business in this world much less trading and see how far you get with one-liners.
I trade some longer positions. When my automated system went short apple from August 19 2008 until October 13, 2008 in Tradestation that dam open profit P/L was in my face every day. It would drive any one crazy and not just me. Percentages kept me in that trade until the end. If I had used the dollars in my performance reviews I would have taken the money and ran.
Regards
RabbitOne
'I do not know whether the next comment is of use to you or not.
If not then just dump it.'
regards
f9
nysestocks
Guest
Quote from Ansare:
Would you mind explaining the numbers a bit? Trying to figure how earning roughly 1% per week equates to "should be netting more than 175% per-month..."
Also, a 90% chance of one losing month with a 50% drawdown and a 50/50 chance of 30% or more each month? Statistics was never a strong suit, but I'd have to be the biggest trading moron on the planet to hit those lows. I am really interested in how you came up with the numbers and sincerely appreciate your time.
I just ran the numbers through a trade simulator. At 5% of portfolio risked per-trade and the win/loss stats given, the numbers are correct. To achieve only 1% return per-week given 16+ trades per-week and the win/loss stats, you'd be trading much smaller size (certainly less than .5% per-trade which is a factor of 10 smaller than you posted).
Simple math ex.
Account size 100,000
5% = 5,000
8 losers at 5,000 each = -40,000
8 winners at 10,000 each = 80,000
net gain 40,000 with no mmgt or 40% per-week
How could you only net 1% per-week given the numbers you posted?
Quote from acrary:
I just ran the numbers through a trade simulator. At 5% of portfolio risked per-trade and the win/loss stats given, the numbers are correct. To achieve only 1% return per-week given 16+ trades per-week and the win/loss stats, you'd be trading much smaller size (certainly less than .5% per-trade which is a factor of 10 smaller than you posted).
Simple math ex.
Account size 100,000
5% = 5,000
8 losers at 5,000 each = -40,000
8 winners at 10,000 each = 80,000
net gain 40,000 with no mmgt or 40% per-week
How could you only net 1% per-week given the numbers you posted?
OK, fair. Except my stats have been kept from when I started with 1% of account size and worked my way up slowly. Should have explained that and didn't.
What I don't understand, though, is where do you come up with 5k per loss and 10k per win. Just because each trade is 5% of account size, how do you assume those numbers per loss or win? 100,000 acct I'm talking making 1k a week.
Apologies if I'm missing something obvious here. Is so, it's winging over my head.
In the meantime, I have gone through much of Trading in the Zone. Great book and raised a lot of relevant (and familiar) points.
Also, the more I thought about my question the more I realized that without knowing people's personal situation, there IS no "right" answer. Too many variable for there to be just one right way.
I do agree I have to stay in the game longer or risk greatly reducing potential gains.