Could this SIMPLE thing improve the odds of making money?

[newguyintown]

Quote from Swan Noir:

I'm not suggesting money management is not an important part of the equation but even perfect money management has no value unless you are trading setups that have a positive expectation. Part of having that positive expectation is using the appropriate stops for the setup, trade location, vol etc. Stops go hand in hand with the trade while money management is what profitable traders use to stay in the game when those same setups hit the invariable streak against them.

Completely agree, and I'm well aware of this. The point that I was trying to make is not whether such a platform would make someone a winning trader. They would need a positive expectancy method to begin with to make money. But what I was saying is that it should improve the odds of making money. Or at least allow traders to have a smaller chance of blowing up while learning. To keep them in the game longer while they gain the skills to have a lasting trading edge. To that end, I think such a platform could make a lot of sense for undisciplined newbies and struggling traders.

 

[Rationalize]

Quote from newguyintown:

Completely agree, and I'm well aware of this. The point that I was trying to make is not whether such a platform would make someone a winning trader. They would need a positive expectancy method to begin with to make money. But what I was saying is that it should improve the odds of making money. Or at least allow traders to have a smaller chance of blowing up while learning. To keep them in the game longer while they gain the skills to have a lasting trading edge. To that end, I think such a platform could make a lot of sense for undisciplined newbies and struggling traders.

It's likely to slow down their path to ruin.

But, isn't this what paper trading accounts are for?

 

[riffrafffpatrol]

Quote from 1a2b3cppp:

False. Casinos set a maximum bet limit at the roulette table, effectively having control over the size of bet placed.

This prevents people from being able to martingale indefinitely (assuming a large enough bankroll) and combined with the 0 and possibly 00 spaces gives the casino favorable odds over time.

Without controlling the maximum bet the casino would give up its advantage to a player with a very large account size.

Random uncertainty exists in every trade... likewise in casinos random uncertainty exists in every bet in every game.... a huge loss can be incurred at any given time on an isolated bet... however statistically over a large sample size they know they will always come out ahead...why? Because they have an edge... rules that put the probabilities in their favor.

 

[Handle123]

Based on my own trading for several years, and all the books and research I've read out there, it seems to me that the two biggest reasons for trading losses (and ultimately failure) are incorrect position sizing and not keeping stops properly. All the other "sexier" things like entry set-ups and market timing get the attention, but the reality is that if traders kept proper stops and sized their positions properly (i.e. proper money management), their odds of making money would be much higher. The problem is that most traders don't have the discipline to do these two basic things right.

So here is my question. Why isn't there a trading platform out there that does this for traders by default. i.e. instead of giving traders the most features and flexibility possible, TAKE AWAY features and flexibility when it comes to stops and position sizing. Make the trading platform very simple and inflexible in this one aspect. Simply give traders 3 options (low, medium, and high risk/reward) and then have the platform size their positions automatically based on an algorithm that looks at their account size and how far away their stop is for any trade, and sizes the positions appropriately with very low risk of ruin possible (even in the higher risk option). Also, make the platform not allow you to trade without a stop loss, and if you widen that stop loss during a trade the platform auto-liquidates part of the position to keep your risk constant. So this platform would take care of stops at all time by default, and also not even give you the option to deviate from a sound position sizing strategy.

Of course such a platform wouldn't be for profitable traders and pros, who would want more flexibility. But for all the newbies and struggling traders out there that continually sabotage themselves, wouldn't such a trading platform improve their odds? Just a thought...

Let me know what you guys think. I wonder if any newbies or struggling traders would even appreciate such a platform and trade through it, or would they insist of having all the "freedom" that ends up hurting them.

So trading futures and only doing a one lot, how do you reduce this?
As far as stop placement, that has to do with either being a scalper, day trader or swing trader, each has different stops. As far as risk, I can't tell low from high as all have that 50/50 attached to them, although most don't know how to change the 50/50 and really this takes years of testing.

Too many test for profitable trading, as your experience kicks in, one might want to try other side of lowest losing percentages and what you have to do to get much much lower.

Ninjatrader does have ATM in their Dom which will allow for set entries, different stops used and even volume stops, actually most I had developed several years previous, best to make your own so YOU can have what you want.

Let's face it though, 2 items you mention, a beginning trader going to lose period if they did not take a few years first to study swings and price action, and best one starts with buy low and keep as long as you can. Buying low makes risk less and keeping as long as possible gives you ROR.

 

[Overnight]

So trading futures and only doing a one lot, how do you reduce this?

And Handle wins the "oldest-thread-bump-of-the-month" award!

Here, take your stale cookie.

 

[Handle123]

And Handle wins the "oldest-thread-bump-of-the-month" award!

Here, take your stale cookie.

Want parking space too....

 

[Overnight]

Want parking space too....

Your space is right next to these two...

 

[Handle123]

Your space is right next to these two...

Guess am going to have to get the Tractor out of the barn and park it behind part of yellow car in 2nd space then go to Italy.