Do You Have A Trading Plan, and Do You Know It Inside and Out?

[RAMOUTAR]

Quote from SethArb:

I had a trading plan that I used to make 1200 % on my

small trading acocunt in 2000

but the opp. for arb I found then has mostly disappeared

it has truely been a struggle for me to find some

other method that works for me

and that keeps me disicplined.

the 1200 % return was made with a approx 95 % weekly

win rate and my only bad weeks that yr were do to errors
and broken trades

Setharb,

That sounds like one hell of a track record. Unfortunately, as you know many of the strategies were dramatically affected post 3/01. The size of the account is really irrelevant, what is relevant is the money & risk management of the account.

The strategy won't keep you disciplined, but your comfort level with the strategy will help you relax. I find it hard to believe that the entire strategy has lost it's effectiveness. If I were you, I would thoroughly review the entire strategy, and determine which of its components are still applicable. I went through the same challenges many times over the years. Whether its market dynamics or regulation change, my strategies were affected. One of my priorities is to get my arms around these changes ASAP, and tweak my strategies so I'm not compromised by the changes. Like evolution, today's species have managed to adapt to their changing environment. Don't be so quick to throw out the baby with the bathwater.

 

[trend456]

I have a plan but i don't have any. The plan comes when I see it coming. I just react to what the market tells me and do not create one without it. I do have a plan for my mechanical systems but thats a different story.

Good trade

trend

 

[trend456]

Quote from RAMOUTAR:



Setharb,

That sounds like one hell of a track record. Unfortunately, as you know many of the strategies were dramatically affected post 3/01. The size of the account is really irrelevant, what is relevant is the money & risk management of the account.

The strategy won't keep you disciplined, but your comfort level with the strategy will help you relax. I find it hard to believe that the entire strategy has lost it's effectiveness. If I were you, I would thoroughly review the entire strategy, and determine which of its components are still applicable. I went through the same challenges many times over the years. Whether its market dynamics or regulation change, my strategies were affected. One of my priorities is to get my arms around these changes ASAP, and tweak my strategies so I'm not compromised by the changes. Like evolution, today's species have managed to adapt to their changing environment. Don't be so quick to throw out the baby with the bathwater.

I understand what u're saying but adapting is always not the best way to prevent it. It is sometimes clever to quit. It is similar to optimizing systems when unprofitable. It doesn't work out in the long run.

And... the size of the account is also an important part of money management and some strategies still work after 3/01 and some don't. It depends on what kind of strategy u create. When it doesn't work u have to quit and move forward. You have to dump your system like u dump your girlfriend.

Good Luck.

trend

 

[murray t turtle]

Quote from RAMOUTAR:

I've received many PMs from my fellow ETrs, and I have learned that many of you don't have a "plan" or don't know your plan inside and out. One of the first steps in becoming a successful trader, is being honest with yourself.

As my schedule loosens up here, I will make a "Personal Trading Plan" worksheet available to all of you, and perhaps follow up with a "chat" here on ET. Answer honestly.

================================

Honest answer is yes.

It includes blue, red, black ink on white paper & charts.

 

[ttrader]

Quote from damir00:



yes, i have a plan, more than one, actually, and i do know it absolutely inside out. and yes, part of the plan accounts for the fact that so many traders are planless.

... or, maybe the other way around ?


ttrader

 

[ttrader]

Quote from RAMOUTAR:



Fading the crowd, I love it!

Doesn't this contradict the poll result(66/33) ? The crowd (66) HAS a plan ... at least it says so ... i guess this is typical case of superiposition ... so many traders with NO plan mix together on the stock market and then a 'PLAN' is generated ...


ttrader

 

[damir00]

i don't see it that way. plans come in many flavors: what i'm "fading" is the aggregate of all plans and non-plans.

Quote from ttrader:



Doesn't this contradict the poll result(66/33) ? The crowd (66) HAS a plan ... at least it says so ... i guess this is typical case of superiposition ... so many traders with NO plan mix together on the stock market and then a 'PLAN' is generated ...


ttrader

:

 

[RAMOUTAR]

Quote from trend456:



I understand what u're saying but adapting is always not the best way to prevent it. It is sometimes clever to quit. It is similar to optimizing systems when unprofitable. It doesn't work out in the long run.

Setharb was not specific about the strategy he employed, in most cases its correct to start from scratch.

Quote from trend456:


And... the size of the account is also an important part of money management and some strategies still work after 3/01 and some don't. It depends on what kind of strategy u create. When it doesn't work u have to quit and move forward. You have to dump your system like u dump your girlfriend.

Good Luck.

trend

The money & risk management component and strategy are proportionate to the size of the account. You can build up any size account, as long as the preceding 2 components are compatible.

The risk reward factors for girlfriends are much easier than wives. Fortunately, I married my best friend.

Thanks for the exchange, be well.