Does anyone else Test your trading ideas with Small size?

[Tradex]

I never tried Futures, what's it like compared to chasing wild stocks?

Leverage my friend, leverage, that's the main difference. With Futures and Forex, profits and losses happen at least 10 times faster.

A stock has to move 100% if you want to double your money. With Forex a mere 1% move in your favor will do the trick, that's why I don't mess with stocks anymore.

If you have a good trading system your optimal move is to play the Futures or the Forex market, assuming you also have strict money management rules.

 

[JesseJamesFinn1]

Leverage my friend, leverage, that's the main difference. With Futures and Forex, profits and losses happen at least 10 times faster.

A stock has to move 100% if you want to double your money. With Forex a mere 1% move in your favor will do the trick, that's why I don't mess with stocks anymore.

If you have a good trading system your optimal move is to play the Futures or the Forex market, assuming you also have strict money management rules.

Thank you, and I think I want to put it in my bucket list. Are there futures-forex with training wheels, small. I don't plan on playing Oil, too many pros here to compete with.

 

[systematictrader]

Leverage is in any market
Your talking

Leverage my friend, leverage, that's the main difference. With Futures and Forex, profits and losses happen at least 10 times faster.

A stock has to move 100% if you want to double your money. With Forex a mere 1% move in your favor will do the trick, that's why I don't mess with stocks anymore.

If you have a good trading system your optimal move is to play the Futures or the Forex market, assuming you also have strict money management rules.

about firex n futures having the most but the least options which in itself is a form of
Leverage

 

[systematictrader]

Leverage my friend, leverage, that's the main difference. With Futures and Forex, profits and losses happen at least 10 times faster.

A stock has to move 100% if you want to double your money. With Forex a mere 1% move in your favor will do the trick, that's why I don't mess with stocks anymore.

If you have a good trading system your optimal move is to play the Futures or the Forex market, assuming you also have strict money management rules.

As far as backtesting and everyone do it u seem to forget most traders are discretionary even in their position size it Varys day to day mood to mood

not sure about backtesting 20-30 years either can be relevant to todays results

 

[systematictrader]

Leverage my friend, leverage, that's the main difference. With Futures and Forex, profits and losses happen at least 10 times faster.

A stock has to move 100% if you want to double your money. With Forex a mere 1% move in your favor will do the trick, that's why I don't mess with stocks anymore.

If you have a good trading system your optimal move is to play the Futures or the Forex market, assuming you also have strict money management rules.

Plus
You know why futures and forex have the highest leverage? Because they do NOT move as much as stocks with very few exceptions thus your back at square one that they all try to replicate potentially the same level of gain/loss

 

[Fx-Game]

As you already know, testing begins with the almighty backtest.

If the backtest shows that the system is profitable with 20 or 30 years of historical data, the trader is good to go, assuming the drawdown is reasonable.

On the other hand, if the backtest is negative then "Houston we have a problem", regardless of any profit the trader can make during the "live" testing.

A - backtested - losing system cannot suddenly turn into a winning system, no matter how hard we try.

20 to 30 years backtest?!

Markets are ever changing, what might have worked during the last 5 years, wouldn't have worked 15 years ago.

This is the problem with backtesting and curve fitting.

 

[Turveyd]

Yeah, Sim then $1 per pt then back to $10 NQ/DAX!

$1 puts the greed and fear into the equation without risking too much.

 

[destriero]

Testing trade setups and trade management strategies is useful.

I'm curious, how do you approach live tests in your trades?

With free stock and ETF commissions for USA traders now, its the perfect time to test using small size..

I typically test using just 20 or 30 shares at a time, then scale. Any thoughts?

Yeah, sure, I have some thoughts... this is your gaslighting thread to convince people you’re not a piker. The problem is that you never show the scale into size. It’s always this absurd piker odd lots.

 

[KCalhoun]

Dest sez "The problem is that you never show the scale into size. It’s always this absurd piker odd lots"

I start very small with odd lots to minimize my stop loss costs for trades that don't work.. I understand your point and agree I should be trading larger size. And I agree it would be useful to post more blotters showing examples thx for the nudge. I'm not a piker, but I do have areas I need to improve on, it's good to have the community here to bounce ideas and talk.

 

[Nobert]

I test on SIM and if everything executes as expected, I go full size with real money. This works for my setup as there is virtually no technical difference between my SIM and Live setup and my trade size is small enough as to not impact my ability to get filled.

Hey fan,

which sim do you use for that ?