this is insanity? maybe back in 90's 
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ES Journal - 2015
- Thread starter Buy1Sell2
- Start date
You made average 4-5 points ES per day recently, that is pretty good.
Not sure I understood you correctly here, with an average risk being at 2.3 ES points the reward has to be at least x3 that, basically 7 points, so taking profit once 4 or 5 has been reached doesn't cut it IMO.
Even if on any given trade your stop happens to be 1.5 points reward still has to be at least x3 of an average risk and not the current one.
In an overall uptrend (weekly/monthly charts) buying oversold conditions on daily/4 hour charts increases likelihood of grabbing an upside reversal at the beginning of an oscillation (higher potential reward).
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Not sure I understood you correctly here, with an average risk being at 2.3 ES points the reward has to be at least x3 that, basically 7 points, so taking profit once 4 or 5 has been reached doesn't cut it IMO.
What I meant was you accumulated 35 points (profits minus loss) over a period of about 8 days, so your average NET daily profit (recently) was 4-5 points. Of course if you just count the winning trades, you average would be about 12 points. According to some statistics, if one can make even 2 points per day consistently, one can accumulate a huge wealth eventually if compounding it.
What I meant was you accumulated 35 points (profits minus loss) over a period of about 8 days, so your average NET daily profit (recently) was 4-5 points. Of course if you just count the winning trades, you average would be about 12 points. According to some statistics, if one can make even 2 points per day consistently, one can accumulate a huge wealth eventually if compounding it.
As nothing is guaranteed, risk controls have to remain number one priority, so I don't really agree on this point. Steady growth is what this is all about, otherwise you would be on route to join 95% of losing traders or whatever the stats are.
As nothing is guaranteed, risk controls have to remain number one priority, so I don't really agree on this point. Steady growth is what this is all about, otherwise you would be on route to join 95% of losing traders or whatever the stats are.
Consistency is the key, as I see it. Of course risk control is quite important and you showed you stick to it quite well.
hey he caught the right side of a squeeze, that 35 is an outlier?What I meant was you accumulated 35 points (profits minus loss) over a period of about 8 days, so your average NET daily profit (recently) was 4-5 points. Of course if you just count the winning trades, you average would be about 12 points. According to some statistics, if one can make even 2 points per day consistently, one can accumulate a huge wealth eventually if compounding it.
thats not business as usual,got to throw that out
Consistency is the key, as I understand that.
Sort of. Keeping average reward at least x3 average risk is the consistency factor, not so much the win rate. You don't really need to worry about compounding, as if one can generate on average 4 points per trading day risking 0.5% of capital per trade (average of 2.3 points) over the course of 250 trading days, then that would equate to growth of over 200% per annum.
hey he caught the right side of a squeeze, that 35 is an outlier?
thats not business as usual,got to throw that out
You mean the single trade that yielded 34.5 pints? throwing that out he would be in a losing position considering the commissions. But you got to give him credit for letting that winner run far and long.
hey he caught the right side of a squeeze, that 35 is an outlier?
thats not business as usual,got to throw that out
Let's be fair here, catching those types of moves IS the objective. As I said previously, if I was to lock profits after 7 points have been reached, then that would result in a higher win rate (as there would be fewer losses) and the final result would not be that far of where it stands currently. There have been numerous occasions when I reached +7, but didn't close as was expecting continuation. Now I will be stricter with profit taking and will trail anything above +7.