L 4125
ES Journal - 2021/2022
- Thread starter Buy1Sell2
- Start date
out here +15
+12, +13, +15 today. 40 points
Takes the sting out of the existing longs i'm holding from yesterday.
Keep doing that and depending on market action going forward decide whether to eat some losses from higher up or keep holding and 'playing' like today
Takes the sting out of the existing longs i'm holding from yesterday.
Keep doing that and depending on market action going forward decide whether to eat some losses from higher up or keep holding and 'playing' like today
Nice! If you don't mind me asking, what's your capital allocation per contract? I assume it's ES.
micros. Max 20 or so. Typically 2-4 at a time maybe. Not an exact science. Loosely based on Mr. Yen/Brian Watt and how he trades (although he's a multi-millionnaire who trades micros lol)
FIFO = first in / first out.
Surely your purchases from yesterday were offset by your sales today - unless you're trading multiple accounts?
Meaning you're not effectively still holding the longs from 4220/4205, but you lowered your average price assuming you still have open positions.
What was purchased at 4220 is gone. He is probably tracking it hypothetically so effectively it averages out. But 20 MES is only 2 ES. He probably can ride the drawdowns. However risky it may be, delaying bail out has worked well in covid mkt. I also switch to micros whenever needed but I hold both ES and MES. Doing this on year end causes headache.
Pretty soon we will enter the stage where this "ride as long as you can" tactic may be counter productive, although shamelessly I admit I do that too.
Pretty soon we will enter the stage where this "ride as long as you can" tactic may be counter productive, although shamelessly I admit I do that too.
of course. I'm just writing it in a way so that it's easier to track for me and others (since it can get confusing when you are constantly adding and closing). I believe mrYen does the same thing. Just makes more sense when trading this way.
Plus I know there's people tracking our points made or lost as I saw was the case with the guy who started this thread . Making it easier for them lol
edit: yes. What giriga said
Got it. Just wanted to clarify that as you seemed to imply that you were actually holding longs from 4220 still.
I wouldn't worry too much about that. To be honest - as soon as people start trading multiple lots it gets confusing quickly. There was a guy here a few years back who pretty much was the main poster for a while. Ammo. He would always be averaging down, too, but usually he was shorting. I always found it hard to keep track of his actual position.
Anyone know what happened to Ammo?
That's the thing. While he didn't say it explicitly, Rickshaw Man probably blew his account during last year's covid plunge averaging down on falling prices.
If position size is static a bull will get fat on profits and can easily handle some drawdown. But this method doesn't scale particularly well as scaling up your positions pretty much guarantee that you will at one point have a deadly blow or even liquidation to your account with this 'method'. Gain 500 points on one contract. Lose it all on a 100 point drop on 5 contracts. Etc.