ES Journal Archive (2006 - 2008)

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Quote from romik:



I recall reading one of your posts where you state that scaling out is not an acceptable principle in your trading. So does that mean that you would only close a position once you get a reversal signal? But, what if the reversal signal is different to the signal upon which you normally initiate positions? I think I am improving at spotting divergence based entries, but exits are still hit and miss.
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I prefer to stay in a trade until the reaction high/low is taken out or a bonafide reversal signal presents itself. The reversal signal doesn't have to be anything like the entry signal. Doesn't matter. Scaling out is inferior behavior. When we have a winner, it makes more sense to let it ride. Will that cause us to give back profits sometimes? Yes. However, it will keep you in the really big winners and more than offsets the savings by scaling out.:)
 
Quote from Buy1Sell2:

I prefer to stay in a trade until the reaction high/low is taken out or a bonafide reversal signal presents itself. The reversal signal doesn't have to be anything like the entry signal. Doesn't matter. Scaling out is inferior behavior. When we have a winner, it makes more sense to let it ride. Will that cause us to give back profits sometimes? Yes. However, it will keep you in the really big winners and more than offsets the savings by scaling out.:)
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I guess there is nothing like experience in that case. I must admit that my paper results in the DJ are good IMO, most calls feature scaling out method, but I suppose it's more to do with a lack of confidence/knowledge in longer term type trades, thanks.
 
Quote from m4a1:

if you guys use 24/7 charts then what do you use for open/close time for a daily chart?
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By the way, I meant to get back to you before I don't use Tradestation. Daily chart open/close is as you described earlier and software is set up that way by default.
 
There was a bit more discussion that I wanted to add to the discussion on scaling out being inferior behavior.

--The reason folks scale out is many time due to the fact that they took a larger position than they were comfortable with initially. In effect, they were wildly overextended. The scale out feature simply gets them back to where the total position is now of a more correct size for their account size and comfort level. In summary, they were scared when the original position was on and now have been lucky enough to get some profits and feel they can let the rest run. What happens though when the initial trade goes against? --Sometimes they let the whole trade run as losses mount. -No, it's better to size correctly and let it run to where you can exit at a time of your own choosing (borrowed line from George Bush). No sense being a weak hand.
 
you mean one full day would be 1530 monday to 1515 tuesday?

so the open of the day is actually at 1530? why isn't there anything wrong with this?

what do you use for weekends?

Quote from Buy1Sell2:

By the way, I meant to get back to you before I don't use Tradestation. Daily chart open/close is as you described earlier and software is set up that way by default.
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Quote from m4a1:

you mean one full day would be 1530 monday to 1515 tuesday?

so the open of the day is actually at 1530? why isn't there anything wrong with this?

what do you use for weekends?
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No - for the daily bar, your data provider provides a datum for the open-high-low- etc for the day.

You do not take all of the individual data points and build the daily bar.

Your data provider probably has a different symbol for RTH daily and Globex daily.

JB
 
You guys think this could happen. I mean...everyone thinks we are due for a correction and all don't they.

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Quote from downrivertrader:

Hey guys. I am a newbie. I am hoping to learn how to trade the ES. Look forward to studying your posts everyday.

DRT
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Great to have you aboard! Looking forward to your questions if you have any and hope to be of help!
 
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