ES Journal Archive (2006 - 2008)

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6 points targets were hit long ago on this signal from Fri. --That is if you are using the 6 point system which I believe is a reasonabletarget if you are using profit targets o the 15 min chart.
 
Quote from Buy1Sell2:

Many times I am using a mental stop. Having a hard stop or a mental one does not affect leverage, rather that is a function of position size. For example, if I am less than 1 to1 , it is physically impossible to be blown out.

Note: Highly leveraged traders must use hard stops.
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Assuming an account of $500,000 risking 2% ($10,000) on a trade and initiating the trade with 1:1 leverage (11 contracts).

Scenario 1: I buy all at same price and can have an an 18pt stop.
Scenario 2: I can average down at better price levels. With this scenario you can average down and add beyond the initial 11 contracts and still not have violated your 2% risk.

My question is in regards to Scenario 2, where do you stop averaging down? When the 2% risk is reached or the 5:1 leverage is reached?

Many Thanks.
 
Quote from wave:

Assuming an account of $500,000 risking 2% ($10,000) on a trade and initiating the trade with 1:1 leverage (11 contracts).

Scenario 1: I buy all at same price and can have an an 18pt stop.
Scenario 2: I can average down at better price levels. With this scenario you can average down and add beyond the initial 11 contracts and still not have violated your 2% risk.

My question is in regards to Scenario 2, where do you stop averaging down? When the 2% risk is reached or the 5:1 leverage is reached?

Many Thanks.
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7 contracts is 1 to 1. If you were wanting to stay within 1 to 1, you would never average in to more than 7 contracts total.
 
Quote from Buy1Sell2:

7 contracts is 1 to 1. If you were wanting to stay within 1 to 1, you would never average in to more than 7 contracts total.
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okay thanks. Sorry I was using 1200 as calculation price.
 
Quote from wave:

okay thanks. Sorry I was using 1200 as calculation price.
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Stop does not need to necessarily be at 2%. It can be much less than 2% as it is chart/market dependent. 2% is the absolute max.
 
Quote from Buy1Sell2:

Using 1200, 8 contracts would be 1 to 1.
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You are correct, excel was rounding to 1. Thanks.
Next time I'll just use the old calculator.
 
Quote from wave:

You are correct, excel was rounding to 1. Thanks.
Next time I'll just use the old calculator.
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If you are not familiar with excel, little intracacy like that can drive you buggy. As long as it was under 1.5 it was rounding to 1, throwing me and my calculations off. Tx again.
 
I thought I might post my homework page which is my daily market trading plan . I normally have this completed by 08:30 every morning in advance of the market open.

All pivot times are + or - 5 min.

Where time and levels coincide a run ( +, -) or a reversal is in the making.

Current indicators showing a macro program was put on at 10:20 this morning and, as of now, looks as though it should be completed by 14:50 tomorrow.

The market move from 09:50 Thurs. Nov. 9 to 13:40 Fri. Nov. 10 is an illustration of a macro program.

Micro programs fall within macro's and make up the intra day market moves.

Currently short from 1392.00 initial stop at 1393.50. Dynamic trailing stop in place. Will remain short until EOD or until ST and LT MA's cross or if dynamic stop is hit.
 
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