ES Journal Archive (2006 - 2008)
- Thread starter Buy1Sell2
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That begs the question, does his system consistently show that he is choosing key reversal points, so that outsized moves will occur based on a previously failed trade? If so he doesn't need to increase size to show a profit. Or is he just flipping and reversing bigger just to get even? That is basically systemized revenge trading.
Sure, do anything small enough and you can make it look "good" eventually, but in general if you can't get your method to be profitable trading a single lot throughout, get yourself back to the drawing board. This kind of money management will just make you sloppy.
It's not the nominal range that is important to the way you trade, it's getting enough relative range, compared to what you have lost in the time beforehand to make up for it. But again, that is all besides the point, the question you need to ask is why are you increasing risk on losers in order just to come out minimally profitable, why not go the other way and push when you are ahead -- unless your objective is to paint the prettiest journal on ET. 
You can justify what you do in however many ways you like, it's apparent that is your determination so I'll just let it go.
You can justify what you do in however many ways you like, it's apparent that is your determination so I'll just let it go.
The only problem with the system is that if you are good at constructing key levels, there is usually a lot of consolidation at those levels. The slippage and small losses will add up. I suggest going over months and months of charts trading the right edge and tracking the peformance. You may find something else to add such as other cfs etc that can give different rankings and could increase the odds to 80%+ Put in the blood, sweat and tears and you will be rewarded.
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