ES Journal Archive (2006 - 2008)

[Spectre2007]

heres an adage...

in a sea of bearishness with never ending negativity and news, the very few points of countertrend opportunities are used to sharply shake the market... out of its predominant positions..

 

[Buy1Sell2]

Quote from smilingsynic:



One can still be up for the year and still have drawdown.

EVERYONE has drawdown, because it is impossible to eliminate losers from the process of trading.

Drawdown is the percentage of dip in equity before the equity hit new highs.

I understand that and have been reviewing that since my posting. From a high in equity to a low in equity over the year the account was down at one point 6.3 percent. (6.394 to be exact)

 

[volente_00]

Quote from Buy1Sell2:

When I typed the words "trading account only", what I was meaning was that the return on the trading account by itself was 92%. This was a better than average return for me. It usually falls between 50 and 80 percent. The return on TLNW was much less as my trading account represents roughly 20 percent of TLNW. Thus, when I am risking 2 percent of TLNW on a trade, it is 10 percent of the trading account.

thanks for clarifying. How is that any different from me trading a 10 lot on a 10k account with a 2 point stop ?

 

[smilingsynic]

If ES < 1379.50 = expect big-time selling

 

[apex82]

Quote from apex82:

exiting 75 % here at 1382 for 1st target

stop moved to be... new highs now?

out at BE

 

[smilingsynic]

Quote from Buy1Sell2:

I understand that and have been reviewing that since my posting. From a high in equity to a low in equity over the year the account was down at one point 6.3 percent. (6.394 to be exact)

With a record like that, you should give John Henry a call. Let me see, that number is the Rolodex SOMEWHERE.

 

[Buy1Sell2]

Quote from smilingsynic:

With a record like that, you should give John Henry a call. Let me see, that number is the Rolodex SOMEWHERE.

The key for me is to always trail the stop up or down. I start at a max of 2 percent and trail from there. I have several trades on at the same time and on the rare occasion that I might have a 2 percent(10 percent ) stopout the diversification has other trades earning.

 

[smilingsynic]

Quote from Buy1Sell2:

The key for me is to always trail the stop up or down. I start at a max of 2 percent and trail from there. I have several trades on at the same time and on the rare occasion that I might have a 2 percent(10 percent ) stopout the diversification has other trades earning.

Trend followers in general (position traders, not daytraders) tend to experience 20-30% drawdowns or more. They aim for a return around twice the drawdown (40% returns with 20% drawdown would be regarded as exceptional).

Trailing stops explain some of your returns, but most trend traders use them, so there is nothing magical about that. I have never heard of a position trader have a return 15 times the drawdown. You must have something else.

What is it?

 

[smilingsynic]

Quote from smilingsynic:

If ES < 1379.50 = expect big-time selling

Covered 1/2 puts with ES at 66 (trade mentioned yesterday).

 

[vertigo3]

today's weakness has me wondering:

huge, busted trades movement in AH 1/14/08 at 2:05am bar saw High of 1433.25, Low of 1358.75

SPectre mentioned 1358 (as the reaction low of the bizarre action), but didn't really give an explanation for mentioning the number

jeez, is that 1358.75 going to have to be tested even though it was a busted trade?

FWIW, the fact that the globex hit that level before bouncing, means there was some sort of electronic buying size at that level.