ES Journal Archive (2006 - 2008)

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Definition of TLNW is just that. Total Liquid Net Worth. Basically, anything that can be converted to cash immediately. Stocks, Futures, Bonds, Gold ,Real estate Equity( if it can be made into cash instantly) etc. I base my maximum stop loss at 2 percent (or less) of the TLNW at the time of the trade initiation. If it fluctuates from market activity in other markets, I don't pay attention to that. I am moving my stop out in the direction of the trade, so my stop loss is contracting at all times. Other trades will be stopped at 2 percent or less. It would be possible for me to put on 50 trades at once and have them all lose 2 percent immediately and blow my TLNW out. What are the chances of that? Very close to nil. For one, I don't put on 50 trades at once, I put on 5 to 10 (or less). Secondly, I would have to be wrong on all 5 to 10 and all stocks, bonds, etc that are not margined would have to tank unbelievably at the same time. It's just not going to happen. The 2 percent rule (or less), will always keep the trader in the game. Thanks for your questions about TLNW and good fortune to all!
 
Quote from limit:

I would say this entire episode boils down to accountability. If you REALLY post with the intention of having people learn, if you want the respect that comes with making good calls, then you need to provide what is asked. Otherwise it's all just chest pounding as someone else said. I've traded the ES for 10 years now and I've seen this same scenario repeated many times. Most times it ends badly with the methods being proved worthless. I don't think these fit in that category, the jury is still out.
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So what did you benefit the other day, when I honored your request to come to chat and post my trades ? Not a damn thing. I even took the time to pm you the exit. My guess is it was of zero benefit as you are still a skeptic and it did nothing to benefit you. Same holds true for every trade posted here that is posted numerically and without the justification or trader's reasons attached to it. The starter of this thread himself never posted a target on his trades, and up unto a few days ago rarely posted his stop. As I said before, you can thank a few for running the good traders off of this thread that used to post consistently. Now I realize why they left.
 
I've been posting my stop for months now. I realized a while back that it is of no help to anyone, most notably the poster, if the exact real time enrty and stop are not being posted. It's very easy to post trades without exactness and that does noone any good. As I have said, it is not required to post exact trades here, but if they are posted and do not contain exact numbers in real time, they will be disregarded. Thanks --Ishmael
 
Quote from Buy1Sell2:

Definition of TLNW is just that. Total Liquid Net Worth. Basically, anything that can be converted to cash immediately. Stocks, Futures, Bonds, Gold ,Real estate Equity( if it can be made into cash instantly) etc. I base my maximum stop loss at 2 percent (or less) of the TLNW at the time of the trade initiation. If it fluctuates from market activity in other markets, I don't pay attention to that. I am moving my stop out in the direction of the trade, so my stop loss is contracting at all times. Other trades will be stopped at 2 percent or less. It would be possible for me to put on 50 trades at once and have them all lose 2 percent immediately and blow my TLNW out. What are the chances of that? Very close to nil. For one, I don't put on 50 trades at once, I put on 5 to 10 (or less). Secondly, I would have to be wrong on all 5 to 10 and all stocks, bonds, etc that are not margined would have to tank unbelievably at the same time. It's just not going to happen. The 2 percent rule (or less), will always keep the trader in the game. Thanks for your questions about TLNW and good fortune to all!
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Thanks


So in reality, the stop can actually exceed 2% of tlnw, if the other positions are losing.

Seems like you would have to be highly diversified for this to work properly.


Say you tlnw is 500k, what % do you recomend to be allocated for the trading account ?

This is where gets confusing to me. Say your tlnw is 500k, and your trading account is 100k, then on each trade you are risking 10% of the account ? Or 2% of the trading account tlnw ?


What % of your tlnw does your trading account make up ?
 
Quote from Buy1Sell2:

I've been posting my stop for months now. I realized a while back that it is of no help to anyone, most notably the poster, if the exact real time enrty and stop are not being posted. It's very easy to post trades without exactness and that does noone any good. As I have said, it is not required to post exact trades here, but if they are posted and do not contain exact numbers in real time, they will be disregarded. Thanks --Ishmael
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IMHO your post's were more meaningful than just posted numbers back when you used to post actual charts and your reasoning behind the trade such as the divergence etc.
 
Quote from volente_00:

Thanks


So in reality, the stop can actually exceed 2% of tlnw, if the other positions are losing.

Seems like you would have to be highly diversified for this to work properly.


Say you tlnw is 500k, what % do you recomend to be allocated for the trading account ?

This is where gets confusing to me. Say your tlnw is 500k, and your trading account is 100k, then on each trade you are risking 10% of the account ? Or 2% of the trading account tlnw ?


What % of your tlnw does your trading account make up ?
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Trading account is roughly 20 percent of TLNW . Risk on any one trade/idea is 10 percent of the trading account. If other positions are losing and the TLNW is drawing down, my risk may be momentarily greater than 2 percent of TLNW , but it doesn't matter. It is based upon the TLNW at trade initiation.

500k TLNW would warrant a 100k trading account. 10k could be risked on a trade .
 
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