yes
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ES Journal Archive (2006 - 2008)
- Thread starter Buy1Sell2
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yes
Quote from JSSPMK:
which you would miss out on if you stop trading after you are down -3 points on a trade
ImPO it would be better to have a daily stop of -9 & reducing your position size by /3, otherwise you will be missing out, especially so considering your rules of 10,20,30 which can all take place on 1 day.
if one has 80% win rate it makes little since to be afraid to trade size just to avoid losing on the same size 20% of the time. As long as your r to r is at least 1 :1 then reducing size will only make you less profitable.
Quote from jagmot:
Extremely low leverage. I agree with OT about pulling hard stops in low volume periods.
Say your account is $200,000. You could easily hold 25 ES contracts overnight and have plenty of excess liquidity. Now imagine, if you only traded 2 contracts? Even if you took a 50pt loss, you would only lose 2.5% of your capital. 100pt loss, 5%.
Now imagine someone who has 2MM in capital and they can make a very comfortable living (especially with TBills or other interest bearing instrument)
The only problem with trading like this is your return on capital is low.
I saw trading like this when I worked in Private Banking. The average customer had 5MM and had 80% in munis and then 20% in safe conservative trades to keep up with inflation.
Nope. Use of leverage (or not) only affects ACCOUNT RISK. It has no affect whatsoever on MARKET RISK. If you go running naked through the Brazillian rainforest, the (number of) freckles on your arm does not augment, nor does it diminish, the possibility of getting hurt.
What you are really referring to is position sizing also known as money management. The question of using an overnight stop or not isn't one of "can I", it is one of "should I". Regardless of the answer, MARKET RISK remains unchanged.
Your scientists were so preoccupied with whether or not they could that they didn't stop to think if they should. Jurrasic Park (1993)
Osorico
Quote from volente_00:
if one has 80% win rate it makes little since to be afraid to trade size just to avoid losing on the same size 20% of the time. As long as your r to r is at least 1 :1 then reducing size will only make you less profitable.
So why would you stop after you get -3 on any 1 trade? Maybe your average position size is too big to cope with losses psychologically? After all the market doesn't care if you are down on 1 trade, if there is another high probability set up that same day you prevent yourself from exploiting it.
Quote from JSSPMK:
So if you start a day with a trade that puts you @ -3 points you do not trade again that day?
yes
You are a fascinating man Vol, so fascinating in fact as to be well beyond my comprehension.
Here am I thinking in blocks of trades to give me the ratios that I desire and there are you totally focused on the outcome of the next trade.
The simplest way out of your first trade of the day killing your day dilema, is to set a stop less than -3 points.
The way you can allow yourself the luxury of having another bash at the markets on the same day.
regards
f9
So if you start a day with a trade that puts you @ -3 points you do not trade again that day?
yes
Quote from volente_00:
yes
You are a fascinating man Vol, so fascinating in fact as to be well beyond my comprehension.
Here am I thinking in blocks of trades to give me the ratios that I desire and there are you totally focused on the outcome of the next trade.
The simplest way out of your first trade of the day killing your day dilema, is to set a stop less than -3 points.
The way you can allow yourself the luxury of having another bash at the markets on the same day.
regards
f9
Quote from ammo:
it's possible that vol has charted his results and found that on the days that he has that happen the rest of the day is usually a loss so he knows his mental weaknesses and controls them, it's a form of discipline
ammo
Interesting explanation but help me out here please..........
How can he chart what does not take place because of his "no more trades for the day rule"
regards
f9
Quote from ammo:
you lost me f9,watching the market has nothing to do with trading or not trading,you watch it all day and don't trade until u see a setup,sometimes u don't, yesterday was a perfect example of summer trading with spus between 99 and 03 for about 90% of the day
fair enough ... we may never agree.
I believe that the charts have quite a different impact on the player when he/she is actually trading a real account with a monetary outcome than just reviewing or replaying or siming.
It is the reason why when reading this thread I skim over the trades posts and just stay with the comments posts.
regards
f9
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