ES Journal Archive (2009 - 2010)
- Thread starter Jahajee
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7th up day in 8 days!
Go Airwaves, GO!!
LOL
Go Airwaves, GO!!
LOL
Do
Not
Trust shorting TDAYS
I rarely get involved in these pesky debates and eventhough I agree with you and Atticus on Schizo's flip flopping science fiction trading I felt I had to interfere when it comes to Ammo.
Ammo is actually doing brilliant trading and I will explain why.
ES is an extremely whippy instrument and by placing trades with small stops you risk the typical infamous "death by a thousand stops" so by doing what he does he takes care of this problem.
Contrary to traders averaging down in lunacy as you stated, ammo not only has a max risk parameter aka emergency max pain, but he is also consistently managing his average fill when realizing he is wrong. I'm sure the guy is properly capitalized.
His decision for mostly going short probably has to do with his experience with the markets. Market as whole is far more likely to have an enormous drop overnight than a double digit upside move. On top of that what a coincidence that "Flash Crash Day" was on the downside. When we will see a "Flash Rally" on the upside on the markets ?
Once again, just like Atticus stated, Ammo is the reason I read this journal, I just wish he had a writing style with more clarity, as sometimes his writing is lazy and confusing, but the concepts are solids.
That's it for me at this point, good trading.
If you have max pain parameters, it's hard not to make money averaging down in choppy instruments.
This of course assumes a great deal of capital.
Contrary to ignorant opinions, infinite capital is not required, just enough so that the max pain losses allow you to trade another day.
Ideally you want the winners total to surpass the max pain loss before another max pain loss occurs that's pretty much the most important rule when adding to losers. And yes, most definitely, without a max pain loss parameter you are doomed.
The above incorporates a great deal of my trading. Most don't trade the lunch hour because of the chop, this is precisely when I work the most.
Even on a trend day down or a trend day up ES has a hard time trending during the lunch.
Try to determine days or time with higher probability of ranged trading and averaging down money management techniques that are generally viewed as taboo become a golden goose.
No Heat,
Thank you for those insights very interesting logic, always a pleasure to read distinct styles of trading.
I suppose you consider taking heat as opportunity hence your username?
ESD
Thank you for those insights very interesting logic, always a pleasure to read distinct styles of trading.
I suppose you consider taking heat as opportunity hence your username?
ESD
.yhanks ..t for thre kudos . i dont know what i'm hitting but most of my messages start out like this and i have to retype,....I'm ADD,...i have trouble capturing all the details so i try to get the overall gyst,....this is the reason i average in, ..i think its topping but not sure where,...sometimes the reader won't get it because i fail to convert the gyst into fact,....ADD 's can pay attention to several things at once easier than concentrating on one thing,so sometimes i'll post 3 times to make a point...as far as the fighting on here ..nex i apologize for any negative comments towards you...for the market the oex res line we are massaging was posted earlier this week, the eur/usd is back below its hns neckline and the dow could fall back to 9950
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