Originally posted by jboydston
Indeed easyrider... 90%+ of my profits come from SHORTS. Does anyone else suffer from extreme bias of this sort? I just cant pull of a long to save my life. Might be a rough week for me coming up
More info:
http://www.elitetrader.com/vb/showthread.php?s=&threadid=6147
And in case any of you missed my request the first time, I'm still looking for software that will plot my trades on a chart. (Better for sharing
)
http://www.elitetrader.com/vb/showthread.php?s=&threadid=6589
jboydston,
You obviously have confidence in your Short position trade setups. Same here.
Further...if you ever meet someone that saids...never have a bias...that's someone that's probably not a trader.
A trader will always have a bias.
Yet...a big yet...those that are successful have learned to exploit that bias via knowing its strength and weakness.
What's important to remember and practice is to balance your risk exposure to offset any bias you may have.
For example...this is how I control my risk...via what ever chart interval your using to see the
big picture...if its a bear trend...my Short positions are via their normal contract size. Thus, if I normally trade 9 contracts...that contract size is maintained and I often breakup the
Covers into 1/2 or 1/3's to lock in profits and to capture more profits with the remainder.
However...during that same bear trend...if I get a Long position trade setup I have confidence in...I take the trade...but with a reduced contract size of 1/3 or less and exit all at once.
And the oppositie is true for those bull trends...my Long position are via their normal contract size. Thus, if I normally trade 9 contracts...that contract size is maintained and I often breakup the
Exits into 1/2 or 1/3's to lock in profits and to capture more profits with the remainder.
However...during that same bull trend...if I get a Short position trade setup I have confidence in...I take the trade...but with a reduced contract size of 1/3 or less and Cover all at once.
This is one major method I employ to control my risk. This method also allows me to continue learning from both my Long and Short position trade setups regardless if the market is going up or down.
The obvious advantage is that when the market has those
trend reversal days I'm either profitable or my loss has been greatly reduced so that it's nothing to be bothered by.
More importantly...you are less likely to hold a strong bias (getting into a deep seated habit of only going one way in the market) and are able to let go quickly (change course) to capture points from the new trend in its earliest stages of developement.
With that said...no matter how I or anyone else employ risk control while trading the eminis...do what's best for your trading personality and wallet.
Also...I did a quick research on software your looking for...and I couldn't find anything. However...I still believe if something like that exist...is something that's being used by in-house at some firm and is very expensive.
NihabaAshi
