on SWM he was down ~15K which was maybe -5% from where he entered. SWM could have gone down >50%, which is known to have happened to various stocks. Since presumably there were no stops in place, the risk was ~50% or more. So lescor was prepared to take 150K dive I presume. The reward was ~1% I assume. You can estimate R:R from this to be on the order of 50:1.
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Grinding it out, day after day
- Thread starter lescor
- Start date
on SWM he was down ~15K which was maybe -5% from where he entered. SWM could have gone down >50%, which is known to have happened to various stocks. Since presumably there were no stops in place, the risk was ~50% or more. So lescor was prepared to take 150K dive I presume. The reward was ~1% I assume. You can estimate R:R from this to be on the order of 50:1.
exaltedangel09
Guest
Hi, this is a great thread, and don't get me wrong the OP is great, but some of you are putting him at god-like ability. I've worked at different prop firms and after reading this thread I didn't learn anything.
It's pretty obvious what his strategies are, but I will not discuss them openly. If your interested in what his strategies are PM ME.
It's pretty obvious what his strategies are, but I will not discuss them openly. If your interested in what his strategies are PM ME.
Quote from exaltedangel09:
Hi, this is a great thread, and don't get me wrong the OP is great, but some of you are putting him at god-like ability. I've worked at different prop firms and after reading this thread I didn't learn anything.
It's pretty obvious what his strategies are, but I will not discuss them openly. If your interested in what his strategies are PM ME.
Are you making 20k a week? Just curious..
DeltaSpread, thanks for your post. I appreciate hearing that and am glad you've gotten something out of this thread.
Regarding risk:reward, again, you guys have to remember that I am trading multiple different strategies all with different stats and time frames. I can't answer a question about what I look for "in a trade" without breaking things down per strategy.
Yes, I could go through my stats and calculate the r:r by looking at all the winners and losers. But then I'd have a number that I wouldn't do anything with. It might be interesting to know but wouldn't change the way I trade.
Your 50:1 SWM example is ludicrous.
Regarding risk:reward, again, you guys have to remember that I am trading multiple different strategies all with different stats and time frames. I can't answer a question about what I look for "in a trade" without breaking things down per strategy.
Yes, I could go through my stats and calculate the r:r by looking at all the winners and losers. But then I'd have a number that I wouldn't do anything with. It might be interesting to know but wouldn't change the way I trade.
Your 50:1 SWM example is ludicrous.
Quote from shortie:
on SWM he was down ~15K which was maybe -5% from where he entered. SWM could have gone down >50%, which is known to have happened to various stocks. Since presumably there were no stops in place, the risk was ~50% or more. So lescor was prepared to take 150K dive I presume. The reward was ~1% I assume. You can estimate R:R from this to be on the order of 50:1.
Yeah, these all seem like reasonable assumptions to me. Perfectly logical....
The insanity in this place never ceases to amaze me.
Quote from shortie:
why is that? would not you lose 150K if it dropped 50%? if your target was let's say 5%, it is still 10:1 R:R for this trade. this is just the reality of trading without stops.
So if you trade ANY stock overnight, knowing a stock could go down 50% overnight (and your stops will be useless) that means you also have a 10:1 or 50:1 r:r? What about probabilities?
Quote from neke:
So if you trade ANY stock overnight, knowing a stock could go down 50% overnight (and your stops will be useless) that means you also have a 10:1 or 50:1 r:r? What about probabilities?
i understand what you are saying. there are different R:Rs. there is R:R for a given trade which could be extremely good or bad and there is cumulative R:R that covers many trades.
yes, if lescor averages all his trades for the last several years (max drawdowns, profits, losses) he will have a cumulative R:R which is much better than 10:1.
but the outlier trades have to be focused on for the worst case scenario. an RTM trader can blow up with just one or several outliers in a row.
in my example, lescor would have certainly be able to stomach 150K=3-4month profits.
Excellent thread... just read again from the start.
Can you tell me; what is your long vs. short ratio?
How do you maintain (do you maintain) a market-neutral mindset?
I found this past week that my personnal (market-short) bias materially handicapped me. The previous week it served me well. This weekend I'm trying to return to a more neutral stance... try and and "get back in the zone". Any "tricks" for getting your psychology back on track after leaving the zone?
Cheers, Joe
Can you tell me; what is your long vs. short ratio?
How do you maintain (do you maintain) a market-neutral mindset?
I found this past week that my personnal (market-short) bias materially handicapped me. The previous week it served me well. This weekend I'm trying to return to a more neutral stance... try and and "get back in the zone". Any "tricks" for getting your psychology back on track after leaving the zone?
Cheers, Joe