How "Pros" size their trades

oldtime · Mar 15, 2013

Quote from FrankSlaughtery:

the quantum fund trade had $10B behind it - it was not a billion. the idea was drunkenmiller's but soros was the one who convinced him to go big or go home.

can I just go home now?

I don't have what it takes to go big

I've already been broke once, and I never want to go back there again

Soros trades his real money like I trade my paper account

must be nice

deucy28 · Mar 15, 2013

Quote from oldtime:

well, I don't like to talk about it, because it causes so much contention, and I am tired of defending it

but I also add when it moves against me

good luck with your trading

and I'm sure you wish me the same

Reversion to the mean ?

We've had this conversation before. Huh ?

from my 8-12-2012 post, (after the bad link I installed there)..........

"My only change now from 2009 is to stay in trades longer and put on layers when trades go against me (after first researching my charts again). Second and third layers are marvelous."

http://www.elitetrader.com/vb/showthread.php?s=&postid=3596885#post3596885

goodgoing · Mar 17, 2013

Quote from Yana:

Do the Pros size their trades like how people are suppose to or do they "go for the jugular" more often than they would like to admit?

Pros and firms use special algos to size trades that seek for liquidity and do partial filss so that the effect on prices is minimized. Their objectives are different, the subject is too complicated and the math too complex for most people without a Ph.D. But you should at least know that.

kut2k2 · Mar 19, 2013

Quote from oldtime:

well, I don't like to talk about it, because it causes so much contention, and I am tired of defending it

but I also add when it moves against me

good luck with your trading

and I'm sure you wish me the same

That's not trading, that's gambling.

Good luck with your gambling.

oldtime · Mar 19, 2013

Quote from kut2k2:

That's not trading, that's gambling.

Good luck with your gambling.

I add to winners I add to losers

funny, everybody says adding to losers is the road to ruin, yet they never say adding to winners is conversely an excellent strategy

I've been doing this now since Oct 2011, only 3 losing months, and one of those was when I abandoned my strategy

it's all gambling

the trick is to not let your largest loser be your largest position

I trade 4 forex positions at all times

thanks for the well wishes

kut2k2 · Mar 19, 2013

Quote from oldtime:

I add to winners I add to losers

funny, everybody says adding to losers is the road to ruin, yet they never say adding to winners is conversely an excellent strategy

I've been doing this now since Oct 2011, only 3 losing months, and one of those was when I abandoned my strategy

it's all gambling

the trick is to not let your largest loser be your largest position

I trade 4 forex positions at all times

thanks for the well wishes

It's not all gambling.

Gambling is adding to losers.

Adding to winners can make sense if you don't use optimal trade sizing.

If you use optimal trade sizing, it doesn't make sense to add to winners.

oldtime · Mar 19, 2013

Quote from kut2k2:

It's not all gambling.

Gambling is adding to losers.

Adding to winners can make sense if you don't use optimal trade sizing.

If you use optimal trade sizing, it doesn't make sense to add to winners.

yeah, that Warren Buffet is one hell of a gambler

SeventhCereal · Mar 19, 2013

Who says you make money except for yourself? You make claims, you are are obligated to prove them.

Quote from Doobs789:

I can quote quantifiable edge for each trade I do. If there was no edge I wouldn't make any money.

Doobs789 · Mar 20, 2013

Quote from SeventhCereal:

Who says you make money except for yourself? You make claims, you are are obligated to prove them.

I never made any claims about my personal income or wealth. I am merely saying that if I wasn't able find trades with edge, then I would make no trades. Thus, if I am not trading, I lack the potential to make money.

How else would I know if a trade is a good/bad bet, if I could not quantify it somehow?

jack hershey · Mar 20, 2013

Quote from Doobs789:

I never made any claims about my personal income or wealth. I am merely saying that if I wasn't able find trades with edge, then I would make no trades. Thus, if I am not trading, I lack the potential to make money.

How else would I know if a trade is a good/bad bet, if I could not quantify it somehow?

SC misreads a lot of stuff and he avoids answering Q's.

But who cares?

I hope he looks up merely someday.

Trading nd gambling are different.

You make money when you can make money.