how to trade a slow bleed
- Thread starter silk
- Start date
I think it's a mistake to categorize a year based on the first 5 weeks. The sp alone has traded in a 10%+ range already this year. While intraday, there hasn't been a lot of meat, if you have a longer horizon, you can do quite well.
This is definately a fader's market. Trend followers have had trouble lately.
This is definately a fader's market. Trend followers have had trouble lately.
Stopping trading or continuously switching strategies during a drawdown period for a positive expectancy strategy is precisely why traders blow up... Silk has a positive expectancy strategy over the longer run (this is apparent from his trading comments on another site)...
My advice (fwiw) to Silk is to continue trading the same way he has been trading, albeit with a reduced size, taking into account position sizing considerations... what differentiates the successful from the failed trader is the ability to stomach a potentially long series of consecutive losses in implementing a positive expectancy strategy... a priori, one cannot know in advance when the equity curve can turn back upwards from a drawdown, for a positive expectancy strategy... slow bleed blow ups often originate from not being there for equity curve turns i.e. not executing a positive expectancy strategy on a consistent basis...
You totally miss the point, my friend...
if the dude hangs fire now, sod's law indicates that he will suddenly miss 10 straight days in a row when his system would have made him BIIIIg bux.
And he will then jump back in only to find it has turned again, and he bleeds some more. Granted he won't 'blow up' in the generally accepted sense of the word, but the constant bloodletting can be just as fatal....
Scale back your size dude, and jeep doing it. It can't rain all the time.
And he will then jump back in only to find it has turned again, and he bleeds some more. Granted he won't 'blow up' in the generally accepted sense of the word, but the constant bloodletting can be just as fatal....
Scale back your size dude, and jeep doing it. It can't rain all the time.
Precisely...