How to trade like a retarded genius - an actual strategy that works

[mikeriley]

Without any data there can be no understanding of its value or performance.

Mason, this JMHO, but I believe the only understanding
that matters comes via experience and not reading
another traders data points. Especially since average
numerical values will fluctuate between different traders.

When I trade I try not to look at profit, but only
trying to EXECUTE a certain amount of ticks.

Whenever I'm focused on "profit", it throws me
off for some reason.

I use a 3 - 6 ratio - Stop once I reach 3 wins
or 6 losses. Yes, I know, that ratio does
not work on paper. But the objective is to
improve trade selection, and I know if followed
religiously, eventually trading 3 for 3 becomes
a habit.

 

[smallfil]

It is not quantity but, the quality of trades. If you trade the best setups only, your win rate and profitability goes up exponentially. Of course, you have to handle the risk too. Control those losses. Keep it small.

 

[nooby_mcnoob]

I dont know about the rest of your post, maybe some stuff ist true, but it is way too much words for my taste for something as simple as trading.

But your points about risk, this is something that I think could turn around trading for many many beginners, who think about making hundreds or thousands in one day and then lose it all in one trade.

As a beginner, yeah, some SIM trading is needed, but after a while, you have to put real money on the table. But it has not to be much. Dont start gambling for 500$ per trade or something like this. The less the better. I think we would have many more profitable traders if they would slowly get into this, risking only something that really does not bother them, something like 5$ per trade. 1$ per trade, 5$ per trade, and then fire the trades out like a machine gun. Get rid of the fear from trading, the fear from pushing the button. Get away from that stupid overthinking of single trades. One trade means NOTHING, but people analyze for 1 hour if they should get into that trade now or not, and then if they finally get into that trade they are nervous and uncomfortable for another hour... thats not fun.
Trading should feel fun. Trading should make you feel in control, not like a prey hoping to not get slaughterd.
Reduce your size, to the point where you really dont care about a single trade, so you get used to blast out trade after trade. That way you wil learn quickly to make 50+ trades per day. With so many trades you will learn much faster, what works and what not, you will get so much feedback from the market. Screen time is fine and necessary, but there is active, "quality" screen time and there is screen time where you basically do nothing, no interaction with the market which is not the same as the time when you get really engaged with the market.

My post is directed to those who are/ want scalp trading, but since so many here dream about consistency and trading for a real income equivalent I think this is relevant for many of you, because scalping means consistency. You will never achieve the same consistency that you can achieve with scalping if you just do 2 or 3 trades in the ES or NQ per day. Simple math/ statistics.

Risk management is literally all of it. You can almost do random entries and still be breakeven if not profitable. You summarized it very well: get used to pumping out trades.

 

[nooby_mcnoob]

Nicely done. so when you set it up and run it for let's say three months, what is the average number of trades per day? What is the average profit per trade? Without any data there can be no understanding of its value or performance.

Sorry you'll have to do it to learn those stats but I may have a final surprise for my friends here later.

 

[Laissez Faire]

1. Enter at extreme points only

Thanks for sharing this, @nooby_mcnoob. I will read it in detail later.

IMO, this point quoted could be the most important one, though. Trade the edges, not the middle.

This means that a lot of time will be spent waiting for the right time/price to enter. I bet this is where most people mess up being impatient, early and deep in the red by the time the time to act is there.

 

[nooby_mcnoob]

You actually got me until I read your suggestion that being a small fish in a big pond is the thing.

you better be a big fish in a small pond

I don't want the responsibility of moving markets

 

[nooby_mcnoob]

Thanks for sharing this, @nooby_mcnoob. I will read it in detail later.

IMO, this point quoted could be the most important one, though. Trade the edges, not the middle.

This means that a lot of time will be spent waiting for the right time/price to enter. I bet this is where most people mess up being impatient, early and deep in the red by the time the time to act is there.

You got it

 

[mason macgregorson]

Sorry you'll have to do it to learn those stats but I may have a final surprise for my friends here later.

your post is worthless - just conjuncture; devoid of outcomes.

 

[nooby_mcnoob]

your post is worthless - just conjuncture; devoid of outcomes.

Are you worthy of free value?

Said another way: VERY CLEARLY, the value is in the entries and exits.

Why on earth would I think you are worth it?

 

[ph1l]

Risk management: This is my own script. It is a giant mess, but it works. for me. https://www.tradingview.com/script/v7RR4jst-ATR-based-stop-for-noobs/

The script is not at the link.