Improving Exits Exercise

[version77]

Quote from acrary:


Once you've exited a position, you can buy or sell at any time, however if you're out of the market for 10 bars you'll need to flip the coin and enter on the next bar based on it. (This is done to avoid paralysis by analysis

I hope you not suggesting that we do this with our real trading?
If one is using a mechanical entry, then why would this help?
Wouldn't you have to wait until you got "your" signal?

 

[version77]

Quote from acrary:

If the total pts. you won were less than 1/3 of the total pts. available, then you need to study why you exited either early on winners or late on the losers. Like I said, this tells more about your mental state, than the markets.

If your system is based on scalping for small profit targets
but using many contracts then why would this tell you anything?
Do you know why 1/3 was picked instead of any other fraction?
If the market was real choppy then it would tell more about the
market vs. anyones mental state.

 

[version77]

Quote from acrary:


If you're posting a negative number, you may have a fatal flaw for trading. A fatal flaw could be something like thinking subconciously , "profits in the markets represent stealing from the hard working Joes of America". You may not even realize it, but if you're posting a losing number, then you're subconcious is telling you you're not worthy or some such drivel.

I think most traders have the mindset that they want to take
money out of the markets. If they post a negative # with this
exersize, it probably means they have a POS approach. I
seriously doubt that it has anything to do with self-esteem.
It is true that if you are losing, it doesn't feel as good as when
you are winning but traders don't lose because they have a
subconcious desire to throw their money away because they
feel they "are not worthy" as they used to say on SNL...

Inexperience can also be a big factor...

 

[version77]

Quote from acrary:

If you routinely do this exercise and are posting a negative number, then you should seriously consider doing something else besides trading.

At the very least, one should reconsider their approach to the
market, because the one they are using now is flawed...

All of the above statements are just my humble opinion...

 

[Stock_Lover]

not a bad exercise

but longer timeframes than a scalping mentality

 

[kut2k2]

I hope you not suggesting that we do this with our real trading?
If one is using a mechanical entry, then why would this help?
Wouldn't you have to wait until you got "your" signal?

Exactly. A trade is composed of two transactions: an entrance and an exit. Both are important. All exercises involving random entrances are patently ridiculous.

 

[Visaria]

Thanks for resurrecting this. Acrary's post relates to psychology. I'm gonna try it!