In trading, results are interpreted statistically. You can't make sure that every trade goes in the right direction first, but you don't need to, in order to be successful overall. The idea is not to get stunned by an adverse price move and hope and pray, but to just get out immediately. Then be ready to re-enter in the new or the same direction (execute) as your monitoring, analysis and decision process dictate. Ideally you can probably become proficient enough to just reverse everytime after a wash. This concept works better in the more liquid and less choppy markets. It also teaches you to find higher probability entries, especially when you're a beginner.
Jack Hershey "WASH" technique
- Thread starter Chicken Little
- Start date
but then remains the question where you see the line between a "wash" trade - as you call it - and a "normal" losing trade - let's say in the ES for example.
if i trade with 1 pt. stops - what is this for you? you have to give the market a little room after your entry - otherwise all you keep doing is entering and exiting all through the day and make your broker happy. and being stopped out or "wash" or "scratch" is by far not a reason to enter in the opposite direction of your stopped out trade. being in a trade and getting a signal in the other direction would be reason enough to exit AND reverse - ok. but being in a trade and getting simply stopped out (or whatever you may call it) is alone no reason to reverse.
Bruce Kovner said something to the effect that stops should be placed where, if hit, you'll be proved wrong. But what does he know? He never returned -24% in a trading contest like Jack Hershey did!
Trader666, gerry 875, others,
How do you place your stops? Can you disclose how do you trade and what is your trading performance? Where from / how did you learn to trade? Do you consider yourself a beginner, intermediate, or mature trader? What assets are you trading? How long do you hold your positions? What kind of money management (position sizing) are you using?
Let's compare notes!
How do you place your stops? Can you disclose how do you trade and what is your trading performance? Where from / how did you learn to trade? Do you consider yourself a beginner, intermediate, or mature trader? What assets are you trading? How long do you hold your positions? What kind of money management (position sizing) are you using?
Let's compare notes!
Bruce Kovner just confirmed my system......as i read this for the first time.....never even heard of him......until now..........when my stop is hit trade is bad ...slight loss to breakeven.......i would rather miss a run than set a loose stop.............anyone ever heard of "safe stops"?
i read a trading guru the other day named robert lyondell.......he says stops can be found that are safe.......that is when a trade is good these points are 100% safe.....won't be hit.....they are very tight, such as never over 6 pts ym........and almost never get hit .......very rarely do they get hit as he always has time to move to be plus 1..........but if they are hit trade is always bad anyway........gone the other way....bad ......sound wild to me.....any comments?
who says that i trade at all? maybe i'm just rich and bored and this is one of the places where i'm getting some entertainment on a rainy day? every once in a while i choose a smarta$$ and test him until he freaks out.
maybe i trade and make much more than that lousy 3 times daily range. take a 1-second bar chart and get an idea what the market REALLY offers any day - it's much more than 3x h-l.
but - the point is that i do not have to prove anything - i am not the one who constantly comes up with those extraordinary claimes about what i do, what i know, what i make, etc.