MACD/Trendline Swing Trader

Rashid,

What sort of risk management and position sizing do you use? I read that you take a max of 3% loss in a position. Do you pyramid into your positions at all? Why/why not?

A pleasure reading your journal.

Best,

wallnbroad
 
I use this for my basic sizing where the 24,000 is 25% of account equity on Sunday...

(24000*(6/(AvgTrueRange[ATR,100,D]/Last*100)))/Last

I go up to 8 positions like this.. The 3% loss cut is per position so the position risk as a percentage of the account is quite small BUT is all positions suffered stop-outs there would be a 6% account loss which is a lot but the greater risk of loss focuses me to be more selective.

I am finding 8 positions more difficult to manage so I may drop to 6, increasing each allocation..

Rashid.....
 
Quote from retire45:

I use this for my basic sizing where the 24,000 is 25% of account equity on Sunday...

(24000*(6/(AvgTrueRange[ATR,100,D]/Last*100)))/Last

I go up to 8 positions like this.. The 3% loss cut is per position so the position risk as a percentage of the account is quite small BUT is all positions suffered stop-outs there would be a 6% account loss which is a lot but the greater risk of loss focuses me to be more selective.

I am finding 8 positions more difficult to manage so I may drop to 6, increasing each allocation..

Rashid.....
More...

Thanks Rashid,

"Last" is the most recent price?

And do you find it helpful to pyramid into your positions or do you just put your position on in one move?

Thanks.

wallnbroad
 
Yes Last is last price.. and I don't scale and I would like to scale out but the perfectionist in me prevents this. From time to time I try to but the whole position is usually gone less than an hour after the first half. Either fully in front of train or not at all...
 
Hi, retire45:

Your return is very good for a week like the past one! It's even more impressive considering you just suffered loss last week.

I noticed that your profit% varies from one position to another. So I assume that you are not using any predefined % gain as a target price. Do you monitor the positions in real time and sell when there is weakness? Or how will you describe your exit strategy.

Your reply will be appreciated and happy holiday!
 
improve,

Thanks.. Charts decide the exit and entry... I do monitor positions real time or with stops If I'll be away.

For example.. FSLR Short on break of 260, covered as 235 support approached.. Usually if you follow the charts there is some sense to the madness..
 
Thanks for the reply!

I wonder how much time do you spend to prepare for the market after market hours. Do you read much financial news? If yes, does it affect your decisions? I found too much information can do more harm than good.

Also, may I ask how many years (or months) did it take you to become consistent profitable when you started seriously as an trader/investor?

Thanks!
 
Improve,

About 90 minutes a night...

I have been "in" the markets since the 80's but have had ups and downs. My approach this year is one of a few I have tried over the years... I think the time goes into finding what works for you.. Then focus on that... peace will then find you.

News in it's pure form is good to read on a daily basis AFTER the trading day. I say after because you must avoid making any changes to your pre-planned trades based on news as it happens. News opinion on the other hand is evil and MUST be avoided at all cost.

I have always said the best trading is from an Island where I have charts, trade access and nothing else. The constant barrage of news and opinion is the source of stress in trading because the resulting bias it creates in your head complicates your trading. That's why I keep shorting Homebuilders in vain.

They are simply numbers moving around all the time... a game.
 
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