Can it be done..i.e. same process with 1 contract? What about with 3? What about with 4?
No day trader on this planet can make yearly profits
- Thread starter teewoods
- Start date
Speedo, can I ask you a question? If you take an operation in the smallest timeframe of 3000 ticks you rely on that same timeframe to close the operation or you look at a higher timeframe to close the operation.
Hogwash
Don't gamble if you want to survive long term. Pull profits out routinely to support your lifestyle and have long term investments (diversification).
To help minimize the risk of ruin...reduce the amount of risk per trade as the months / years go by (prudent money management), welcome (embrace) a little luck when it does show up and do not be dependent upon income from day trading to maintain your lifestyle.
If you can do the above prior to entry into day trading or soon after...you'll be ok as a day trader. Too many traders get involve into day trading as their primary source of income, quit a job that provided insurance, under-capitalized, heavy debt and so on.
The point, you need to do a lot more than just use a profitable strategy and it starts prior to day trading.
wrbtrader
I keep things simple, I use targets based on average maximum favorable excursion. My targets, break even and stops are triggered in an ATM (automatic trade management) module on my execution platform. I will move a stop toward my target if it prints a higher low-lower high between my MA's. Depending on current volatility, my target will be either 10 or 12 ticks. My stop is never more than 7 so either I enter on a stop or if the trade triggers beyond that, I enter on a limit order. If it goes to my break even trigger of 8 ticks before I get filled, I pull the order. Most lengthy moves will offer multiple trade opportunities but if one doesn't, I don't worry about it. My wins are larger and more numerous than my losses and I get plenty of signals. The plan works for me and my personality. There are those who won't like it and some who will....we are all different and you have to find what works and what suits YOU.
Don't worry about it. I was just trying to explain how research is done to detect patterns, inefficiencies, anomalies in the market which may be exploitable. Arb traders are more interested in that sort of thing - it's a lot of math and computer analysis.It is very depressing. I clicked your link, stared at the article for 30 min and had no clue what they were talking about. Then I googled Markov chain and read up in wiki, still have no clue and how to use it to trade.
There are many ways to skin a cat and there are sufficient tools out there for traders to develop a workable plan. That said, testing is important. You want to have an idea of what might work and what doesn't work. I like TradeStation Easy Language because you can build just about any system and test it. I and others have built templates for system development which are essentially just cut and paste your ideas into the template and test them. I'm sure they're still over there in the library. NinjaTrader is okay but the Wizard is extremely limited. If you're not a programmer, Ninja is hard to use.
It is the nature of price discovery to continually test support and resistance points....been going on a lot longer than algo development.
So we have about what...4 or 5 guys on this entire "elite" trader forum that are killing it...seems that OP isnt as far off as some of you care to admit.
and yes, i too am a bitter shit bird that sucks at trading. It can be done but it seems that very very very few are actually doing it.
and yes, i too am a bitter shit bird that sucks at trading. It can be done but it seems that very very very few are actually doing it.