Oh No, NOT Another S&P EMini journal...

Quote from goodday:

Let us not split hairs about labels or trivialities, but concentrate on the big picture of trading, trading successfully and helping others trade successfully. We are all in the same boat... facing the same challenges that market throws at us. Every one has something good to contribute, to open our eyes to new possibilities... and help us along the journey... Let us rejoice in our community spirit.
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I thought you weren't into spoon feeding :) Anyway, it was just a commentary, labeling helps distinguish between right and wrong. Before he posted the image, I thought he was compounding gains as soon as they become realised, now he clarified, I see the difference. No disrespect was intended.
 
Quote from romik:

that is a very conservative compounding, in fact it is so conservative that I would not even call it compounding, which I have never supported.

What I see in your attachment is increasing position size as the ratio between gain/loss increases. And the way you add contracts is also pretty steady. What you do I do not class as compounding, but increasing position size based on previous results and I agree with that strategy 100%.
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You are right. It is VERY conservative by design. However I can open the throttle and let it rip when I feel like it. In the end I simply get to the level of exposure where I want to trade. So capital is never an issue. Strategy tied to compounding or position sizing makes profits. U need both.

Here are the same trades with foot on the gas. But can you psychologically travel that journey? Jesse Livermore could but he didn't know when to lighten up. So he blew up.
 

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Quote from KRSNA:

You are right. It is VERY conservative by design. However I can open the throttle and let it rip when I feel like it. In the end I simply get to the level of exposure where I want to trade. So capital is never an issue. Strategy tied to compounding or position sizing makes profits. U need both.

Here are the same trades with foot on the gas. But can you psychologically travel that journey? Jesse Livermore could but he didn't know when to lighten up. So he blew up.
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There is just 1 problem (perhaps there are more) - you can not calculate probability with 100% certainty and that results in uncertainty of outcome of an overextended compounded position. As I said I agree with your conservative approach, but not with a basic compounding principles. Slowly/steadily increasing position size is my favourite way of doing business.
 
Now finally I want to see if the strategy has a deadly weakness. Will she blow up over 2,000 trades with unlimited lots? Every single trader who has been wiped out either did not have a profitable strategy or did not use lot size correctly.

If it does not blow up I simply adjust to a level I can trade at and now I have gained as much confidence as is possible from the past to trade in the present.

The real purpose here is to show that capital is your last concern. Just get consistent and increase lots.
 

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Four trades so far this morning:

1. Long scaled in (2+1+1+1) = 5c

2. Long scaled in (3+2) = 5c

3. Long scaled in (2+2+1) = 5c

4. Long scaled in (3+1+1) = 5c

Closed all positions for net profit = $321.50
 
Stochastic showed price divergence since 3 AM. On this basis, I took the shorts, every time price increased but stochastic lowered, until my position was profitable and price reached support at ES 1280.

Short 1+1+1+1+1 = 5c
Closed for net profit = $152.50
 
Comatose trade --
I have no idea how this trade happened but by accident I clicked somewhere on the price ladder and ended up short 3 contracts, while I was posting the last closed trade. Next thing I noticed is that I am 3 ticks in profit.... WOW!!!!

Short 3 contracts
Closed for a net profit = $102.00

Better be careful next time, it could have just as easily worked against me...
 
QUOTE]Quote from goodday:

Stochastic showed price divergence since 3 AM. On this basis, I took the shorts, every time price increased but stochastic lowered, until my position was profitable and price reached support at ES 1280.
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I was reading my above post and realized the mistake I made. I said ES support at 1280. What I really meant was 1278. This is THE PRICE WHERE I LIQUIDATED most of my shorts. SOrry for the mistake.
 
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