i.e. Still used that 5 pt trailing stop in the initial phase and thus kept the trade open
Pete's Place
- Thread starter PetaDollar
- Start date
i.e. Still used that 5 pt trailing stop in the initial phase and thus kept the trade open
Well my intraday trading has reached a new level of consistency: i've broken even two weeks in a row, and my largest winning days are bigger than my largest losing days.
I'm happy with my entries.
Now I really need to work on "taking what the market gives me". I should have raked it in this past week but left too much money on the table.
A couple of simple changes:
I will continue to use the 5 point trailing stop to breakeven as a safety, but I will try not to hit it as often.
I'm happy with my entries.
Now I really need to work on "taking what the market gives me". I should have raked it in this past week but left too much money on the table.
A couple of simple changes:
- The 11-min bar my trade is opened, and the following one, must be colored in the direction of my trade.
- Take profits on a stall in the 2-min chart, even if it hasn't reached my target
I will continue to use the 5 point trailing stop to breakeven as a safety, but I will try not to hit it as often.
I didn't trade today, I still need to finish working out the new rules.
Here's what i've worked out, to keep me out of trouble.
Initial Phase Procedure
The time from when the trade is opened to when price hits the first target.
1) Trail a five point stop until it gets to breakeven, then leave it there.
2) The 11-min bar the trade is opened, and the following one, must be colored in the direction of the trade.
a. If not, exit 1/2 immediately.
b. Seek a decent exit for the 2nd half, at worst it hits the stop.
3) Early profit taking - when there are clear signs it's turning around, but you haven't reached your first target. Valid signals:
a. A clearly opposite trend developed on the 2 min chart (HH, LL, etc.)
b. An oppositely colored bar on the 11 min chart
c. (more to be added)
Initial Phase Procedure
The time from when the trade is opened to when price hits the first target.
1) Trail a five point stop until it gets to breakeven, then leave it there.
2) The 11-min bar the trade is opened, and the following one, must be colored in the direction of the trade.
a. If not, exit 1/2 immediately.
b. Seek a decent exit for the 2nd half, at worst it hits the stop.
3) Early profit taking - when there are clear signs it's turning around, but you haven't reached your first target. Valid signals:
a. A clearly opposite trend developed on the 2 min chart (HH, LL, etc.)
b. An oppositely colored bar on the 11 min chart
c. (more to be added)
I had an awesome day today. It was stress free trading with the new initial phase rules. Finally I have it the right way around: big when I win, small when I lose, out/smaller if i'm not proven right, vice waiting to be wrong.
I enjoy having automatic plan/checklist once the trade is open, rather than stressing over what to do next. It's a much better way to trade for me. The thing that always killed me in the past is hanging onto losers, HOPING things would be OK.
I also have an addition to rule 3 (reasons to take profits before hitting profit target):
3. c. If there is a new low (high) in price but a much higher low (lower high) in the TICKS. The divergence should be CLEAR TO A BLIND MAN.
I enjoy having automatic plan/checklist once the trade is open, rather than stressing over what to do next. It's a much better way to trade for me. The thing that always killed me in the past is hanging onto losers, HOPING things would be OK.
I also have an addition to rule 3 (reasons to take profits before hitting profit target):
3. c. If there is a new low (high) in price but a much higher low (lower high) in the TICKS. The divergence should be CLEAR TO A BLIND MAN.
peterfigliozzi,
I've been looking at this "if not proven right" thing, and find that so far I cannot wrap parameters around it.
So If you can, could you share what you mean by "proven right"?
Can you be proven right, if your poss. goes against you by 1 tick?
2 ticks? with in a certain amount of time after entry?
If so, how far do you see it as between "not right" and Proven wrong?
Thanks
sulong
Pete... i just want to share my thoughts of your thread.
I looked the entire thing over.. and I still dont understand exactly what u do.. and I am sure that most readers agree with me.
You try to be clear and make things look simple.. but in reality its far from clear. I think thats why u are getting minimal ET contribution to your thread. You are trying to be mechanical yet discretionary.. and it seems as if u are changing your methods ever week or so.
But I think you should continue posting this thread because it seems to be helping you. I think the only benefit of this thread will really be of yours.
--MIKE
I looked the entire thing over.. and I still dont understand exactly what u do.. and I am sure that most readers agree with me.
You try to be clear and make things look simple.. but in reality its far from clear. I think thats why u are getting minimal ET contribution to your thread. You are trying to be mechanical yet discretionary.. and it seems as if u are changing your methods ever week or so.
But I think you should continue posting this thread because it seems to be helping you. I think the only benefit of this thread will really be of yours.
--MIKE
Notice I used the word "only."
Thats not how it necessarily should be.
The jist of it is, you can't cut all your losers ahead of your initial stop all the time, and you can't cash in on every entry that eventually turns out to be a winner without hitting your initial stop. If you try, you will pay by killing too many winners and hanging onto too many losers.
However, using the very simple "Initial phase" rules I put up, i'm doing the "good thing" most of the time (staying in winners and getting out of losers before hitting that stop).
How many ticks against? 10 in the NQ. I trail it to b/e.
What will work for you? You have made a bunch of trades in the past, some winners, some losers. Come up with something that allows most of your winners to "pass", and at the same time kills those losers a little earlier. Test your old trade entries with your rule. What % of winners "pass"? Losers cut?