Risk Management is the answer

[volpri]

Where were the SL's in those two trades? In first trade a min SL is 1 or 2 ticks below that bar 12:25 (first entry short) and max 2 points below the lowest low in that TR at the far left of the range which would be 4955.

The SL for the second long trade is even further down. more like 4952.

So upside down on the initial R:R. But look at tat second trade. actual risks was small as adverse move was small then it went promptly in my direction. So good R:R

In the first trade bad initial R:R but scaling in allowed me to get out with a profit anyway. That is why I average down. It is essential to successful scalping, at least in my mind.

As a scalper I take what the market gives me as it probes up and down I will usually exit on any move that is back towards the middle of the TR and that is in my favor. It matters not that it goes further. I can always trade again. Many opportunities in a session. I prefer locking in profits as I get them. I may at time exit my position but leave a runner on but most of the time I am just grabbing any 1 to 8 point profit as the market hands them to me.

 

[volpri]

it is likely getting too late in the session to look for a BO. Could happen but doubtful. I may make one more TR trade. Just have to see.

 

[murray t turtle]

Risk management with stops is the public policy, but is there another way?

One famous trend follower mentioned he only bought when others began to think about selling, above the market where the momentum would be greatest for the lowest risk.....

I wonder what he was referring to?

%%
SOUNDS like a very, very specific market.
Like Larry Mint Hite says ''you want a very cheap buggy whip co ??LOL'' They went lower + lower for good reasons. .......
Even RE, such a good long term track record or that.
Rent controlled NYSE, RE, selling 50% + lower on dollar, more foreclosures Bloomberg Article, Wealth section, FEB 4,2024.
MOST metals dealers dont use stops, but deal skillfully, very specific market.

 

[volpri]

Well we did get a BO but late in the session. Can happen! I took one more long trade 2 points. Finished for the day. R:R was good on this one. It might have gone 2 ticks against me before going in my favor to profit.

 

[volpri]

And here is how the sessions ends. More or less.

 

[volpri]

BTW the INITIAL SL lost on that last trade is just below bar 14:45 two bars back from my entry bar. Another option is below the low of bar 14:35. The ACTUAL SL ...I should say ACTUAL RISK was around 3 ticks. 2 ticks plus 1 tick for exiting with a loss.

So, 3 ticks for 8 ticks profit.

This is what I call manual HFT's LOL. The money is not made in BIG moves but in position size and what I call FOT Frequency of Trades). ES offers 10 to 40 such trades per session. If one is willing to trade what pundits call "noise" or chop. I just don't believe in noise. I think there is only movement and I remove the concept from my mind that some of that movement is noise.

There was a lot of money to be made in this, all session long, sideways move.

 

[ironchef]

The reason scalping often requieres a wider PA stop loss as opposed to a tight monetary SL is because no one can actually say where the market will go. We are dealing with probabilities and possibilities in scalping. There are too many variables..some known.. and some unknowable. Therefore, certainty is fleeting. A wider PA SL gives one's trades a "chance" of working. A tight one will bleed your account to death.

So why even have a SL? Well you have to protect yourself from an even or a move you thought was improbable but became reality.

So, what do I do when price is approaching my wider SL? I see that my premise for entering the trade was wrong. I have to exit! Then if price continues against my position that I had (like in a reversal or BO) then I jump back in with double or even triple my previous size as I must get in sync with the market pressures.

Why double or triple my previous losing size? Well I want to get back my loss as quickly as possible and not spend the rest of the session trying to get back to break even. On momentum I can get back the loss quickly and soon be printing money.

Do I ever get whipsawed doing such a thing? Yes, sometimes occasionally I do. But if it happens two or 3 times in a row I just likely need to shut down the computer for the day as I am not reading the market correctly, for one reason or the other.

If I lose and keep losing I just need to go fishing.

I didn't understand this before, now I do. Thanks.

 

[Wide Tailz]

%%
SOUNDS like a very, very specific market.
Like Larry Mint Hite says ''you want a very cheap buggy whip co ??LOL'' They went lower + lower for good reasons. .......
Even RE, such a good long term track record or that.
Rent controlled NYSE, RE, selling 50% + lower on dollar, more foreclosures Bloomberg Article, Wealth section, FEB 4,2024.
MOST metals dealers dont use stops, but deal skillfully, very specific market.

That was cattle futures, which has been screaming lately. Check out the move out of the base on DWAC recently. Another case when the rocket motor went off, and you just get in when you can!

 

[Wide Tailz]

And here is how the sessions ends. More or less.

Thank you for sharing your insights.

 

[Wide Tailz]

Thank you.

Life is precious. Too often we take things for granted, don't appreciate what we have until it is too late.

Life is a huge blessing, moreso with a harmonous family and / or spouse. I'm sure I already expressed my opinion enough here. Just wanted to let you know we all feel this too. Worst kind of loss.