Rule of 10 Journal

Quote from Pekelo:

I think it is actually a good idea having 2-3 people running 2-3 different versions, how they understand and apply their rules during the same timeperiod. Then we can compare which one was more effective, profitable,etc.

Covering now would give a 5-6 pts win and with the previous 3 pts loss it is still profitable for today...
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Damn, you folks have me confused now. I trade this fading 10 point moves off of reaction lows or highs. I don't know how to make it any simpler. Hint, 50% retracements within the 10 point move are your friend. This 10 point target that jag is doing is probably going to put his win rate around 20%. I hope he keeps stats on how far profitable the trade went pointwise before he gets stopped out. This will show why scaling out is such an important concept in this style of trading.

PS. RULE OF 10 DOES NOT WORK !

If it did then we would be lower than 1281.5 right now.





:p
 
Quote from trader_arb:

Its not about being right, its about cutting losses when you are wrong (and you will be - its unavoidable). I'm going to assume Volente doesn't post his trades because any combination of these factors:

1. its tedious
2. little benefit
3. people bitch and don't believe you anyway
4. 90% of this strategy is money management ie stops, targets, and scaling which will vary from trader to trader (Volente's favorite book is Trading in the zone)

-Correct me if I am wrong, Thanks
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#5. Posting the "why " is more beneficial than posting the action.


Actually my favorite book is The Disciplined Trader, followed by Pitbull.
 
Quote from volente_00:

#5. Posting the "why " is more beneficial than posting the action.


Actually my favorite book is The Disciplined Trader, followed by Pitbull.
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The action helps clarify the "why"
 
Quote from jagmot:

Thank you Pek for contributing. I am not misunderstanding the r10 rule. I am of the belief that you need a minimum of 3 to 1 rr in order to be profitable over the long term (if you do not employ any money management), that is where I got the 10 point target.

Since I am using 3pt stop and using .25 for average slippage and commission, we need a minimum target of 9.75, and I just rounded to 10 to keep it simple.
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You only need 3 to 1 if you lose more than you win. Get your average to .75 and 1 to 1 will set you free.
 
Tortoise...


Try this for money management.....stop for the day when you achieve a profit in any amount...so you would be done for today....and come back to take the signals tomorrow....

That simple "magical" rule will do wonders to your account as it prevents overtrading the system. Overtrading is the killer of daytraders.

caveat: you need at least a 50/50 system for this rule to work effectively.
 
Quote from monti1a:

Tortoise...


Try this for money management.....stop for the day when you achieve a profit in any amount...so you would be done for today....and come back to take the signals tomorrow....

That simple "magical" rule will do wonders to your account.
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If you apply that same simple concept to rule of 10 trades then the end result gets even better as your winning precentage climbs. Of of the most important rules in trading is never let a win turn into a loss.
 
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