S/R Emini Journal

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Quote from m4a1:

for #2 i think it depends on how your trades usually work out. if your trades tend to go against you at first and then goes in your direction, what you're doing works great. but if most of the good trades go in your direction right away, then you will have small size on the great trades, and large size on the not so great trades.
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I agree. It's up to you to work out probabilities of every trade you make. Probabilities will command reducing/increasing position size, it's common sense. If you ask Gary he does double positions when he feels confident of the outcome. It's like driving in bad weather conditions, will you drive 70MPH or would you reduce speed?
 
Quote from Patricio:

Well I wouldn't comment on this unless I had the experience. Although you know nothing about who I am, what I have said has value to the majority of traders and is the consensus of successful professional traders. If your ego cannot except my comments thats your problem not mine. You just keep hanging on until your losers turn into winners and give yourself a big pat on the back.
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There is no point losing your nerve here. What you mention about the professional consensus is total 100% misleading information, show me where you got that info, please.
 
Quote from romik:

Let's get one thing straight, we have 3 basic types of averaging:

1) average down
2) scale in
3) scale out

All can offer value to a person that knows when to apply them and when not. I have seen all three in use by others, I use 2 of these methods from time to time and have no issues with other traders that do not use them at all. The only thing that gets me is when you get posters with minimum trading experience saying that certain technique does not work, based on what exactly? or the likes of TQ who has NEVER (as far as I know) called a singe real-time trade, giving it large to others about how not to trade or some other BS. Risk management, position size management and PF determine whether it works or doesn't work for me, not anyone else, unless they DO actually offer value in their posts.
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What anyone else says about the market is actually irrelevant. Except where the comments may get you into thinking about what was said and testing it by your own market observation.

Your system stats will either confirm or deny the validity of any strategy.

Whatever works is what you should do. Personally, I have never got scaling in to work for me on an intraday basis. Here's the reason why. Quite often if a trade works it will take off straight away without providing you the opportunity to load more contracts. Yet, if the trade doesn't work you will always have added more contracts. So, the position size becomes unequal.

I have tested this according to the way I trade the ES and have never got it to work for me. But, if it works for you, good luck to you.

Cheers.
 
Quote from Patricio:

I use a automated 1 point stop loss so I need a precise entry, anything less detailed than 1 min charts could stop me out with my scalping method. Pivot points aren't my only tool, I just watch them in relation to my system, as I do channel breakouts and fib retracements. I guess I fit the tool to the situation. :)
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I understand now why you oppose averaging down, but that doesn't mean it's bad practise now does it? I can find lots of negative commentary regarding using 1 point stops on ES, it doesn't mean it applies to you though, IF you make it work.
 
Quote from LondonUSTrader:

What anyone else says about the market is actually irrelevant. Except where the comments may get you into thinking about what was said and testing it by your own market observation.

Your system stats will either confirm or deny the validity of any strategy.

Whatever works is what you should do. Personally, I have never got scaling in to work for me on an intraday basis. Here's the reason why. Quite often if a trade works it will take off straight away without providing you the opportunity to load more contracts. Yet, if the trade doesn't work you will always have added more contracts. So, the position size becomes unequal.

I have tested this according to the way I trade the ES and have never got it to work for me. But, if it works for you, good luck to you.

Cheers.
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I do use scaling out (better than a trailing stop IMO) and do average down. I don't scale in.
 
Quote from romik:

There is no point losing your nerve here. What you mention about the professional consensus is total 100% misleading information, show me where you got that info, please.
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http://www.dtguide.com/forex/How_To...ng_Strategy_Ever_That_You_Might_Be_Using.html
http://www.esignalcentral.com/exchange/v19_01/trading_education.asp
http://stocks.about.com/b/a/141676.htm
http://www.decisionpoint.com/TAcourse/TradeMistakes.html
http://www.trade2win.com/knowledge/articles/general_articles/simple-rules-of-trading/

Shall I go on?
This is advice for mere mortal traders, like I keep saying. :)
 
Quote from Patricio:

http://www.dtguide.com/forex/How_To...ng_Strategy_Ever_That_You_Might_Be_Using.html

he is referring to not having a stop loss in place and averaging down, I think I did mention a stop.

http://www.esignalcentral.com/exchange/v19_01/trading_education.asp

"But wouldn't it be nice to average the trade down without adding any additional risk to the position?" - I did not increase risk by averaging down.

http://stocks.about.com/b/a/141676.htm

Again, he refers to averaging down and not having a definite stop in place, escalating downside. I did/do have a stop.

http://www.decisionpoint.com/TAcourse/TradeMistakes.html

He also says that unless one has $50k, he should not be trading. Again, he does not mention having or not having a stop in place, he simply says - DON'T DO IT. I would love to put him side by side with a trader who does it all the time. It will be an interesting debate, where PnL will speak for itself and theory will fly out the window.

http://www.trade2win.com/knowledge/articles/general_articles/simple-rules-of-trading/

Again and again he refers to NOT HAVING DEFINITE STOPS IN PLACE. He refers to Nick Leeson type blow outs - uncontrolled risk.

Shall I go on?
This is advice for mere mortal traders, like I keep saying. :)
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Have a look at my divergence journal's current PnL, real-time calls with stops, targets and yes, averaging down on most to pin down reversal.

http://www.elitetrader.com/vb/showthread.php?s=&threadid=72117&perpage=6&pagenumber=26

Perhaps you are right, this type of trading is not for majority, as majority simply can not afford the word drawdown due to under-capitalisation issues. I recently posted a swing short trade, which was averaged down. It did result being a loser, as max risk per position kicked in. Prior to that trade I had a winning swing trade, which was averaged down all the way. There is no right or wrong as long as one can say - ENOUGH :)
 
Quote from Patricio:

...I am not disagreeing with you but I am pointing out there is more than one way to skin a cat and not everyone here trades the same way.
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Fair commentary
 
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