S/R Emini Journal

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Quote from romik:

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Come on now Romik, this method is not an advocated trading method for the general trader on these boards. I can find a thousand more threads recommending not doing it under any circumstance, nobody teaches this method that I know of. If you cannot admit that well you are not the man I thought you were.

Edit: Ok, I take that back, I see you sort of agree in your previous posts
 
Quote from Patricio:

Come on now Romik, this method is not an advocated trading method for the general trader on these boards. I can find a thousand more threads recommending not doing it under any circumstance, nobody teaches this method that I know of. If you cannot admit that well you are not the man I thought you were.
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Is there anyone on this board that understands what I am saying, because Patricio just does not get it for some reason. In that case you should remove stops all together P and close position if it goes against you by .25 point, why do you stay in a losing trade until 1 point down?

When you enter small position size with a wide stop, when you average down you stop gets tighter until the time your max loss is reached, be it 100 points or .25 point.

OK. it's not for majority, but the same can be said for 1 point stops.
 
different strokes for different folks............to me there is a fine line between averaging down & scaling a position....bottom line.
i know what it is you are saying,romy.....as well as joeyata.
your stop is your stop..........you`re not going to wait for the next support/resist level to be hit to lay out some more.

scaling works for me because it eliminates the need to be exactly right..........especially on es & ym.it really depends on the individuals comfort level..........i`ve had many resting buy limits that were never hit & missed by a tick or two before it took off.

Patricio....what did you think of Buzzy Schwartz as a trader??
arguably one of the best S&P traders ever.....he developed a style that fit his personality like an isotoner glove.......one of his trade mark entries on a trade was to set a scale of .10`s when the market was approaching a S/R zone,intending to catch most of the scale before the market reversed.........was he an inadequate trader because he exercised this technique??
that is exactly what we`re talking about here...........for anyone here to step up & say this or that is wrong is a joke..........books & internet quotes don`t cut it in the real world & are much too rigid to live your trading life by........if it does`nt work for you,don`t use it but don`t tell others it`s wrong......i think trading the Es on a one point stop for every trade is ridiculous & way too rigid for a volitale index..............but if that`s what makes you comfortable trading..........by all means keep getting stop.........i mean keep using it if it works for you.
 
Hey Romik,

This method is not for everyone but my father in law has been trading for over 30 years and this is his method. He does not use stops. What he does is averages down and when he knows he is in trouble he will start trading the other indexes. If he is averaging down on the ES and in trouble he will sell ER2, YM, or NQ. He will only use the other indexes when there is a trend day against him. If not he will average in on the index he is trading.

Is it the best method probably not but it sure works for him. The one thing he never does is trade in the middle of the range when averaging up/down. One more thing when averaging down he doesn't trade the same quantity he bumps the quantity. On days he gets caught and has to trade his way out of a position his commisions are $800-$1000 but some how he trades his way out of it.

One more thing that is interesting is he has held a long position in the ES for over three years. He has hedge, averaged in, takes profits and has rolled it. There have been time where he has sold his position out and bought it back a couple days later (rollover) but has remained long for over three years.

I don't trade this way but find it interesting that he does and is very successful at it.


Quote from romik:

Is there anyone on this board that understands what I am saying, because Patricio just does not get it for some reason. In that case you should remove stops all together P and close position if it goes against you by .25 point, why do you stay in a losing trade until 1 point down?

When you enter small position size with a wide stop, when you average down you stop gets tighter until the time your max loss is reached, be it 100 points or .25 point.

OK. it's not for majority, but the same can be said for 1 point stops.
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Quote from Spooz Top:


Patricio....what did you think of Buzzy Schwartz as a trader??
arguably one of the best S&P traders ever.....he developed a style that fit his personality like an isotoner glove.......one of his trade mark entries on a trade was to set a scale of .10`s when the market was approaching a S/R zone,intending to catch most of the scale before the market reversed.........was he an inadequate trader because he exercised this technique??
that is exactly what we`re talking about here...........for anyone here to step up & say this or that is wrong is a joke..........books & internet quotes don`t cut it in the real world & are much too rigid to live your trading life by........if it does`nt work for you,don`t use it but don`t tell others it`s wrong......i think trading the Es on a one point stop for every trade is ridiculous & way too rigid for a volitale index..............but if that`s what makes you comfortable trading..........by all means keep getting stop.........i mean keep using it if it works for you.
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All I know about Buzzy is his famous quote: "Every trader wants to short the high, cover the low, and do it three times as large."

Look, I am not trying to get in a slinging match here, I was pointing out the reality of trading for most people, not one guy who "made it" doing it his way. Holding losers is not a good idea, I do not see the logic in having a 5 point loser, adding to it and holding it over night. Ok, I could "maybe" understand it if he bought it close to support (not 5.75 points, which is 50% of an average daily move) and he felt so good about it he adds to the position after bouncing off support, but to add to a loser so close to his stop sounds a little crazy. Sorry Romik, but thats how it looks from here. The other point is you are sat on a loser half the day, missing out on other possible trades.
 
Thank you Spooz, Dean80.

Patricio, if I were you (of course I will never be) I would not pay attention to what majority can/can't do, it's about following the minority who do make a living in trading. There are some wicked posters on ET that do use this method, B1S2, Marketsurfer, Rearden Metal (I think) to name a few.

As long as your max risk has not been reached, one can do what the hell he thinks is appropriate.

Dean80 your father in law is a multi-millionaire, right?
 
Quote from Patricio:

All I know about Buzzy is his famous quote: "Every trader wants to short the high, cover the low, and do it three times as large."

Look, I am not trying to get in a slinging match here, I was pointing out the reality of trading for most people, not one guy who "made it" doing it his way. Holding losers is not a good idea, I do not see the logic in having a 5 point loser, adding to it and holding it over night. Ok, I could "maybe" understand it if he bought it close to support (not 5.75 points, which is 50% of an average daily move) and he felt so good about it he adds to the position after bouncing off support, but to add to a loser so close to his stop sounds a little crazy. Sorry Romik, but thats how it looks from here. The other point is you are sat on a loser half the day, missing out on other possible trades.
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My current max stop is $7,800.00. Does that clarify this matter to you? Whether you think that it's a silly decision making or not is an irrelevant issue. Not your call. There are people out there sitting on 50 point drawdowns, perhaps even more. I don't know how to explain this to you.
 
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