Which makes little sense because as the position builds, the point on the chart becomes irrelevant if your stop is based on your 2% rule.
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Which makes little sense because as the position builds, the point on the chart becomes irrelevant if your stop is based on your 2% rule.
10:30 reversal anyone ?
Quote from volente_00:
How about the natural gas trader who lost 5 billion last week by averaging into natural gas ?
You're being purposefully obtuse vol00.
Thank you for the intelligent and insightful dialogue on the exact methodology which should be used to average into intra-day trading positions, should one choose to do so B1S2.
You have given the exact criteria required to do so in an intelligent and completely professional manner.
However, at the end of the day, I'm not 100% sure as to who would win this race, the intra-day trader who averages into positions using position sizing correctly, cutting their losses when X% of their total portfolio has been breached, or the intra-day trader who, using that 2k - 3k performance bond, manages their positions aggressively, pyramiding on their wins, and cutting their losses quickly and effectively, waiting for the next setup whenever it should occur ... there are many traders on the board who follow (and actively advocate) the latter style of trading, and I am certain that they are not all incorrect.
Best Regards,
Jimmy Jam
No I am showing that if pro traders can't make averaging work, then how do you expect retail to ?
Lots of "pros" who totally screw-up, so that is not a correct analogy. Your comparing good retail traders to crazy "pro" traders who violate every single protocol, of their job AND of trading.
For the record, I am sure that if I read through B1S2's prolific and profitable threads I would see examples of him consistently averaging successful on his trades, and I was reviewing romik's divergence thread in relation to this topic, and he seems to have a good handle on it, but they [the traders who can do it, and do it well] are few and far between. Most lose their cool, and either puke their positions when they experience too much adverse price action ... or go loopy like many of these traders that we hear of, losing millions.
Best Regards,
JJ
Without question , a trader using the close stop and using high leverage can be successful. The problem though is that most traders get married to their position and are not nimble enough to trade that actively. So, the first style is better suited to most traders. It is my perception that this is the point that Romik is making and I agree totally. Most intraday high leverage traders fail.
To me getting married to the position means not admitting you were wrong and averaging into it until you are. I will not hesistate to take a stop out. It is just part of doing business.
B1S2, correct me if I am wrong but you are trading ES with zero margin correct ?
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