So doesn't using "tight stops" necessitate

[IronFist]

Quote from YMdesk:

long 41 and 55

Dude this isn't a live call thread

 

[YMdesk]

tough one end of day

 

[YMdesk]

you know what I've done this for a long long time I'm positive 28k for today I can see you have no interest in learning a thing your very typical of ET members good luck wise guy! My posting is over I'll go back to watching you evolve

 

[Compulsive]

Quote from IronFist:

Ok here are my two and only trades (both losers) today......By that logic, it is impossible to know in real time that 3 points was the optimal place at which to exit that trade.

Remember when I had shared with you to use the 2-1 approach

http://elitetrader.com/vb/showthread.php?s=&postid=2135428#post2135428

Imagine if you were of actually used it.....then you would have not ended up as a loss...try it next time....

 

[IronFist]

Quote from YMdesk:

you know what I've done this for a long long time I'm positive 28k for today I can see you have no interest in learning a thing your very typical of ET members good luck wise guy! My posting is over I'll go back to watching you evolve

Thanks for contributing to my thread. You're right I must not be open to learning since I ignored the myriad of statistically measurable and quantifiable information present in your posts. You should market your system. It's pure genius. Cheers.

 

[IronFist]

Quote from Compulsive:

Remember when I had shared with you to use the 2-1 approach

http://elitetrader.com/vb/showthread.php?s=&postid=2135428#post2135428

Imagine if you were of actually used it.....then you would have not ended up as a loss...try it next time....

Quote from me in this thread
As for the 2-1 system or whatever, my futures trading account only has about $10k in it and I don't have the intestinal fortitude to handle drawdowns with TWO contracts. In other words, say my stop is 3.25 points. With 2 contracts, that would be $130 per losing trade, which means that if my first three trades on my first day were losers, I would be down nearly 4% of my account in one day. Aren't you supposed to stop if you get down 6% in one month? I would be 2/3 of the way there in one day (likely in under 2 hours). Forget that. I can only trade 1 contract right now therefore my wins have to statistically beat out my losses and my losses cannot be large and/or frequent.

Sorry dude, I can't take the risk of losing such a high percentage of my account value in such a short time.

Plus, for every loss of x ticks with 2 contracts, it would take a win of > x ticks using the 2-1 method. So my winners HAVE to be greater than my losers just to break even.

 

[Compulsive]

Quote from IronFist:

Sorry dude, I can't take the risk of losing such a high percentage of my account value in such a short time.

Question for you..be honest...the trades that you have taken...out of 100 or 50 or 10..how many of them did you SEE where there was some profit $50, $80 or $100??

 

[steve0617]

Since your account cannot handle more than one contract at a time, what about calculating the rough equivalent DIA shares and trade that, cutting it in half for each close out? You could still use the YM for your charts but the DIA would be your trading vehicle.

It's not perfect of course, but it could give you what you want of having two exists per entry.

But if your system doesn't work with two exits anyway, then this obviously won't help.

When I first started many years ago, I traded the QQQ (back when it was three letters) but watched the NQ charts. Worked fine. A bit sloppy sure, but a good trend is a good trend.

 

[IronFist]

Quote from steve0617:

Since your account cannot handle more than one contract at a time, what about calculating the rough equivalent DIA shares and trade that, cutting it in half for each close out? You could still use the YM for your charts but the DIA would be your trading vehicle.

I hate stock taxes and don't want to deal with wash sales and PDT rules and stuff.

I have thought about doing what you said, however.

I wish there was like a mini e-mini

 

[IronFist]

Quote from Compulsive:

Question for you..be honest...the trades that you have taken...out of 100 or 50 or 10..how many of them did you SEE where there was some profit $50, $80 or $100??

Some of them have had some profit before reversing, but probably not over $50.

I will have to go back and review my backtesting data (all in spreadsheets) and see. Some of those losses were 20+ ticks tho and I'm hesitant to hold TWO contracts through that (that's $400 on the YM which is what I ran my backtests on). Remember tho that that strategy was designed to hold everything until the trend changed, and so a 20 tick loss with two contracts would throw off my proportion of winners if I was taking one contract off the table early for winners... if that makes sense. In other words, I NEED huge winners of equal contract size to the losers. I suspect that 2-1 trading this way would require double-sized winners to out balance the losers. In other words, the occasional winner of 50+ ticks would no longer be enough because by that point I would have taken 1 contract off the table.

I'll get back to you.