Stop Loss and Profit Areas Strategy : Money Management Skill Query

C

creatorofmatrix

Hello Everyone,

I am a PhD. in computer science and a big data professional. One year back I left my job to do trading. I have developed quite a successful model for entry but I am now struggling with Stop loss and Profit target areas identification. Although my model has an accuracy of around 80 percent but I am not able to yet identify or could able to learn the professional money management skills. Always in my trade I am in profit but as I am not able to develop a strategy for taking profits or stops often I make my huge wins into small losses and then after regrets. If anyone can suggest a good book or help me with some insights then please share.

Thank you!
 
creatorofmatrix said:
Hello Everyone,

I am a PhD. in computer science and a big data professional. One year back I left my job to do trading. I have developed quite a successful model for entry but I am now struggling with Stop loss and Profit target areas identification. Although my model has an accuracy of around 80 percent but I am not able to yet identify or could able to learn the professional money management skills. Always in my trade I am in profit but as I am not able to develop a strategy for taking profits or stops often I make my huge wins into small losses and then after regrets. If anyone can suggest a good book or help me with some insights then please share.

Thank you!
More...

You got a PhD? Maybe you should go to work for the Fed. All them guys struggle with recognizing things too! :)
 
creatorofmatrix said:
Hello Everyone,

I am a PhD. in computer science and a big data professional. One year back I left my job to do trading. I have developed quite a successful model for entry but I am now struggling with Stop loss and Profit target areas identification. Although my model has an accuracy of around 80 percent but I am not able to yet identify or could able to learn the professional money management skills. Always in my trade I am in profit but as I am not able to develop a strategy for taking profits or stops often I make my huge wins into small losses and then after regrets. If anyone can suggest a good book or help me with some insights then please share.

Thank you!
More...

LOL. How do you quantify an 80 percent accuracy metric without a clear profit/loss target? In your model how do you classify a winner?
 
creatorofmatrix said:
Hello Everyone,

I am a PhD. in computer science and a big data professional. One year back I left my job to do trading. I have developed quite a successful model for entry but I am now struggling with Stop loss and Profit target areas identification. Although my model has an accuracy of around 80 percent but I am not able to yet identify or could able to learn the professional money management skills. Always in my trade I am in profit but as I am not able to develop a strategy for taking profits or stops often I make my huge wins into small losses and then after regrets. If anyone can suggest a good book or help me with some insights then please share.

Thank you!
More...
%%
Mr Creator/m;
Invest in a private library or public library card /or both..
Wisdom is profitable to direct......................................................................:caution::caution::caution::caution::caution::caution:,:caution::caution::caution:
 
Scataphagos said:
Doesn't sound like a scammer to me... just a noob... looking for a way to "clear the fog". (Successful trading requires a specific skill set. Having a PhD in anything may or not be worth anything for the task.)
More...
I totally understand this thing but initally I wrote a different message describing my method in detail and the computer program I made. So I started it with PhD. and I am not able to edit this message now.

Yes my bad but I am a newbie and making constantly profits in the market in day trading. I just started trading 9 months back. Currently I just want to increase my edge. I have worked really hard on a statistical model in form of an indicator which I use to trade.
 
This is a simulation, right? And you have not accounted for slippage? I backtested one of my trading systems and used 118 trade examples. That was done manually, I had like an 80% win rate and returns was huge. Decided to put it to an actual test using real monies. I figured, it would still be profitable. Slippage was huge. Fills were horrible. That alone tanked the trading system which turned into a huge loser. Make believe trading does not work in the real world because you do not have the benefit of real time conditions. Add to that the benefit of hindsight which is 100%. When you are trading live, you do not know what will happen in the next say 3 days to your stock for instance, let alone what happens in 1 month, 3 months, 6 months out? Let us get real. There is no such thing as certainty in stock trading or investing. You have to place trades using whatever information you have and make split decisions, a huge number of times. Risk management matters more than anything else. Just my 2 cents.
 
trendmomentum said:
LOL. How do you quantify an 80 percent accuracy metric without a clear profit/loss target? In your model how do you classify a winner?
More...

Friend, I can only say that if you want to test my credential just tell me one script and time frame which you want to trade. I will give you entry point and prospective direction. You can test yourself. I have not registered here for fun. I want to learn and share knowledge.
 
smallfil said:
This is a simulation, right? And you have not accounted for slippage? I backtested one of my trading systems and used 118 trade examples. That was done manually, I had like an 80% win rate and returns was huge. Decided to put it to an actual test using real monies. I figured, it would still be profitable. Slippage was huge. Fills were horrible. That alone tanked the trading system which turned into a huge loser. Make believe trading does not work in the real world because you do not have the benefit of real time conditions. Add to that the benefit of hindsight which is 100%. When you are trading live, you do not know what will happen in the next say 3 days to your stock for instance, let alone what happens in 1 month, 3 months, 6 months out? Let us get real. There is no such thing as certainty in stock trading or investing. You have to place trades using whatever information you have and make split decisions, a huge number of times. Risk management matters more than anything else. Just my 2 cents.
More...

I know I am starving to learn and I did it right in terms of maths but there are operational issues in my system. I have also minted real monies with it. I am not able to find some resource from where I can get an idea of money management / risk management / position sizing and pyramiding kind of thing. If you can help me in these things by suggesting some book or resource. I will really appreciate.
 
You must log in or register to reply here.
Back
Top