Stop-loss: Trail or not?

imjohn said:
Manual, but I incorporated numerous reliability tests.

Process was labor intensive and took several months, but prior to trading I spent a decade in a highly analytical field, searching for needles in haystacks of data, so tons of screen time was nothing new.
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imjohn,

Thanks and I am data brain as well. I believe manual backtesting with starting with actual trading capital helps as well and commission fee per trade.
 
imjohn said:
Early on, I was shooting for 4:1 or 5:1. It did work, but the losing streaks (in low win rate systems) are just not for me. Plus, after losing 10 or 15 in a row, if I missed a winner for whatever reason, would have a meltdown.



Same. my current method is not the most profitable, but I can execute the strat with very few mistakes, it fits my personality and attention span, and I'm satisfied with the results. There's so many variables one can play with, but if they can't execute (and especially when volatility picks up like it did this morning), things will quickly fall apart.



I stop at 15:30 ET unless I'm in a trade, then I ride it out til completion. No new entries after 15:30. On Fed days, I close up at 13:30. I take any/all sigs. I don't care if I lose 3,4,5 or any amount in a row, in a single day or over multiple days. There's been days where I lose the first 3 or 4 and win the next 4 or 5. If it's valid, I'm in. 50% win rate and losing streaks are expected. Sometimes they occur in a single day, or over multiple days.

The other days I probably won't trade (or reduce to 1/2 size), is when the prior day RTH range, avg 3 day RTH range, and avg 5 day RTH range (for my instrument), all drop below a certain threshold. If the market isn't moving my win rate drops and I don't enjoy it.
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imjohn,

One question please?

1. What was two criterias/challenges that you had to overcome before being a consistent day trader? Technical or Personal or Learning?
 
SimpleMeLike said:
imjohn,

One question please?

1. What was two criterias/challenges that you had to overcome before being a consistent day trader? Technical or Personal or Learning?
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A bit off thread topic (sorry OP),

First was skipping valid trades. I'd skip because the setup looked like a loser, or because I won or lost 5 or 6 in a row and thinking, "the next one has to be a loser". The underlying reason was that I just hadn't done enough work to have confidence in what I was doing.

Second was impulsive trades. Jumping in the market randomly because I think it looks like it's about to do something, or because I haven't had a valid signal all day and just want to be in. (To me, looking at a screen without having a position gets boring fast.) The other times I took randoms was right after missing/skipping a winner. Mind becomes fixated, "I should be up 16 ticks right now, I need to make that back." So I jump in (often in the opposing direction to the skipped trade) hoping to close the profit gap.
 
Thank you imjohn for responding.

imjohn said:
The underlying reason was that I just hadn't done enough work to have confidence in what I was doing.
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Enough work meaning backtesting, review of trades win or less, reading books and learning, and practice? Validating profitability?
 
SimpleMeLike said:
Enough work meaning backtesting, review of trades win or less, reading books and learning, and practice? Validating profitability?
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Yes to testing (back/forward), after many 1000s of occurrences, what "works" for me became clear.

Never made it past a few pages (or a quick skim) of any trading book. Never practiced on sim either. Can't comment from experience on whether books or practice help.

My framework was built from a lot of ideas that came from reading ET. Credit to speedo (pullbacks, MA lines, modest wins/losses, multiple TFs). He's shared his methods again and again. Also ideas from older posters - 40yotrader, JustDoingIt, couple other handles I can't recall.
 
I mostly trade with normal orders, without any SL on screen. But if I use it, then I prefer a simple SL order against a Trailing one.
 
using modern belt fed ammo delivery systems it is possible to deliver several metric tonnes of bullets down the globalist throat on a typical breakout. any sort of fixed exit point would be impossible
 
Hello imjohn,

Thanks for the response and good conversation
imjohn said:
Yes to testing (back/forward), after many 1000s of occurrences, what "works" for me became clear.
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Yes, I am in the what "works" for me stage as well. There are many ways to take a setup, but knowing my what calms my mental, my worries, my comfortability after I place the trade, and exit is where I am at. And as you stated, does personal things are realized and controlled in backtesting and forward testing and recording notes after each trade on the thoughts of the trade.


My framework was built from a lot of ideas that came from reading ET. Credit to @speedo (pullbacks, MA lines, modest wins/losses, multiple TFs). He's shared his methods again and again.

Speedo has definitely help me, I enjoy his posts, and save them. Alot of ET members have helped me. I love the forum.

The one thing I have drilled in my head that I have learned from ET is "prove to yourself in backtest and forward test with real emotions that how I want to trade will be profitable over xxx to xxxx trades"

One of my favorite is this.

https://www.elitetrader.com/et/thre...ke-yearly-profits.337786/page-17#post-4964689
 
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