Systems Trader turned discretionary
- Thread starter ElectricSavant
- Start date
You worked out the number? Please explain? I occasionally arb...but mostly scalp. I cannot go into detail as to my methods, but the point is to report that if you want to goose you system...then why not use your system itself for data...
It is possible to be a systems trader and supplement your results with scalps or discretionary trades....
Michael B.
It is possible to be a systems trader and supplement your results with scalps or discretionary trades....
Michael B.
Here is an example of what I am talking about:
You have your basket of interest positive pairs that you scan. Your system looks for entries and larger targets and uses a trade management method averaging down/up. In this method you do not use stop losses as you want to collect that interest but hold a reasonable unrealized P/L during the carry.
Then you notice on most of your entries the trade goes against you....he he...isn't that always the case! You decide that your entry method, of your loose system, has nothing to do with precision as the charts always tell you that after you enter.
So here is where short, short scalp trades come into the picture...When your scanning for your long term loose, system entries, you can enter as usual, but use your scalping signals as entry points instead of the usual non-precision entries. For years I have read here use lower timeframes to enter with....
So you really have not deviated from your system, however the fearless entries of the scalp trades due to the interest positive carry, make the discretion of entry painless...As a bonus there may be several opportunities to grab small pips while you are trying to put on the carry posistion...and when you finally get it, you have fortified youtr balance thus your money management gives you a few more units than you otherwise would have had to enter in with. Your long term entry prices do not suffer either...
A part of me wants the scalp entry to work, while another part of me wants the scalp entry to fail and the larger scaling of the carry system to grab a hold of the trade and pay me some interest.
Today is Friday and I need to put on one more position for the carry over the weekend and into the holiday week next week. I am in a scalp trade on the EUR/CHF as I write...and if the scalp target hits...then I got to try and figure out how to get back in long again...I think there will be several opportunities before the spread widening that my marketmeker does for the weekend.
Michael B.
You have your basket of interest positive pairs that you scan. Your system looks for entries and larger targets and uses a trade management method averaging down/up. In this method you do not use stop losses as you want to collect that interest but hold a reasonable unrealized P/L during the carry.
Then you notice on most of your entries the trade goes against you....he he...isn't that always the case! You decide that your entry method, of your loose system, has nothing to do with precision as the charts always tell you that after you enter.
So here is where short, short scalp trades come into the picture...When your scanning for your long term loose, system entries, you can enter as usual, but use your scalping signals as entry points instead of the usual non-precision entries. For years I have read here use lower timeframes to enter with....
So you really have not deviated from your system, however the fearless entries of the scalp trades due to the interest positive carry, make the discretion of entry painless...As a bonus there may be several opportunities to grab small pips while you are trying to put on the carry posistion...and when you finally get it, you have fortified youtr balance thus your money management gives you a few more units than you otherwise would have had to enter in with. Your long term entry prices do not suffer either...
A part of me wants the scalp entry to work, while another part of me wants the scalp entry to fail and the larger scaling of the carry system to grab a hold of the trade and pay me some interest.
Today is Friday and I need to put on one more position for the carry over the weekend and into the holiday week next week. I am in a scalp trade on the EUR/CHF as I write...and if the scalp target hits...then I got to try and figure out how to get back in long again...I think there will be several opportunities before the spread widening that my marketmeker does for the weekend.
Michael B.
I am mixing around terms here:
I use all that I can to get that slight edge...(My scalp just hit...damn yeah.... I am happy ...now what do I do! I got to get in for the weekend and next weeks holiday carry!!!...I hope I get a dip in the EUR/CHF...cause the long term system says its a long here...)
Michael B.
- Discretionary
- Scalping
- Long-Term
- Short-term
- Money Management
- Trade Management
I use all that I can to get that slight edge...(My scalp just hit...damn yeah.... I am happy ...now what do I do! I got to get in for the weekend and next weeks holiday carry!!!...I hope I get a dip in the EUR/CHF...cause the long term system says its a long here...)
Michael B.
You see...I have removed the sting of small pip scalps...cause as you know you get 98% winners and that one loss gets you right back to where you started...
I know this will ruffle you feathers...but I do not care about the scalp statistics in the above paragraph! Cause if I could get just one failed scalp to stick on the loosing side...I would simply widen the targets and continue the "add to" event, while collecting interest...but in the long term system methodology...It eventually comes back, cause they are currencies and not equities.
Learning accelerations and cycles is strongly recommended to understand the discretionary side of forex trading...Use you correlation tables and ranges to understand where you are in the global scheme of things, that the beautiful world of Forex brings
Have a nice weekend everybody and enjoy your holidays next week...When you get back ....Good Trading to you!
Michael B.
P.S. I just went out last night and purchased two LCD Samsung 19" 970 P from Comp USA...I got em' for $489.50 each...prolly I could get them cheaper on the internet, but haven't checked...I have two 21" Sony CRT's and if you PM quickly you can have them for free, if you live in Denver...
I am going to get me a dual core Athlon soon...I just keep reading about them and nothing but good things are coming out of that company...Intel better watch out...I got my monitors first then power will follow baby...this is trading and your screens are very important, and most computers can handle your flow...But you got to spend some money now and then to realize your gains..Wifey says if you don't spend some of it...what good is it?
I know this will ruffle you feathers...but I do not care about the scalp statistics in the above paragraph! Cause if I could get just one failed scalp to stick on the loosing side...I would simply widen the targets and continue the "add to" event, while collecting interest...but in the long term system methodology...It eventually comes back, cause they are currencies and not equities.
Learning accelerations and cycles is strongly recommended to understand the discretionary side of forex trading...Use you correlation tables and ranges to understand where you are in the global scheme of things, that the beautiful world of Forex brings
Have a nice weekend everybody and enjoy your holidays next week...When you get back ....Good Trading to you!
Michael B.
P.S. I just went out last night and purchased two LCD Samsung 19" 970 P from Comp USA...I got em' for $489.50 each...prolly I could get them cheaper on the internet, but haven't checked...I have two 21" Sony CRT's and if you PM quickly you can have them for free, if you live in Denver...
I am going to get me a dual core Athlon soon...I just keep reading about them and nothing but good things are coming out of that company...Intel better watch out...I got my monitors first then power will follow baby...this is trading and your screens are very important, and most computers can handle your flow...But you got to spend some money now and then to realize your gains..Wifey says if you don't spend some of it...what good is it?
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