The Aha moment occurs when you realize that Prudent Risk Management is not the only edge you have.
The "Aha" Moment!
- Thread starter Sweet Bobby
- Start date
The Aha moment occurs when you realize that Prudent Risk Management is not the only edge you have.
ROFLMAO PRM is not, I repeat IS NOT, EVEN AN EDGE. Has absolutely nothing to do with having an edge. ROFLMAO.
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ROFLMAO here we go again with that nonsense. What is your PRM? Buy 1 then sell two when you get stopped out on the first? This is just plain ridiculous.
B1S2 will never reach his AHA moment. He is too stubborn. He will reach only his fake AHA moments (thinking it is AHA, but in hindsight it appears to be not).
To reach your AHA moment you sometimes have to understand/admit you are wrong. And refusing that is for many the reason they fail, I think. This refusal blocks any new insights for the researcher. It might even be possible that starting again from scratch and do everything different is needed.
that's not an edge it's a given if you want to survive
I know it is not. I was speaking on the level of B1S2 so that he could understand and would not focus on "edge" but on "NOT". I tried to keep his posting intact as much as possible to show what 1 word difference can mean in trading.
The better the AHA the less you need a complicated Risk management system. My Risk management system is very simple: a hard stoploss and a "recovery mode system" to recovers fast from the loss.
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Forgive them---they know not what they do.
Prudent risk management is not an edge for traders, it's a means of limiting your drawdowns in regular market action and ensuring that "black swan" type events don't bankrupt you. It may be an "edge" for investors, but I'd hesitate to call it that.
The only edge for traders is identifying key inflection points as to some combination of timing of the reversal (or end of the pullback), and magnitude of expected move.
The only edge for traders is identifying key inflection points as to some combination of timing of the reversal (or end of the pullback), and magnitude of expected move.
What you're saying here makes sense if the market is in a nice smooth bull mode, over say a 1 - 2 year period. A bull market system sounds plausible.
On the other hand, a system that works in all phases, corrective and bear market, sounds less realistic. From a retail system perspective of course.
Intraday trading showes alot of good short too, no matter if we have smooth bull mode, over say a 1 - 2 year period. The last 10 years I went long and short and the shorts made good profits too. So this nice smooth bull mode, over say a 1 - 2 year period, has nbo importance for an intraday trader. I trade the intraday trend, and that trend is not all the time bullish. Depending on which period, my longs against shorts ratio goes roughly between 60%-40% to 40%-60%. So from 40% to 60% longs to 40% longs and 60% shorts. This proofs that my profits are not based on the longs from the last 10 years bull run.
Not less realistic, much more difficult to build. But not impossible.
I daytrade the ES, which might be an important detail. I think it is completely different story for daytrading stocks.