The Trouble With Scribbles

[samuel11]

I'm not sure, if I understood you, so are you saying that, if you trade longer time frame, then there are no liquidity issues? Whether you're using longer, or shorter time frame bars, when the time comes to place orders, everyone has to go through the same ladder.

Schaefer

Well, let’s take an example if you trade long time frame:

I want to buy at 4400 and my target is 4500. Please correct me if that range is too large, but I think it is reasonable for a trade lasting a few days.

When price reaches that level, are you telling me that it is a big deal if the average fill he gets is 4405? Or 4395?

I know the US indices futures market, and I don’t really think that whenever DB decides he wants to buy, he moves the market that much.

I also don’t think that the market immediately moves in his direction, hence he could also get better fills.

That being said, I cannot really envision how one individual who is targeting decently large profit targets in long time frames could possibly complain about liquidity in one of the major indices in one of the most developed financial markets in the world.

 

[Schaefer]

Well, let’s take an example if you trade long time frame:

I want to buy at 4400 and my target is 4500. Please correct me if that range is too large, but I think it is reasonable for a trade lasting a few days.

When price reaches that level, are you telling me that it is a big deal if the average fill he gets is 4405? Or 4395?...............

Every successful trader would tell you, that every tick is a big deal. Why? because no one knows, if the trade is going to go the way you've anticipated. Every tick you're away from your entry is a tick towards your stop loss.

Schaefer

 

[romik]

Every successful trader would tell you, that every tick is a big deal. Why? because no one knows, if the trade is going to go the way you've anticipated. Every tick you're away from your entry is a tick towards your stop loss.

Schaefer

I am sorry, but I disagree. Drawdowns are essential nuisances unfortunately, if your stop is 4 ticks, then sure you are feeling the heat, but when a stop is 200 ticks, then that 1 tick move against your entry makes no difference whatsoever.

 

[samuel11]

Every successful trader would tell you, that every tick is a big deal. Why? because no one knows, if the trade is going to go the way you've anticipated. Every tick you're away from your entry is a tick towards your stop loss.

Schaefer

So you are assuming that I am not a successful trader or that I do not know any?

What kind of legitimacy gives you the right to speak for every one of us?

I trade options, and I don’t really care if I am filled at 2.02 vs 2.1 because that is part of trading! You can never guarantee a fill.

How is one tick relevant when you target 100 points? That’s your excuse for liquidity?

If DB was going for 10 points, I would understand. But you said long time frames...

 

[Redneck]

Drawdowns are essential

Speaking strictly from a manual trader's perspective

Draw downs are not essential... nor necessary

==================

Traders are risk managers first and foremost

Losing trades do happen - simply a part of normal trading


Draw downs happen;

When a loser/ series of losers allowed to increase beyond an acceptable level of one's net account

or/ and

When the trader has not kept pace with the mkt/ price evolving - and now finds himself / herself in a constant fight / struggle with same

==========================

Draw downs are a manifestation of one's ego

Losing trades are simply business as usual



Or not - tis a choice

RN

 

[romik]

I think we look at drawdowns differently, I look at a drawdown as a reduction of one's trading capital after a series of consecutive losing trades.

 

[Schaefer]

I am sorry, but I disagree. Drawdowns are essential nuisances unfortunately, if your stop is 4 ticks, then sure you are feeling the heat, but when a stop is 200 ticks, then that 1 tick move against your entry makes no difference whatsoever.

Yes, we agree to disagree here, and if that works for you, great.

I'm rooting for your experiment.

Schaefer

 

[romik]

Schaefer, although we disagree I sense you are a good person.

 

[Schaefer]

So you are assuming that I am not a successful trader or that I do not know any?

What kind of legitimacy gives you the right to speak for every one of us?

I trade options, and I don’t really care if I am filled at 2.02 vs 2.1 because that is part of trading! You can never guarantee a fill.

How is one tick relevant when you target 100 points? That’s your excuse for liquidity?

If DB was going for 10 points, I would understand. But you said long time frames...

Samuel, you misunderstood, it wasn't directed at you.

My definition of longer time frame would be different from yours, DB's, or anyone else. I don't trade options, so I've no idea what you guys think is a fair fill.

Schaefer

 

[k p]

Shafer... I just wanted to say that I enjoyed your posts over at TL while you were posting some of your charts. I liked reading your rationale, although it was difficult to figure out how you entered given that you were posting 15 min charts. But I still found your examples of trading behavior and reading charts to be excellent, and from what I remember, you appeared to be damn profitable and knew quite well what you were doing.