Using different risk allowances for different time frames?

M

Metamega

So little about my trading style.

Right now I trade off daily charts, it fits my schedule and style. To be honest day trading doesn't have much interest to me. I find it hard to make sense of the charts and direction of the market. Maybe as I get some more trades under the belt it'd be something I'd put some focus but I'm quite contempt with my work on daily bars.

One idea I've contemplated is actually stepping back some of my trading to the weekly time frames.

Now my concerns are for the work involved and the holding period, should I bump the risk capitol for a weekly time frame?

Right now I risk 1% or less of my capitol depending on the setup on my daily time frame. With 252 trading days a year vs 52 bars on a Weekly, should I bump this up to make it worth the time and capitol?

I'm wondering if its a bad idea to mix and match this from anyone with some history. Maybe some of you trade intra-day with a similar approach to daily time frames?

Reason is I think it'd be a great way to make some of my money that's on the sidelines work a bit. The setup I trade most right now are pullbacks and these sometimes take 2-4 bars from my entry before I start having to manage it. What I mean is if they go sideways for 2-4 bars I start moving my stop up slowly each day and scratch the trade, or it starts working for me or against me and I have plans for both scenarios I follow.

So from a weekly time frame view , this could be 10-20 trading days before I see my setup follow through. I was thinking risking 2% instead of 1% might make more sense for the time/missed opportunities.

Right now after 6 months of live trading, I find myself comfortable with about 2-4 open trades on the daily frame. I'm not trying to win a marathon and it's just a sweet spot for my trading/ work schedule. I'm just very fussy with setups and it's been working better then when I first started and found myself forcing setups to be fully invested. Thinking maybe adding some weekly time frame setups to my portfolio may allow for a better blend.
 
Generally yes.

You want to decrease risk per trade with higher trade frequency (shorter time frames).

And increase risk per trade with lower trade frequency (longer time frames).
 
Metamega said:
So little about my trading style.

Right now I trade off daily charts, it fits my schedule and style. To be honest day trading doesn't have much interest to me. I find it hard to make sense of the charts and direction of the market. Maybe as I get some more trades under the belt it'd be something I'd put some focus but I'm quite contempt with my work on daily bars.

One idea I've contemplated is actually stepping back some of my trading to the weekly time frames.

Now my concerns are for the work involved and the holding period, should I bump the risk capitol for a weekly time frame?

Right now I risk 1% or less of my capitol depending on the setup on my daily time frame. With 252 trading days a year vs 52 bars on a Weekly, should I bump this up to make it worth the time and capitol?

I'm wondering if its a bad idea to mix and match this from anyone with some history. Maybe some of you trade intra-day with a similar approach to daily time frames?

Reason is I think it'd be a great way to make some of my money that's on the sidelines work a bit. The setup I trade most right now are pullbacks and these sometimes take 2-4 bars from my entry before I start having to manage it. What I mean is if they go sideways for 2-4 bars I start moving my stop up slowly each day and scratch the trade, or it starts working for me or against me and I have plans for both scenarios I follow.

So from a weekly time frame view , this could be 10-20 trading days before I see my setup follow through. I was thinking risking 2% instead of 1% might make more sense for the time/missed opportunities.

Right now after 6 months of live trading, I find myself comfortable with about 2-4 open trades on the daily frame. I'm not trying to win a marathon and it's just a sweet spot for my trading/ work schedule. I'm just very fussy with setups and it's been working better then when I first started and found myself forcing setups to be fully invested. Thinking maybe adding some weekly time frame setups to my portfolio may allow for a better blend.
More...

most of the risk lies not in the time frame but in the fact that the method does not work

when method works the smallest time frame makes the most sense, when the method does not work even the biggest time-frame will not be of much help to avoid eventual outcome - failure...
 
qxr1011 said:
most of the risk lies not in the time frame but in the fact that the method does not work

when method works the smallest time frame makes the most sense, when the method does not work even the biggest time-frame will not be of much help to avoid eventual outcome - failure...
More...


Kinda correct, only affects the speed of which you get rich or poor.

Even then ignore the TF think of it as different SL and TP, the bigger the slower and less trades you make.
 
Turveyd said:
Kinda correct, only affects the speed of which you get rich or poor.

Even then ignore the TF think of it as different SL and TP, the bigger the slower and less trades you make.
More...

It is not us OP should ask about what his risk limitations should be in the new time-frame, he should consult his method. The method defines risk limitations...

And it never will be in terms of specific percentage (1 or 2 or 10%) , but a range...

What trader can do is to adjust the size of his position to be comfortable with the risks associated with his method in each time frames.
 
Metamega said:
So little about my trading style.

Right now I trade off daily charts, it fits my schedule and style. To be honest day trading doesn't have much interest to me. I find it hard to make sense of the charts and direction of the market. Maybe as I get some more trades under the belt it'd be something I'd put some focus but I'm quite contempt with my work on daily bars.

One idea I've contemplated is actually stepping back some of my trading to the weekly time frames.

Now my concerns are for the work involved and the holding period, should I bump the risk capitol for a weekly time frame?

Right now I risk 1% or less of my capitol depending on the setup on my daily time frame. With 252 trading days a year vs 52 bars on a Weekly, should I bump this up to make it worth the time and capitol?

I'm wondering if its a bad idea to mix and match this from anyone with some history. Maybe some of you trade intra-day with a similar approach to daily time frames?

Reason is I think it'd be a great way to make some of my money that's on the sidelines work a bit. The setup I trade most right now are pullbacks and these sometimes take 2-4 bars from my entry before I start having to manage it. What I mean is if they go sideways for 2-4 bars I start moving my stop up slowly each day and scratch the trade, or it starts working for me or against me and I have plans for both scenarios I follow.

So from a weekly time frame view , this could be 10-20 trading days before I see my setup follow through. I was thinking risking 2% instead of 1% might make more sense for the time/missed opportunities.

Right now after 6 months of live trading, I find myself comfortable with about 2-4 open trades on the daily frame. I'm not trying to win a marathon and it's just a sweet spot for my trading/ work schedule. I'm just very fussy with setups and it's been working better then when I first started and found myself forcing setups to be fully invested. Thinking maybe adding some weekly time frame setups to my portfolio may allow for a better blend.
More...

Ever consider doing Put Debit spread? If you are wrong in direction on stock, this is a way to recoup losses on stock, and if stock goes up, get out of long put and keep short put few days to recoup losses on long Put. I use hedges on everything now whether initial plays or adding on.
 
I'll look into it. I'd have to say I've stayed away from jumping around and sticking with trying to learn a method.

Seems I've read from many traders that the worse thing new traders do is jump around too much.

Options have always interested me but trading education is time and time is always limited it seems.
 
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