Via position management, how do you get losers on small size and the winners on the large size?

[hoodyap]

Nothing is "proprietary" -- nor does anyone have proprietary information unless they perhaps are selling something or have invented the car that gets 100 miles to a gallon of gas -- and then out of fear to reveal the secret -- they go to their grave never having benefited from doing something with their proprietary information.
The fact that you were aware of options expiration indicates that you already have knowledge of options trading.
With that in mind, I probably will not "knock myself out" in an effort to post here. BoneCrusher, if you have a profitable method for you -- then just keep trading it -- no need to add more to your method of trading or your disciplined system. Good Luck. Should you want the answers to the " what about finding an actual arbitrage opportunity in the numbers, and finding them frequently enough? What is looked for? " Then if PM me and I can fulfill that request. There will be numerous examples I can send you depending on which ones may fit your account size and or the underlying contracts you are trading.

Hi MACD, your article interest me a lot. Please continue writing if you can find time. Thanks~

 

[MACD]

Hi MACD, your article interest me a lot. Please continue writing if you can find time. Thanks~

Howdyap -- Please note that I am not a career poster -- I occasionally (as in rarely) read threads on message boards (however helpful) those posts may be. I am here as stated before having had a request from a friend that I answer the OP of this thread's opening post. Now I find myself torn between providing continuing answers and my need to attend to my trading. So google "gamma scalping" and also see what I believe is "don't trade like this" thread I mentioned above:
"You may find this thread applicable to this discussion as well:
ES day trading journal - my final attempt
Discussion in 'Journals' started by hurricane_sh, Today at 8:26 PM.

#15 Thursday at 10:06 PM"

Not to disparage Hurricane, who specifically states that he does not want any comments other than "keep up the good work", but what he is doing is the antithesis of what I am writing about in my responses to this thread on Position Management. One approach is Directional trading with stops and targets. My approach is hedged and NO stops and targets which are defined by the trade management. I am sure that by stating this now it will not help to clarify but you may wish to start another thread that is specific to what perhaps you want to explore or maybe contact me to open a private thread. I will temporarily have an alert sent to me for posts to this thread and depending on the sincerity of the inquiry and time constraints I shall answer. Trading, of course, is done to Consistently Make Money and Not to stubbornly persist it that which does not contribute to that end of profitability. Hopefully, I might continue with this in my real motive to help those who are struggling to make trading profitable for them. I ask of anyone seeking any input: "Are you able to predict market direction accurately; and are you trading with proper risk to reward based on that ability?"

 

[Overnight]

Something tells me that MACD is one to watch. Looking through his/her previous posts and ideas in them, he/she is starting to ring true to me. I also believe in hedging to mitigate risk, but am a newbie at it. I sense that MACD is genuine in this regard. *eyes peeled...OWWW! Ever peel your eye? It hurts! hehe.*

 

[Handle123]

I know 99.9% of the answers pertaining to how I trade MY methods. The most risk I take is day trading first hour of most markets where the volume increases the most for that hour, every trade is inverse where I risk much more than I target and often times I know some counter-trend/trend trades will be 12 to 1 of risk to targets, this does not take into consideration of averaging down as these actually give me smaller risk and larger targets. Why do I do it? Been day trading long time and ES the longest, markets behave similar in first hour.

Whereas most would think Long term trading offers the greatest risk, every single Non intraday trade I take is hedged, whether in commodities, stocks, ETFs, Commodity spreads. I have found a way to do it in past twenty odd years, and every five years get better at it.

I often think too many traders are more concerned in picking market direction accurately when that is truly the last thing I check on how to enter. I laugh when I see so many concerned of R:R, no one knows how far any market can go, really, if you concerned so much about these numbers, you will pass up many good quality signals. Back testing show where protective stops should be. Hardly anyone ever mentions on what happens to left to stop from taking a trade, everyone just wants to get in. Almost ever time people will tell me I am making bad choices for entries and yet I question if we both looking at same charts.

After 25.5 years, I have finally changed quantity percentages for Long Term trading Commodities for first and only target going from 50% to 25%, this will give me more left after target is reached plus all the add-ons. It takes great deal of effort for me to change rules as I have to go thru mountain of data and testing.

Just way too many people can't wait to open accounts and start losing instead taking couple years of learning Charts.

2nd Starbucks Time, wish I could buy few of these stores.

 

[Trading Education Buyer]

Losers are inevitable so the above is really the key to successful trading.

Discuss

buy and hold ,never close at a loss ,double the size only once = not martingale , close winners only on double profits and smaller losses on losers ,use option buying and hedging and later option selling to reduce premiums

join the freeloaders club

 

[Trading Education Buyer]

I have done it , here is the proof of the formula I have

So keep looking and do the hard work , you may find this holy grail .one hint for you , it uses futures , options and hedging with varying position sizes , giving you the required result of the title of this thread.

I HAVE HIDDEN THE FORMULA AND DETAILS ON EXCEL.

 

[MACD]

Mirah this is the thread I sent you by skype...

 

[Mirah]

Mirah this is the thread I sent you by skype...

Thanks for the link. I am going through this and taking notes.