What's your Edge

[tomorton]

It works really well when it works. The idea is to open a new trade of same size and stop-loss distance as soon as the first trade makes break-even (assuming the TA is still just as favourable). Repeat the process when the second trade reaches break-even and so on, moving the stop-losses on existing trades each time.

It is an amazing r:r multiplier though it leads to a lower win rate.

This was the real secret of the Turtle Traders.

 

[jys78]

"You think you know me"

 

[zghorner]

It works really well when it works. The idea is to open a new trade of same size and stop-loss distance as soon as the first trade makes break-even (assuming the TA is still just as favourable). Repeat the process when the second trade reaches break-even and so on, moving the stop-losses on existing trades each time.

It is an amazing r:r multiplier though it leads to a lower win rate.

This was the real secret of the Turtle Traders.

do you determine your position sizes similar to the turtles as well?
Unit Size (N) = 1% of account / ATR(20) x $ per point aka (Deltax100)

 

[Slope Trader]

It works really well when it works. The idea is to open a new trade of same size and stop-loss distance as soon as the first trade makes break-even (assuming the TA is still just as favourable)...

.

Hey Tom,

Just for clarification - does when the first trade makes break-even mean that the distance price has moved forward is the same as the distance from the entry back to the stop-loss price? or does it mean when price has moved forward a certain amount not specified and the stop-loss has been moved forward to break-even... can't quite visualize it.

P.S. In Texas we use Hi and Hey interchangeably... suddenly occurred to me that it might sound odd to the ears of folks living across the ocean.

 

[Rapunzel]

I agree, can't do how the masses trade TA to be profitable enough, some signals will be taken but also with chart patterns works for me. Takes long time to learn how to buy low and sell high , but risk is less

I completely agree. This seems like a very good approach; edge signal with ultimate trader execution based on PA, TA and experience.

 

[tomorton]

do you determine your position sizes similar to the turtles as well?
Unit Size (N) = 1% of account / ATR(20) x $ per point aka (Deltax100)

No, the stop-loss distance is a multiple of ATR(14) and I adjust position size on every trade to 1% of capital.

 

[tomorton]

.

Hey Tom,

Just for clarification - does when the first trade makes break-even mean that the distance price has moved forward is the same as the distance from the entry back to the stop-loss price? or does it mean when price has moved forward a certain amount not specified and the stop-loss has been moved forward to break-even... can't quite visualize it.

P.S. In Texas we use Hi and Hey interchangeably... suddenly occurred to me that it might sound odd to the ears of folks living across the ocean.

Its the first option, when price moves forward by whatever the initial stop-loss distance was. At this point Trade 1's stop is moved to Trade 1's entry and Trade 2 is opened with the same stop-loss distance, i.e. the stops of both trades are at the same price level, Trade 1's entry. Same pattern with subsequent trades - open another trade when the last trade reaches its break-even, move all previous stops to the last trade's entry

It takes a bit of mental work to picture it, definitely worth demoing.


I'm in the UK. The differences between American English and British English are fascinating. In some cases US English is more "pure" because our English developed in different directions after the 18th century, where US English remained close to its origins: we used to use many words and spellings which now seem "Americanised".

We do say Hey meaning Hello, buy Hi would be more common. Hey! is used more often here to get someone's attention abruptly. Hi! used to be used in this way but it would mostly have been middle to upper class: the working class might still shout Hoy! for this purpose.
(sorry, hard to discuss anything about England without class creeping in)

 

[zghorner]

No, the stop-loss distance is a multiple of ATR(14) and I adjust position size on every trade to 1% of capital.

thanks for that.

 

[sweetanimegirl]

myself & cutting losses fast

 

[timtrader]

How I got my edge:

1. Study/review charts like crazy
2. Figure out what you're best at and what you keep coming back to after trying other types of trading methods that just don't work out for you (i.e., swing trading, scalping, long term.)
3. Review your trades often, especially if you have a losing day
4. Find some chart pattern that repeats itself all over the place every day. Then zero in on the best entry points, when to hold/re-enter, when to exit, when to take a loss.
5. DON'T trade against the trend. For example, if you trade intraday on a one-minute chart, playing the up and down waves....don't enter long if a nearby longer term chart (10-minute for example) is still going down....the odds of success will be MUCH higher if you wait for that longer term chart to turn back upwards.
6. Learn while using a zero commission broker....start with one share, then gradually increase amount as you learn and gain confidence.
7. Don't let your emotions get the best of you. If you get burned on a nasty trade, return to looking for trades you know have the highest likelihood of success, rather than jumping into something that is moving at the moment and will burn you further.
8. Be realistic and understand that the tuition in this game is steep.

Good Luck!