You are using an out of date browser. It may not display this or other websites correctly.
You should upgrade or use an alternative browser.
You should upgrade or use an alternative browser.
YM Journal
- Thread starter Adamned
- Start date
not giving up on this, are you?
He's started a new thread called "YM Journal: VITAL". He wants us to post our questions here, and keep the other one clean.
Here's a question, and it's not meant to be confrontational, rather, I'm curious how your worst drawdown could have happened. You say that it equates to 10 full losses in a row. However, you also say you've never had more than 4 losses in a row.
Therefore, to get the equivalent of 10 losses in a row, you must have had something like 4 looses, then a win, then 4 losses, then a win, then 4 losses - resulting in a period of time when you might have had 12 losses and 2 wins. Further, if your average loss is not usually the full amount then you must have had worse than a 2:12 win:loss average.
Anyway, can you please expand on how you achieved such a large drawdown, and also, what your average win:loss ratio would be with this method ?
Thanks.
Here's a question, and it's not meant to be confrontational, rather, I'm curious how your worst drawdown could have happened. You say that it equates to 10 full losses in a row. However, you also say you've never had more than 4 losses in a row.
Therefore, to get the equivalent of 10 losses in a row, you must have had something like 4 looses, then a win, then 4 losses, then a win, then 4 losses - resulting in a period of time when you might have had 12 losses and 2 wins. Further, if your average loss is not usually the full amount then you must have had worse than a 2:12 win:loss average.
Anyway, can you please expand on how you achieved such a large drawdown, and also, what your average win:loss ratio would be with this method ?
Thanks.
Thanks for the interest in my journal. The worst drawdown scenario I had given earlier. Is truly the worse case scenario. Its nearly double the actual drawdown I experienced. It accounts for errors of all types. For example, the possibility I miss entered the stop. I have done this more than once. The possibility I lose my internet connection right upon entry and my stop isn't in yet. The list can go on. I simply use a rule of thumb to double the worst drawdown I have experienced.
The actual results tend to vary due to the nature of my stops. I use chart stops which are different on each setup. The stop can be much smaller than the 40pt safety stop, For example 20 pts. Just for conversation if I would experience three 20pt stop outs, it would be less damage than two 40pt stop outs. Its similar to life each setup can always bring a different outcome.
After trading this setup for quite some time. I think a good ball park figure can be given to its results. This is definitely not set in stone just general feel. You take three steps forward and then take one step backwards. Its nice if that steps backwards is only for 20pts or so. However, this is not always the case. Its also nice if your three steps forwards are for 80 pts, but again this is not always the case. I hope some of this helps I know its not the best of answers.
The actual results tend to vary due to the nature of my stops. I use chart stops which are different on each setup. The stop can be much smaller than the 40pt safety stop, For example 20 pts. Just for conversation if I would experience three 20pt stop outs, it would be less damage than two 40pt stop outs. Its similar to life each setup can always bring a different outcome.
After trading this setup for quite some time. I think a good ball park figure can be given to its results. This is definitely not set in stone just general feel. You take three steps forward and then take one step backwards. Its nice if that steps backwards is only for 20pts or so. However, this is not always the case. Its also nice if your three steps forwards are for 80 pts, but again this is not always the case. I hope some of this helps I know its not the best of answers.
The FESX and DAX is most likely more reactive to downticks because its playing catch up. It was open yesterday and up on the day. to get in line it has to come down harder. I think this is going to be a nice day to go long to fill the gap on the spy.. If I can get a set up. I kind of like the volumes. The offer is really starting to dry up but no one has stepped up the bid yet.
There is much to learn from todays action for students of the markets. Todays long entry off the bottom was the perfect example of quality market analysis. It clearly portrays the principle of one of the most important aspects of successful trading. The principle of confluence. Not fibonacci confluence something even better markets confluence. All three major indexes gave a very clear long signal. The volume was near perfect, the offer totally dried up at the bottom. Rates offered a favorable setup. These are the days that I love. A true exercise in the execution strategy and tactics with laser like precision. The end result is a simple reward for the trader who is skilled enough the recognize that "all the engines are firing on all cylinders."