Well, with Christmas and New Year's just around the corner I'm probably gonna lay off the trading for the rest of the month. During this time I plan to do a little work on my MM.
I'm guessing that MM is a personal thing with different people preferring different methods and I'm pretty sure my method SUX! So, I thought I might share what I've been doing with everyone so that I might get abused, laughed at, humiliated, and more likely than not, sent right back to the Golden Gates of the Path entrance again (I'm the one who carved, "Marto was here" in the gate frame). But, since my wife has spent the last 20 years draining most the pride from my soul anyway, I think I can handle the abuse, as long as I can just get a better understanding of MM!
It's overly-cautious (which I'm guessing is my main problem) but I've developed this with preservation of capital as my foundation. It goes something like this:
HYPOTHETICAL.....Ok, let's say I go long at X price. My TP is X+150 (next resistance) and my SL is at X-185 (hiding underneath a good support level). Now, what I've been doing is closing half the postion at +50, moving my SL to BE for the reamining half of the position and initiating a 75 pip trailing stop while keeping my TP fixed.
That's about it. My plan would later change the trailing stop to a manual stop that I would widen over the 75 pips to give the trade more room if I was on a good trade.
Now, this has been working great as far as keeping me profitable, BUT, vary rarely do I ever reach my TP.
I know this it probably too "safe" but I'm not real sure how far too push it before I go from too safe to too risky. Does this make sense?
I have always struggled with MM and I keep thinking I'll find my "comfort setting" but so far I have not. The reason this is so important to me right now is because I have had 3 profitable months in a row using Strat's method (and already in plus territory for Dec!) and I would hate to know I was finally trading well but screwing it up with poor MM.
I'm not asking for anyone's full-blown MM system, I could just use a few ideas to get me on track.
One more thing. This thread is getting HUGE, so if I get sent all the way back to the beginning I would sure appreciate a ride if anyone else is going that way...........
GL,
Marto
I'm guessing that MM is a personal thing with different people preferring different methods and I'm pretty sure my method SUX! So, I thought I might share what I've been doing with everyone so that I might get abused, laughed at, humiliated, and more likely than not, sent right back to the Golden Gates of the Path entrance again (I'm the one who carved, "Marto was here" in the gate frame). But, since my wife has spent the last 20 years draining most the pride from my soul anyway, I think I can handle the abuse, as long as I can just get a better understanding of MM!
It's overly-cautious (which I'm guessing is my main problem) but I've developed this with preservation of capital as my foundation. It goes something like this:
HYPOTHETICAL.....Ok, let's say I go long at X price. My TP is X+150 (next resistance) and my SL is at X-185 (hiding underneath a good support level). Now, what I've been doing is closing half the postion at +50, moving my SL to BE for the reamining half of the position and initiating a 75 pip trailing stop while keeping my TP fixed.
That's about it. My plan would later change the trailing stop to a manual stop that I would widen over the 75 pips to give the trade more room if I was on a good trade.
Now, this has been working great as far as keeping me profitable, BUT, vary rarely do I ever reach my TP.
I know this it probably too "safe" but I'm not real sure how far too push it before I go from too safe to too risky. Does this make sense?
I have always struggled with MM and I keep thinking I'll find my "comfort setting" but so far I have not. The reason this is so important to me right now is because I have had 3 profitable months in a row using Strat's method (and already in plus territory for Dec!) and I would hate to know I was finally trading well but screwing it up with poor MM.
I'm not asking for anyone's full-blown MM system, I could just use a few ideas to get me on track.
One more thing. This thread is getting HUGE, so if I get sent all the way back to the beginning I would sure appreciate a ride if anyone else is going that way...........
GL,
Marto