What would you prefer - many or few trades !!! | Forex Factory

Options

Go to
Permalinks
Print Thread

Similar Threads

Which would you prefer: increasing lot size or TP size? 24 replies

Market maker prefer to let you run around 0 replies

What do you prefer for trading? 13 replies

Which System Do You Prefer? 30 replies

which one you prefer? 6 replies

What would you prefer - many or few trades !!!

  • #1
  • First Post: Jan 29, 2009 2:30am Jan 29, 2009 2:30am
hi,


If you could choose from 2 trading strategies:

1. many trades (about 10 times as many as strategy 2)


2. few trades better win/loss ration due to more exact entries.


Without any special MM applied it produces over a certain time the same end result in cash. ( actual profitable)


My own thought: Even though it is nice to have a very high success rate - personally I think it would be better to choose the strategy 1. which produces more trades: as there might be more possibilities to adjust Unit Sizes etc (MM) which could greatly improve the outcome..

What is your thought about it.


__Thanks__ MJ
  • #2
  • Jan 29, 2009 2:35am Jan 29, 2009 2:35am
Given that it is a winning strategy, more trades smooths out the equity curve and reduces risk.
The breaking of a wave cannot explain the whole sea.
  • #3
  • Jan 29, 2009 3:47am Jan 29, 2009 3:47am
Quoting M_j
hi,


If you could choose from 2 trading strategies:

1. many trades (about 10 times as many as strategy 2)


2. few trades better win/loss ration due to more exact entries.


[size=2][font=Arial,Helvetica,sans-serif]Without any special MM applied it produces over a certain time the same end result in cash....
Hi,

It largely depends what you can handle.

regards
daytrading
Enter Signature
  • #4
  • Jan 29, 2009 5:40am Jan 29, 2009 5:40am
I think as you become more experienced, you tend towards more trades...but not too many. The following might be a typical trader's development.

Stage 1: Overconfidence

I'm going to be so great at this. I will have lots of trades and they will all be winners!

Stage 2: Fear

This isn't easy. I better slow down and try to predict the market better. (moving towards fewer trades)

Stage 3: Confusion

No one can predict the market. What should I do?

Stage 4: Epiphany

I can't predict the market, so I just have to trade every signal my system gives me. (moving towards more trades) I must trade in a very disciplined way. That way, I can stick around long enough to catch the occasional big move. The big move will make up for my losses. It really is true what they say: Cut your losses short and let your profits run. I finally understand it!

Stage 5: Greed

It's working! I've made a lot of money today. Let me just take a few more trades today. Imagine all the profit!

Stage 6: Enlightenment

Ok, it works, but only if I don't over trade. I have to know when to quit for the day. I must set daily goals and stop once I have met that goal.


Well that's the stage I'm at so far. I hope that's the last one. Hehe.
  • #5
  • Jan 29, 2009 8:28am Jan 29, 2009 8:28am
Trades are not free, you're paying a commission on each one. So, the "more often" trades would need to produce significantly higher profits in order to come out ahead.

I'll take fewer trades
  • #6
  • Jan 29, 2009 9:05am Jan 29, 2009 9:05am
I prefer fewer trades. Of course, one must have a strong stomach.

J
{Promotion Removed}
  • #7
  • Jan 29, 2009 9:21am Jan 29, 2009 9:21am
Assuming that You have and edge and your strategy produces a positive expectancy, then more trades is better as Craig said.
"I say high, You say low, You say why, and I say I don't know..."
  • #8
  • Jan 29, 2009 9:41am Jan 29, 2009 9:41am
Quoting LongToBeFree
Trades are not free, you're paying a commission on each one. So, the "more often" trades would need to produce significantly higher profits in order to come out ahead.

I'll take fewer trades

Thanks. Generally speaking a good point for a opposite view of mine.

It applies to what I have in mind.

(This may not be necessarily in all cases - as I pay only spreads: so 1 trade with 100 000 or 10 trades with 10 000 would mean the same: http://fxtrade.oanda.com/tools/fxcal...lculator.shtml)


Still not convincing enough but a good point to consider.
__Thanks__ MJ
  • #9
  • Jan 29, 2009 9:49am Jan 29, 2009 9:49am
Quoting M_j
Thanks. Generally speaking a good point for a opposite view of mine.

It applies to what I have in mind.

(This may not be necessarily in all cases - as I pay only spreads: so 1 trade with 100 000 or 10 trades with 10 000 would mean the same: http://fxtrade.oanda.com/tools/fxcal...lculator.shtml)


Still not convincing enough but a good point to consider.
You're thinking is flawed because you're not taking into account the frequency of the trades. To use your example:
1 trade with 100 000 twice each month
10 trades with 10 000 twice each week

Its not about the spread you're paying, its about how often you're paying it
  • #10
  • Jan 29, 2009 9:57am Jan 29, 2009 9:57am
More money with less trades.... = more personal time to enjoy life.
Same Whore .... Different Dress
  • #11
  • Jan 29, 2009 10:11am Jan 29, 2009 10:11am
Quoting LongToBeFree
You're thinking is flawed because you're not taking into account the frequency of the trades. To use your example:
1 trade with 100 000 twice each month
10 trades with 10 000 twice each week

Its not about the spread you're paying, its about how often you're paying it
No this is not what I meant:
Quoting M_j
(This may not be necessarily in all cases - as I pay only spreads: so 1 trade with 100 000 or 10 trades with 10 000 would mean the same: http://fxtrade.oanda.com/tools/fxcal...lculator.shtml)
I meant there could be two systems without any special MM applied which produces over a certain time the same end result in cash. ( actual profitable)

1 trade with 100 000 a day
or
10 trades with 10 000 a day



But as I said you are right in my particular case: and made a good point.

But as the one with more trades covers the extra expenses I still think about using in the end the one which produces more trades because of I think I could better fine tune it.




Interesting what everyone thinks of.
__Thanks__ MJ
  • #12
  • Jan 29, 2009 2:04pm Jan 29, 2009 2:04pm
i dont count trade..i just trade when my signal says so...
however recently..i feel i trade more than i used to..it simply because my signal hit the spot more often...
  • #13
  • Jan 29, 2009 2:56pm Jan 29, 2009 2:56pm
Quoting johnedoe
More money with less trades.... = more personal time to enjoy life.
Agree...
{Promotion Removed}
  • #14
  • Jan 29, 2009 3:27pm Jan 29, 2009 3:27pm
Quoting johnedoe
More money with less trades.... = more personal time to enjoy life.
My trades are all executed via black box, so long, short, fast, slow, green...makes no impact on my personal time. But as usual here we are getting vastly off track.
The breaking of a wave cannot explain the whole sea.
  • #15
  • Jan 29, 2009 3:37pm Jan 29, 2009 3:37pm
many trades or few trades. this question has no clear answer. this is due to the fact the market is not always volatile and we all want to be in it as much as possible (gotta make that money). this leads to adaptation to the situation. in other words if a market is in a 100pip range lets say where resistance and support is clearly defined, you may play that range with many trades (mostly scalps) until the range is broken. If a nice trend down develops lets say, you want a few good trades or even just one to ride the trend until the trend comes to an end. Like many other things, the market decides which is better, many or few trades, our best bet is just to play along with whatever the market gives us.
Different opinions highly valued, ignorant to slander.
  • #16
  • Jan 30, 2009 2:32am Jan 30, 2009 2:32am
Quoting johnedoe
More money with less trades.... = more personal time to enjoy life.
I think for a manual trader a good point to consider -- even though this depends heavy on the trading style and does not mean necessarily that less trades is less screen time.


Actually in my 2 examples it would be the same screen time - just other entries and win/loss ration.


personally I'm like Craig in this respect:

Quoting Craig
My trades are all executed via black box, so long, short, fast, slow, green...makes no impact on my personal time. ....


Still interesting if there are some other good reason for one or the other??
__Thanks__ MJ
  • #17
  • Jan 31, 2009 1:52am Jan 31, 2009 1:52am
Still interesting if there are some other good reason for one or the other??
__Thanks__ MJ
  • #18
  • Jan 31, 2009 12:08pm Jan 31, 2009 12:08pm
Quoting Craig
Given that it is a winning strategy, more trades smooths out the equity curve and reduces risk.
Noted this...

But is it directly proportional in gaining profits? Meaning lower risk, lower profit gains.
  • #19
  • Feb 3, 2009 5:15pm Feb 3, 2009 5:15pm
not necessary lower risk lower profit..

it is more to maximal profit from appropriate risk..
  • #20
  • Feb 3, 2009 7:41pm Feb 3, 2009 7:41pm
Quoting Craig
Given that it is a winning strategy, more trades smooths out the equity curve and reduces risk.
This...!
0 traders viewing now