Dealing with chaos

You get your entry criteria....

You have targets for TP and SL....

Now set and forget, walk away because you are confident that (statistically) your TP hit more often than your SL.

I challenge you to step into the forest and look at the trees. Opening a trade may very well have a nice statistical TP and SL level... but it is the chaos that occurs in the life of the trade that I suggest should be managed.

You are likely better served to have some exit criteria to get out of each trade before the TP or SL is hit, whether in profit or loss. And I say that a TP and SL are the limits of the trade, assuming the exit criteria isn't met while the action occurs.

Another way to deal with a trade, easing the potential stress, is to view it as a coin-toss. Since a coin-toss doesn't hang in the air, either your SL or TP will be hit, no matter what.

You need to remind others that this thread has nothing related to BW chaos trading.

Tom,

You've been a member of FF for a long time, you are an established character around here. You've done a lot of neat things in the last couple years, I beleive it was you who had a picture of your office and trading setup in Germany. You're obviosly an ambitious guy and I wish you success in your new venture. The way you are going about it is slightly distaseful though. I think starting out in the commercial section would be the right thing for you to do. Sure, you are not a profitable business right now, but your motivation is for profit--you're seeking out investors. There is nothing wrong with this, just be transparent from the start so that nobody has any reason to question your integrity.

Humbly,

Jim

Point taken, Jim.

I will rethink what I'm doing with regard to my website. Everything is happening at such a rapid pace.... and I am only one horse power.... Sometimes I don't knew my right foot from my left.

That said, maybe Twee will move me where I need to be? I guess I could start a thread in the commercial section and remove my signature... will consider what to do this week.

Thanks buddy.

I am not sure what you are getting at exactly. But i am very interested in a term you used: Chaos.

I think chaos is another word for change. Sometimes we dont understand change, sometimes we do. Chaos has often been perceived as the same thing as random. Its not fruitful do debate whether or not price is random, the argument could extend infinitely, since there will never be any evidence to prove that there is true randomness, or that there is no true randomness.

I for one, dont think that the EUR/USD price is random, if i did, i would not trade, it would depend not on me to trade, but on other things if it where random. I cant back this up with any 100% sure empirical evidence, as i said.

Further i can tell you this, i would never leave one or many positions unattended. This can be perceived, quite easily, as the effect of chaos, change that is things change, i must adapt to new input.

You say "You are likely better served to have some exit criteria to get out of each trade before the TP or SL is hit, whether in profit or loss. And I say that a TP and SL are the limits of the trade, assuming the exit criteria isn't met while the action occurs." and i think these are wise words. TP and SL should be a preset idea of how things usually play out, if they dont, its wise to adapt, so that your idea changes with the new input.

damm yaed i love reading ur stuff,so much knowledge u put into every post