your welcome research builds confidence to put trades on as they come without discretionary thoughts to keep you out of trades
I was int'd to read the exchange between Jtrade and Divergence about money mgt. Divergence, I don't think Jtrade is sounding greedy at all. And you are right, making a brick one at a time and adding it to the wall like Pete Rose is the way to do it. For a few years, I did nothing but scalp, i.e. exiting a whole position at 0.7R to1R in profit (R=distance from entry to initial s/l, i.e. the initial risk in pips, ticks, etc.).
However, a professional trader w/ more years trading than me once convinced me that taking half off at 1R (or close to it), moving stop to breakeven, and trailing a stop on the second half of the position would ultimately produce a bigger return over time. IMO, he was correct, and since then I have done that no matter what TF I trade, from H4 to M1 to ticks. As Linda Raschke has said about the Chicago futures pit traders she knows, most of the time you are not getting that runner. You are biding your time, being patient, managing your risk, exiting with nickel and dime gains. But a few times a month, along will come the big runners that make your whole month.
Also, philosophically, I think that in life it is the extra effort and value that you create through that effort that gets especially rewarded. There is little value in scalping a whole position at 1R in profit. Trailing a stop, however, involves skill and should be rewarded when done effectively.
In trading there is no right or wrong. There are only results.
Make it a great weekend.
From California
However, a professional trader w/ more years trading than me once convinced me that taking half off at 1R (or close to it), moving stop to breakeven, and trailing a stop on the second half of the position would ultimately produce a bigger return over time. IMO, he was correct, and since then I have done that no matter what TF I trade, from H4 to M1 to ticks. As Linda Raschke has said about the Chicago futures pit traders she knows, most of the time you are not getting that runner. You are biding your time, being patient, managing your risk, exiting with nickel and dime gains. But a few times a month, along will come the big runners that make your whole month.
Also, philosophically, I think that in life it is the extra effort and value that you create through that effort that gets especially rewarded. There is little value in scalping a whole position at 1R in profit. Trailing a stop, however, involves skill and should be rewarded when done effectively.
In trading there is no right or wrong. There are only results.
Make it a great weekend.
From California
- #6,164
- Apr 11, 2015 2:10pm Apr 11, 2015 2:10pm
- Joined Nov 2010 | Status: Trader | 4,484 Posts
I understand the logic. But to me the only thing we really know 100% is what are we willing to risk. So in order to do what you are saying is you have to trade 2 lots and if it triggers and it goes 1 tick then shoots against you you lose 220. Now you put on a few scalps and you break even. Basiclly your waiting for the big runner to happen. I not saying thats wrong except for me. Its all about probability I usually trade 3 contracts so me getting 2 wins a day is 780 dollats for the day i dont have to wait for a runner i create the runner with 2...
However here's my take for what its worth, don't set a pre-trade exit like 1R or 2R etc just trade with the strongest trends you can identify then just take what the market gives you soon as you see it falter close out. Theres days when you get out too early and days when you leave it too late, but overall because you're with the strong trend you tend to get better than 1R on a regular basis and sometimes many more...
One other thing that I say is I can't control the size of my winners thats down to the market and what its prepared to give me, however I can ALWAYS control the size of my losers (10 pips) which makes it easier to profit from the winners....
Feel the Fear and do it anyway!!!
- #6,165
- Edited 3:39pm Apr 11, 2015 3:03pm | Edited 3:39pm
- Joined Jul 2010 | Status: Trader | 9,189 Posts
- #6,166
- Apr 12, 2015 5:12am Apr 12, 2015 5:12am
- | Joined Feb 2006 | Status: Trader | 1,392 Posts
In trading there is no right or wrong. There are only results.
- #6,175
- Apr 12, 2015 8:09pm Apr 12, 2015 8:09pm
I did it !!At first I had to open an account from sierrachart.com then open account for the data. used from optimusfutures. Anyway thanks guys
Did you find the indicator in Sierra? Any clues please since Im not familiar with this charting package.
- #6,179
- Apr 13, 2015 2:57am Apr 13, 2015 2:57am
Hello. I have just won 2 trades = 24 ticks 
(I have 10 tick range bar chart, 12 tick target and stop)
Am I doing right? My logic for the entry are 1) trend -> wait retracement-> bar color with the trend + opposite dot color. 2) opposite color dot must with the trend (higher than previous if the trend is up, lower then previous is the trend is down)
here are my examples:
(I have 10 tick range bar chart, 12 tick target and stop)Am I doing right? My logic for the entry are 1) trend -> wait retracement-> bar color with the trend + opposite dot color. 2) opposite color dot must with the trend (higher than previous if the trend is up, lower then previous is the trend is down)
here are my examples:
- #6,180
- Apr 13, 2015 4:58am Apr 13, 2015 4:58am
- | Joined Feb 2006 | Status: Trader | 1,392 Posts
Am I doing right?