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#11 NAV

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Posted 06 December 2017 - 01:15 PM

With small stops, you can survive the sideways markets. With big stops and two ways trading, you can have significant drawdowns.


Edited by NAV, 06 December 2017 - 01:16 PM.

"It's not the knowing that is difficult, but the doing"

 

“I have heard many men talk intelligently, even brilliantly, about something – only to see them proven powerless when it comes to acting on what they believe” - Bernard Baruch

 


#12 CLK

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Posted 06 December 2017 - 01:35 PM

I realize it's not going to be easy trading this system mechanically, so I am looking for ways to go flat at risky points until

more information is available. Choppy markets are going to be tough I agree, but I can throw in a couple high leverage

weekly option trades here and there to make up for some of that, have to pick the right setup and they are not often.

 

Using small stops and stopping the whole lot at once, how does that work out profitably if you get stopped 2-3 times but when you win you scale out in increments ? 


Edited by CLK, 06 December 2017 - 01:35 PM.


#13 CLK

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Posted 06 December 2017 - 01:39 PM

The system is now on a sell, I knew it would bounce intraday so I waited to mark the spot where to take profit and short, I think this is close enough.

They could go back to even on the open, but can they hold it there for an hour ?

 

 

 

 

 

Taking the system flat here at $263.40, I don't like the volume and will wait to see what happens.



#14 NAV

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Posted 06 December 2017 - 01:54 PM

 

 

Using small stops and stopping the whole lot at once, how does that work out profitably if you get stopped 2-3 times but when you win you scale out in increments ? 

 

Let's say you have 2 stop hits for average 4 points, you lose about 8 points net. If your third trade is profitable and you take half out at 10 points and the other half at 40 points, you make 25 points net on the overall trade. 25-8 = 17 is still profitable. 

 

If you don't scale out and take profits on the entire position, then you would make 40-8 = 32 points.

 

But then scaling out has it's own advantages. when the market does not trend well, you at least end up breaking even on the trades which would otherwise be losses.

 

If you expect big trending moves, exiting all at once has better profitability. If you are at the tail end of the moves, partial profits has it's advantages.

 

But with big stops, let's say you get 2 stop hits of 15-25 points each, you will be psychologically worn out. If you are using such big stops, you better trade for bigger position moves, not the small swings.


Edited by NAV, 06 December 2017 - 01:55 PM.

"It's not the knowing that is difficult, but the doing"

 

“I have heard many men talk intelligently, even brilliantly, about something – only to see them proven powerless when it comes to acting on what they believe” - Bernard Baruch

 


#15 CLK

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Posted 07 December 2017 - 10:43 AM

Put system back on a buy here at 263.81. 



#16 CLK

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Posted 07 December 2017 - 02:34 PM

Back on a sell at $263.88. I don't like the action today.



#17 NAV

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Posted 08 December 2017 - 10:54 AM

Back on a sell at $263.88. I don't like the action today.

 

Now you started overriding your system based on your judgement.


"It's not the knowing that is difficult, but the doing"

 

“I have heard many men talk intelligently, even brilliantly, about something – only to see them proven powerless when it comes to acting on what they believe” - Bernard Baruch

 


#18 CLK

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Posted 08 December 2017 - 11:00 AM

 

Back on a sell at $263.88. I don't like the action today.

 

Now you started overriding your system based on your judgement.

 

 

Yes, bad move I had the volume signal and faded it.



#19 CLK

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Posted 08 December 2017 - 12:00 PM

Somehow I have come to the conclusion that if something doesn't happen fairly quickly then I immediately

think it's not going to happen and start planning for the reverse. Like yesterday they had a good opportunity to

rally a lot, it didn't happen, I started thinking bear flag, shelf, must be going to drop, this is taking too long.

Sometimes it works that way but this is probably the most costly part of my trading, not giving something 

sufficient time. 



#20 NAV

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Posted 09 December 2017 - 11:32 AM

Somehow I have come to the conclusion that if something doesn't happen fairly quickly then I immediately

think it's not going to happen and start planning for the reverse. Like yesterday they had a good opportunity to

rally a lot, it didn't happen, I started thinking bear flag, shelf, must be going to drop, this is taking too long.

Sometimes it works that way but this is probably the most costly part of my trading, not giving something 

sufficient time. 

Correct. It's a mental game. 


"It's not the knowing that is difficult, but the doing"

 

“I have heard many men talk intelligently, even brilliantly, about something – only to see them proven powerless when it comes to acting on what they believe” - Bernard Baruch