some crappy trades: INFY 5/5min stopped out. bot GOOG dec600C at close. Commodity WL with charts easy short that I missed as was busy with NASDAQ WL. After first hr decent set ups in stec shoo ctrp agco ivan yhoo jbht >$15 15/30 min charts. bot #100 MCP to sell for $100 profit
Trader AM, I enjoy your blog quite a lot. I hope I'm not asking something that has already been asked and covered some place else on the blog - I appologise if that is the case. I notice that you describe your profits 1R... 2R. This leads me to believe you are familiar with Van Tharp's excellent books. Several questions bouncing around in my head. If you are familiar with his work why are you close out trades completely at 2R? I tell myself maybe he's simply reading the market. I went back about 50 or more trading days & I think I only saw 1 trade for 3R. Additionally, I often see that your trades run for 4R...5R. If you are familiar with Van Tharp's work then you might recall how important it is to have multiple R trades. Tharp talks about how a few good trades will make or break a years profits. Have you ever considered splitting your trades into 3 exits? Have you recently changed(over 50 days ago) your way of trading due to market conditions? Now, I know this must sound critical. It's not -I wish I had your win/loss ratio! I think you are an incredibly self disciplined trader! I also believe your frankness is quite refreshing. Most bloggers want their followers to see them as experts and therefore wouldn't actually post the amount of trading capital they have. It certainly proved your honesty/integrity on this blog. If you were lying, the amount would have been much higher-and really who would have known any different? Thanks for any insight you can give me on your style of trading. I appreciate it.
Yes, familiar with Van Tharp. When I was trading 15min > my strategy was close half at +1R then rest at end of day.
On the 5min > I'm trying to base it more on reading the market. When I was doing my backtesting there wasn't much difference between closing partial and leaving a runner compared to closing all at +1R for example. To be honest I'm still not fully comitted to one way of exiting compared to the other...not ideal I know for live trading.
The thing with 5min is that a lot of the time price comes back to entry after hitting +1R and so leaving a runner is not going to give you any benefit.
Three way exit is not something I want to do. Too much maintenance and also increased commissions.
Thanks for your post. I will post my current thinking on setups etc before the year is out. Exits is still a bit discretionary at the moment, so I may need to try to make these more definitive as we go into the new year.
3 comments:
some crappy trades: INFY 5/5min stopped out. bot GOOG dec600C at close. Commodity WL with charts easy short that I missed as was busy with NASDAQ WL. After first hr decent set ups in stec shoo ctrp
agco ivan yhoo jbht >$15 15/30 min charts. bot #100 MCP to sell for $100 profit
Trader AM,
I enjoy your blog quite a lot. I hope I'm not asking something that has already been asked and covered some place else on the blog - I appologise if that is the case.
I notice that you describe your profits 1R... 2R. This leads me to believe you are familiar with Van Tharp's excellent books. Several questions bouncing around in my head. If you are familiar with his work why are you close out trades completely at 2R? I tell myself maybe he's simply reading the market. I went back about 50 or more trading days & I think I only saw 1 trade for 3R. Additionally, I often see that your trades run for 4R...5R. If you are familiar with Van Tharp's work then you might recall how important it is to have multiple R trades. Tharp talks about how a few good trades will make or break a years profits. Have you ever considered splitting your trades into 3 exits? Have you recently changed(over 50 days ago) your way of trading
due to market conditions?
Now, I know this must sound critical. It's not -I wish I had your win/loss ratio! I think you are an incredibly self disciplined trader! I also believe your frankness is quite refreshing. Most bloggers want their followers to see them as experts and therefore wouldn't actually post the amount of trading capital they have. It certainly proved your honesty/integrity on this blog. If you were lying, the amount would have been much higher-and really who would have known any different?
Thanks for any insight you can give me on your style of trading. I appreciate it.
Anon.
Yes, familiar with Van Tharp. When I was trading 15min > my strategy was close half at +1R then rest at end of day.
On the 5min > I'm trying to base it more on reading the market. When I was doing my backtesting there wasn't much difference between closing partial and leaving a runner compared to closing all at +1R for example.
To be honest I'm still not fully comitted to one way of exiting compared to the other...not ideal I know for live trading.
The thing with 5min is that a lot of the time price comes back to entry after hitting +1R and so leaving a runner is not going to give you any benefit.
Three way exit is not something I want to do. Too much maintenance and also increased commissions.
Thanks for your post. I will post my current thinking on setups etc before the year is out. Exits is still a bit discretionary at the moment, so I may need to try to make these more definitive as we go into the new year.
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