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A Time Traveler and a Trade

  #11 (permalink)

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lax99 View Post
I had a similar discussion a little while ago which I think follows the same lines above.

Suppose you are going to lose 8 ticks over a string of trades and that there is no way to avoid these losses.

How would you rather do it? One 8 tick loss? Two 4 tick losses? Or a combination of 12 scratches and -1s which eventually stick you -8?

Commissions obviously apply. What is more worth it for a trader? Would you take few trades and pay as little as possible in transaction fees? Or would you take as many trades as you could, pay commissions on all of them, and still end up in a drawdown?

I was going to say something on this part too, but decided to pass on it. I didn't quite understand the question you were presenting.

If I'm going to lose 8 ticks before commissions, then I don't want to take 8 separate 1-tick pre-commission losses, plus the commissions on each of the eight trades. Who would?

If the question is about taking a certain net loss, including commissions, I wouldn't care how it was distributed, since the result would be the same.

Since actual P/L is always net including commissions, I don't really get the premise. Can you help me understand what you mean?

Bob.

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