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Webinar: FuturesTrader71 (FT71) on Risk, Sizing, Scaling and Trade Management
I've just watched the webinar and really enjoyed it, thanks so much to @FuturesTrader71 for taking the time to do it. I have a question on price risk vs. information risk, but created a new thread to discuss it, I would appreciate your views:
Sorry to keep spamming this thread, but the webinar raised an issue with me that I haven't found a solution for, as yet. I created a new thread for that and it's directly related to what @FuturesTrader71 was talking about. If you have time I would appreciate it if you could have a look:
I am trying to work out which risk management approach is best for me. Bearing in mind I am a beginner trader and I need to tame my "monkey", I am willing to sacrifice profit for a strategy that is easy on the ego. :) Before you jump down my throat …
The rules weren't changed at all. There was a fill for 5 ticks which left 1 contract that stopped out at -5 ticks but given the thin product, the stop ran through and lost a tick.
Here is how it went: 2 contract in position, 1 scaled for 5 ticks (+5 ticks gain), 1 stopped out for 6 ticks because the market (Russell 2000 mini) skipped the stop by a tick (which for anyone who trades the Russell knows that this is a common occurrence). Thanks for the due diligence though.
Most of you are probably aware of the popular book "Fooled by Randomness", by Taleb. His other work includes "The Black Swan: The Impact of the Highly Improbable".
I've noticed that Big Mike was interested about generating random data a couple years ago. There is a thread about it here in futures.io (formerly BMT) but nobody really seemed to be interested at the time. Anyway, I believe it's a very good idea …
I've not tested this yet so it may not be error free.
Here are the parameters as outlined in the Video.
Flip a coin.
Heads go long
Tails go short.
(this is accomplished by a random class in NT Script)
A trade is taken either short or long as indicated by the random generator.
Once a trade is initiated, a 5 Tick stop is added and two targets.
One target at 5 Ticks profit.
One target at 10 Ticks profit.
When the trade closes either win or loss and is flat,
the script waits 30 seconds.
Then another trade is generated by a coin flip.
This continues until the Sample Size is completed. (Default 30 trades)
The number of contracts traded, targets, stops, sample size and time to wait can be configured by the user.
Rejoice in the Thunderstorms of Life . . .
Knowing it's not about Clouds or Wind. . .
But Learning to Dance in the Rain ! ! !
