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Webinar: Private Banker's Perspective on Risk Management Presentation
Grate webinar Ben.
Do we need to treat re-entry (satellite) trade in the working core position direction as new trade with 2/3s of position? What will be stop for this?
Do we need to enter satellite trade based total risk on the trade (core + satellite) or just satellite?
I thought it was excellent, very clearly laying out the various kinds of risk and at least outlining ways of dealing with them, from the highest levels to the technicals of individual trade management. Highly recommended.
Thanks for a great webinar, Ben ! Although I was a little late to the party, I really enjoyed this professional webinar as well as your well-prepared Q&A hour in which you answered all questions very objectively and patiently.
Broker: Advantage, Trading Technologies, OptionsCity, IQ Feed
Trading: CL, NG
Posts: 1,038 since Jul 2010
Thanks Given: 1,713
Thanks Received: 3,863
Excellent question! The approach to this will vary based upon the day type. For example, on a trending day, once you've scaled out of your initial position, you'll want to find a location to add to your position. The way I approach this in an imbalanced market would be to add as price comes back and touches value. That would be the best price in an imbalanced scenario. You can then place a stop or just have a visual "line in the sand" that you do not want the market to trade through. In the example below, this would be this exact situation. The line in the sand for me was the developing POC/VWAP which was based upon RTH.
For rotational days, adding to a position should only be done at or near your original trade location unless something changes and the market breaks out. This is fairly straightforward.
As Big Mike mentioned, I'll be doing a follow up Webinar that will be centered around approaching a day type or as he explained, trading an imbalanced market vs. trading a market in balance.
