Top 3 Reasons Traders Fail to Reach Advanced Levels - A Manager's Point of View
|April 6th, 2016, 11:49 PM||#11 (permalink)|
Buenos Aires Argentina
Futures Experience: Advanced
Platform: NT, MT4, Sierra
Favorite Futures: S&P, Bonds, Crude, FX
Posts: 218 since Sep 2014
Thanks: 35 given, 194 received
Generally the idea is to run very specific drills to fix specific issues. So for example, if someone is struggling with spread trading, then we might run an exercise re-balancing the ratios as the spread widens or narrows. Plus they have to do it all by hand without computer assistance on the calculation. It's like practicing math without calculators and only using calculators when you're proficient at the principals.
If they're struggling with maintaining delta neutral positions, then we shut off all the other data inputs and distill down to price, delta, gamma. Then they forecast out delta positions at certain prices for the trade plan and practice making adjustments to achieve a certain net delta and/or gamma position.
If the challenge is pyramiding a position, then we might run an exercise trading only in one, and practice taking profit and re-investing profits by re-entering with larger size. We'll run through random price charts for both trending and non-trending markets, and mix in even counter trend markets, etc, etc.
Anyways, the point is to focus on one specific skill set instead of multiple issues, for skills development.
For staying sharp, continuing education is always good. Keeping up with new software is always important. Even I learned about a few new API developments and new offerings from a few vendors today that I wasn’t previously aware of, net tricks while using TT, etc.
For just staying on top of the game (rather than specific skills improvement) One last exercise, which is analogous to playing a full scrimmage, is to re-trade the certain economic conditions all of the fundamental data releases and news sound bites that come through. So for example, let's say you're forecasting the ECB is going to announce a large QE program. So you go pull up the various dates in 2014 when the BoJ announced a surprise QE program, re-trade that week tick for tick. Re-trade the announcement of the QE3 program of the Fed. Trade the non-announcement of QE3 by the Fed, etc.