I need your opinion on the following....
I've started a 50.000 combine last Thursday, after 3 days of trading I locked in net over 2500... as you may know the rules: for a successful combine one needs over 3000 in profits without exceeding daily limits and trailing draw-down for ten trading days.
As far as trading concerned;I am a beginner, but my strength is money management, I blew my first combine because of the conflicting methodology of money management (combine rules vs. my rules):
I was planning everyday on money management aspect, inconsistent from previous days, it lasted 8 days 900 shy of target!
Now, this time around, I can play safe, make remaining 500 by not risking much...
or, I stick to my rules, what I am best at, give everything I have, exceed profit target by far, show them what I am capable of...
What do you think? how do I play remaining 7 days?
I appreciate and thank you for your advice in advance.
ps. I know you may think i got lucky, I am not reasonable, everything may turn upside down, etc. etc. I am all aware of these possibilities and more, but please indulge me with your constructive criticism and advice.
Full disclosure, I'm a beginner as well. Not in the exact same situation, but close enough, MM is a strength, and trust in my established edge (hours of backtesting and currently hours of forward testing). I am getting ready for my combine at the moment (i.e. further forward testing).
First good job!
I have thought about your scenario in my planning as well. My take on this question was that this is a classic Pysch issue, i.e. fear of giving it all away. Therefore deal with it as a pysch issue
Here's how I would go about it. (according to my set out plan)
1. Trust my edge! I know my expectancy and my win/loss percentage in the long run. There's no reason to believe that will change any time soon (I also know when my method doesn't work well)
2. reduce my size, but keep my scale out trading strategy.
As for practical trading advice, this week presents a big news event that I have not traded through in any of my forward testing, therefore I will not be trading come Wednesday.
I though I would answer your question, mainly to remind myself of my plan. Let's hear what the masters have to say.
Don't think hard, Think clearly. - Me
You don't get smarter IN a trade - FT71
Ever wonder how Jon Snow trades?
Follow here. Vote for Jon Snow's King of the pits! here
The following user says Thank You to IequalsS for this post:
Thank you for your reply... but the issue here is not emotions as greed and fear; I do not think "what if I loose this 2500"
I have a very simple trading system with 2 setups, no emotions, no discretion, I watch multiple instruments, when I see my setup: I execute, I have only one plan how to manage the trade. two consecutive loosing trades or tree loosing trades in a session (2-3 hours a day that I trade) I turn my computer off.I have no daily loosing $ limits nor do I have winning $ targets. Although I am allowed 5 contracts in my combine I trade max 3 contracts.
now I have to make $500 for the next coming 7 days
I do it either change my plan to scaling back and trade 1 contract to make $ 70 a day or
I trade according to my plan: 3 contracts, 1st at scalping, and move stop loss to break-even, 2nd target at 1:2 winning ratio and third contract to trail profits as the "runner" .Keep trading by increasing contract size to accommodate daily stop loss limit and stop loss for the individual trade setup until 2 consecutive losses or three losses for the day.
I am sure, first option; playing safe will result in a successful combine; but this not the way I want to trade; if I get funded there will be different rules will be in place: more "real life" rules...
Second option may result in a unsuccessful combine, but at least I would not pick up bad habits, I will not be affected by greed and fear, grinding with one contract going nowhere...and if I succeed I at least will show what I am capable of.
ps. while rumbling about this post... I guess the main reason I am frustrated is the way we, or the combine, evaluate performance: you are good trader if your results are positive ($ wise). I, on the other hand, think you are good, if your decisions are good. If you consistently make good decisions, positive results eventually will follow!
Last edited by bayaryk; March 14th, 2016 at 06:38 PM.
Reason: grammar, punctuation
Why not just go ahead and trade as you normally would?
Trading a special way to avoid risk just because you are in a Combine serves no purpose, other than to pass this Combine. Then what? Is that how you want to trade the Funded Trader Prep and the funded account?
If you are going to successfully trade as a funded trader, you will have to trade normally then, too, not be risk-averse to protect a dollar amount you may have built up. What matters is whether you can trade well, which is what you have said, too. So, my answer to the question is that you should go ahead and trade well.
People who are doing well in the Combine often do face this question, but it seems to me that the answer is sort of simple.... just keep trading your normal way. That's what you will have to do anyway, if you do pass it.
Good luck, and good trading.
The following 3 users say Thank You to bobwest for this post:
Agree with Bob. Trade how you normally trade. If you don't get through the Combine trading how you normally trade then you won't get through LTP trading normally, or make a profit live trading normally. Successful trading to me seems about building confidence in yourself and your method through being consistent. Don't start thinking you just have to pass the Combine.
For day trading, as opposed to say long term trend following, I would dispute the word 'eventually' and say this is the same thing. I think good decisions (your definition of good), give good results (TST definition of good). Not every day will be a winner but in a sample of ten days you need to be positive at the end. Remember that when live after ten days your drawdown limit becomes whatever profit you have made in those ten days so you need to prove you can make money straight off the bat with the Combine and LTP or you will just be losing their money for ten days (or less).
The following 2 users say Thank You to matthew28 for this post:
I would certainly adopt the latter approach, myself, and "play on" in my usual way.
Part of what I'd want to get out of a Combine (apart from passing it) would be to determine whether my way of trading is also suitable for TST's requirements/parameters, and changing your method at this stage reduces the degree of certainty with which you can learn that?
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I am trading as I normally would trade with my rules:
Tuesday: win-loss-loss but ended with a small but positive p/l
Wednesday: loss-loss, shut down no-trade afterwards; it was FOMC day anyway
Thursday, today normal trading as usual; last 2 trades were losers but ended the day +$100 net (have not deviated from my trading plan)
so because of the loosing day I am now down to 2200, 4 or more days to go, to make 800
In the meantime I have examined lot of successful combines, I wish I had done that before, I know now exactly how to be successful in combine: it is too late for me to take that path now, If I do not succeed this combine, I will not try the third time. In either way; pass or fail this combine, I will share a foolproof method of beating the combine!
The following 3 users say Thank You to bayaryk for this post:
With the emphasis very much on the "or more", I'd hope?
There's no time-limit other than anything you impose on yourself.
No probable reason you should get into trouble, when $2,200 up, if you just play on slowly and conservatively?
Looking forward to it, thanks in advance.
I've always thought "slow and steady" and "very low position-sizes" are probably more or less Combine-foolproof, myself.
As long as you have a genuine edge, and can exert it against the market for long enough (i.e. enough times) with the odds in your favour, consistently enough, with low enough risk? And not be concerned about how long it takes?
I've lost count of the number of people with a probable edge I've seen failing Combines through excess position-sizing and concommitantly excess risk, when "slow and steady" would have seen them through.
Good luck for tomorrow and next week.
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