I have spent a day programming my strategy in Ninja to full automation, well my most mechanical strategy. So I did a lot of back tests and some real time tests. From back tests I could see that going for an outlier indeed can squeeze a bit more profit per car but also increases drawdowns a lot as well as number of subsequent losers. From I see if you can get smaller profit per car with less drawdown and higher win rate, then look if increasing size will be more beneficial than going for larger runners with less size. It was certainly the case for me. Thus said I still look for more win than losers and larger win than losers.

When I say outlier, I mean something that is less than the average leg for your instrument. CL moves in 35-70 tick ranges most of the time, based on how I trade, its around 50. So I use 50 ticks as my target....I get a 50 tick trade every 7-8 trades...most of my trades are trailed out at 40 or 38 or 42 or 30...something less than 50. That being said, of the ones I trailed out, 95% of them I should have left alone. It seems the best trade management is no management at all.

I do not mean looking for that one day where it runs 300 ticks and I get 275 of them. Thats not how I currently trade, although I can see a day when that is part of my plan to some degree.

Have a great weekend.

Slightly off the topic of this thread, but, on your recommendation (in the budfox thread), I watched the Kung Fu Panda movie last night. You're right, it's an excellent movie, and the relevance for trading, and anything else, is very clear.

"There is no secret ingredient." Huh. Wish I'd known that years ago.

Now I know why the name of your thread is a good choice Thanks for the experience.

Bob.

Typically, I am only interested in the initial breakout. Once in, I want to add to the position, not exit and re-enter on every leg. This is something I did for a long time and could never make it work. I never chase an entry, if you miss it, you miss it. And limit orders mean you will miss a fair number of good trades. So I just click In or use a stop market order.

Brian

There's a pretty good example a few posts back in my thread.

I never add to a trade that is red. It has to be in profit. And I try to only add if the combined entry can be break even. This is gonna vary depending on what the structure looks like.

But I think it might be easier if we just talked on Skype. I can show you easier than I can type.

Send me an email or PM. We can set up some time. Today is good for me as I'm not trading or anything else for that matter.

@PandaWarrior

Hello Brian. I was wondering if you would share what ADR indicator you are using.

Thank you,

Rick