Mike, I have to make a few more posts to enable my PM.
Regarding risk management, assuming a system has a 70% win rate, risking 10 ticks to make 5 ticks, assuming 0.5 ticks commission, is a break even system.
Obviously, to alter this, you have to increase the win rate, increase the profit target and/or decrease the risk.
Assuming the market is CL, where each tick is $10:
Increasing the win rate >70% is difficult, if not unrealistic, especially for less skilled traders. Mark's win rate based on historical figures is in the 70% range.
Increasing the profit target 1 tick to 6 ticks would result in an average profit of $7/trade (at 70% win rate). However, increasing the profit target may reduce the win rate, and a rate of about 66% would again be break even.
Decreasing the risk seems to be the best alternative, but even that will alter the win rate.
It appears you may be considering a 10 tick auto trail to manage this.
Have you considered using a smaller range chart somehow to fine tune entries for less initial risk?
Given your experience with the strategy, I am assuming you have considered all of this already, and I don't pretend to be bringing anything new to the table. Rather, I am just wondering what your conclusions on these ideas are based on your experience.
3 for 4 today Net 9tix or $210 Net after commissions...
Focusing on conservative RLT [8R Chart] and Mack PA trades [800tix Chart]
7:37am... GC Candle break below Red 15/50MA. Strong 50MA slope
9:04am... CL +5 ABC above Green 15/50MA - in range but busted thru
9:44am... CL -6 SEL [2nd Entry Long] count from last pivot. Strong spike n channel
9:53am... CL +5 SEL - count from Top deeper PB allowed this...
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Took 1 price action trade today for 8tix.
Looking to work this into RTL methodology.
Price Action based off Mack's method on BigMike...
7:08am... CL +8 SES [2nd Entry Short] off session low. 21 EMA strong slope.
Cut profit to 8 from 10tix for it hit 9tix twice. With TL [Trend Line] break
looking for price to revisit previous low or session low
Last edited by msull35706; April 22nd, 2014 at 09:16 AM.
The following user says Thank You to msull35706 for this post:
Hi Mike...Thanks for keeping up to date with this...have you found that the tick charts can be just as effective as the range charts...I hate those darn things...jump around way too much....additionally...have you tried the software with the ES Mini...Thanks