Zen & the Art of The Small Account - futures io
futures io



Zen & the Art of The Small Account


Discussion in Trading Journals

Updated
      Top Posters
    1. looks_one PandaWarrior with 455 posts (1,602 thanks)
    2. looks_two tderrick with 74 posts (54 thanks)
    3. looks_3 Big Mike with 52 posts (176 thanks)
    4. looks_4 bluemele with 34 posts (37 thanks)
      Best Posters
    1. looks_one PandaWarrior with 3.5 thanks per post
    2. looks_two Big Mike with 3.4 thanks per post
    3. looks_3 bluemele with 1.1 thanks per post
    4. looks_4 tderrick with 0.7 thanks per post
    1. trending_up 182,280 views
    2. thumb_up 2,558 thanks given
    3. group 102 followers
    1. forum 994 posts
    2. attach_file 228 attachments




Welcome to futures io: the largest futures trading community on the planet, with well over 150,000 members
  • Genuine reviews from real traders, not fake reviews from stealth vendors
  • Quality education from leading professional traders
  • We are a friendly, helpful, and positive community
  • We do not tolerate rude behavior, trolling, or vendors advertising in posts
  • We are here to help, just let us know what you need
You'll need to register in order to view the content of the threads and start contributing to our community.  It's free and simple.

-- Big Mike, Site Administrator

(If you already have an account, login at the top of the page)

Closed Thread
 
Search this Thread
 

Zen & the Art of The Small Account

(login for full post details)
  #761 (permalink)
 PandaWarrior 
In the heat
 
Experience: None
 
PandaWarrior's Avatar
 
Posts: 3,163 since Mar 2010
Thanks: 6,328 given, 13,392 received


supermht View Post
Would mind share your setting of Indi?

Which one? There are several on the chart

Simplicity is the ultimate sophistication, Leonardo da Vinci


Most people chose unhappiness over uncertainty, Tim Ferris
Started this thread

Can you help answer these questions
from other members on futures io?
Tick Data Group Buy
Emini and Emicro Index
Williams Fractal (NT8) indicator - Alert function implem …
NinjaTrader
Simpler Trading - Squeeze Pro indicator
Platforms and Indicators
value chart indicator by sim22
NinjaTrader
Multidata
EasyLanguage Programming
 
Best Threads (Most Thanked)
in the last 7 days on futures io
Spoo-nalysis ES e-mini futures S&P 500
108 thanks
Most Funding Firms are a Scam
50 thanks
How many day traders are profitable?
26 thanks
Hedging NQ and MNQ 1-10...
13 thanks
Prop Firm Combines Criteria
9 thanks
 
(login for full post details)
  #762 (permalink)
 supermht 
Naperville IL
 
Experience: Intermediate
Platform: ninjatrader
Broker: NT broker
Trading: NQ ES 6E GC CL
 
Posts: 959 since Feb 2010
Thanks: 1,189 given, 660 received

Red, white, and blue line

 
(login for full post details)
  #763 (permalink)
 supermht 
Naperville IL
 
Experience: Intermediate
Platform: ninjatrader
Broker: NT broker
Trading: NQ ES 6E GC CL
 
Posts: 959 since Feb 2010
Thanks: 1,189 given, 660 received


You made it, congratulation. I trade price action too, really learn a lot from you

The following user says Thank You to supermht for this post:
 
(login for full post details)
  #764 (permalink)
 PandaWarrior 
In the heat
 
Experience: None
 
PandaWarrior's Avatar
 
Posts: 3,163 since Mar 2010
Thanks: 6,328 given, 13,392 received


supermht View Post
Red, white, and blue line

The blue is 5SMA, the white is 15SMA and the red is 50SMA

Simplicity is the ultimate sophistication, Leonardo da Vinci


Most people chose unhappiness over uncertainty, Tim Ferris
Started this thread
 
(login for full post details)
  #765 (permalink)
 supermht 
Naperville IL
 
Experience: Intermediate
Platform: ninjatrader
Broker: NT broker
Trading: NQ ES 6E GC CL
 
Posts: 959 since Feb 2010
Thanks: 1,189 given, 660 received

Thank you for quick reply

 
(login for full post details)
  #766 (permalink)
 soumi71 
Toronto
 
Experience: Intermediate
Platform: NinjaTrader
Broker: Zen-Fire
Trading: CL , 6E
 
Posts: 200 since Jun 2009
Thanks: 759 given, 271 received

Awesome progress Aztrader ! soo happy for you
keep up the hard work !

"Risk more than others think safe.
Dream more than others think practical.
Expect more than others think possible.
Care more than others think wise"
The following user says Thank You to soumi71 for this post:
 
(login for full post details)
  #767 (permalink)
 PandaWarrior 
In the heat
 
Experience: None
 
PandaWarrior's Avatar
 
Posts: 3,163 since Mar 2010
Thanks: 6,328 given, 13,392 received

Tough day for me today. I hit my daily stop loss for the first time in a bit.

What I did right:
1. Not to much. I showed signs of pulling it out but ended up giving it back
2. I got my charts marked real time.

What I did wrong today:
1. I overslept by 45 minutes
2. Was upset at myself for being lazy today and missed the huge sell off at my normal start time.
3. I allowed my emotions to get the better of me today in several areas. A) item two above. B) I felt the need to be trading today...instead of waiting. I did wait a long time but froze at the key opportunity area. And when the opportunity had passed, I felt compelled to be in a trade, even though I knew it was the wrong thing to do.
4. I sized in appropriately given the mental state I was in.
5. I started a breathing exercise just before trading a few days ago just to see if it helped. It does and I did not do it today.
6. I did not hold my trades long enough. The range chart has levels marked on it with green and red lines. I was using those for targets.....I never gave myself a chance to hit them....

Thats enough for today..

[B]Plan for next week: /B]

1. Resume normal schedule
2. Breathing and visualization exercise continued
3. Reduce reliance on range chart and focus more on the 5 min chart.
4. Embrace the possibility that my targets are actually valid and hold til they are achieved or price action signals the trade is over.
5. When price stalls out while I am in a trade, I will either resume the breathing exercise designed to reduce stress or leave the room.

Overall a good week. I ended the week net profitable which is a good thing. I also am becoming better at seeing areas to buy and sell without the aid of the indies on my chart. In some cases, the indies are keeping me out of a trade I would otherwise like to be in. In fact, that has been the case several times this week. This makes me say hmmmmmm.

So, I have a few hours today to kill and will spend it looking at my 5 min chart and deciding if I can trade just that with no other supporting charts. This should be interesting.

Cheers.

Simplicity is the ultimate sophistication, Leonardo da Vinci


Most people chose unhappiness over uncertainty, Tim Ferris
Attached Thumbnails
Click image for larger version

Name:	2011-03-18_1019.png
Views:	152
Size:	67.3 KB
ID:	34265   Click image for larger version

Name:	2011-03-18_1030.png
Views:	161
Size:	131.0 KB
ID:	34266  
Started this thread
The following 8 users say Thank You to PandaWarrior for this post:
 
(login for full post details)
  #768 (permalink)
 PandaWarrior 
In the heat
 
Experience: None
 
PandaWarrior's Avatar
 
Posts: 3,163 since Mar 2010
Thanks: 6,328 given, 13,392 received

Its a lazy Sunday afternoon. I went to church this morning, had lunch with my parents afterwards, fixed my dad's computer issues...again....and in general, had a real nice weekend so far.

I spent a few hours on Friday and also on Saturday morning thinking about my trading business, reviewing some charts and I realized I make trading way to difficult. To much thinking involved. To much analysis just before a trade.

The fact is, I recognize a decent set up when I see it. The only thing that causes me hesitation is if I perceive the trade as having to much risk. There is an easy cure for this. More on this in a minute.

So I decided to simplify once more. I have what is essentially a pull back strategy and a decent way to figure out when to enter. I have struggled this last week with the exits. To soon, or to late. I have a fix for this as well.

The five minute chart is great, but after last week, I decided it was a tad slow for me. I would like just a few more set ups each day especially early on in the session. So I looked at a three min chart as well as a one min chart. I opted for a three min chart and the range chart. I think I should get 3-5 set ups each morning and that is enough.

As for targets, I have been wanting to capture bigger moves. I see the larger targets. I want them. BUT this has led me to a place of uncertainty in terms of when to exit. I found myself in a state of panic when I had 20+ ticks of profit on the table and knowing I was gonna sit through a pull back to get more. I found this emotionally hard to take. I am an all in all out trader. Sitting through the pull backs to achieve 50 ticks on most days is not what I want to do right now. I am willing to sacrifice the 50 ticks in one trade for the 20 ticks initially for the sake of emotional stability. So for the foreseeable future, I will be using fixed targets. I have accepted the fact I will not be getting a 50 tick move. Instead, I will opt for fixed 20 tick targets and look for 2-4 of these each day. I recognize the increased risk this puts me at in terms of being in the market more often. I accept this.

For risk management, I will opt for the entry bar top or bottom as the stop, if its 20 ticks or less, I will use 2-3 cars. If its 20+, I will use 1 lot for the trade. Biggest stop I will entertain is 30 ticks. This puts my risk reward ratio at 1:2 and I accept the inverse of this situation. Worst case scenario, I have 4 trades each day of one lot each. Assuming 100% success (I know, nothings 100%) that is $800 in profit. Assuming 75% success and a 30 tick stop on the loser, that's net of $300 and I can live with that. At some point, I will be able to do that with 2 lots on the 30 tick stop trades and that works out to a $600 net. So best to start small and work up.

With regards to the entries, I have decided to take three kinds of trades, all of which I see fairly easy in real time. These are labeled on the chart as A, B, C and described below. There is a fourth area of importance. The Transition Zone. This area is labeled on the chart as TZ.

A) Trend Trade. (TT) Defined as TOUCHING the 50SMA and closing in the direction of the larger trend. This generally represents a significant pull back in the trend and usually the lowest risk trade possible in the sequence.
B) Counter Trend Trade. (CTT) Defined as closing beyond the 15SMA counter to the prevailing larger trend as defined by the 50 SMA. This must have PA to support.
C) Trend Continuation Trade (TCT) Defined as a trade that continues the prevailing trend as defined by the 50SMA but does NOT touch the 50SMA. For me, these are the most risky trades as there must be support and resistance nearby, I must read that support and resistance well and have read the most recent price action perfectly. Therefore, there are more variables to account for and consequently, more room for error.

I am making a change from candles to bars on the time chart, I can see the open and close better with them. I have also introduced the Reversals indie to help me visualize the price action and key turning points. This is not needed for trading but does aid me in visualizing PA.

I have removed the 5SMA from the charts. They are not needed for the kind of trading I feel myself beginning to embrace.

This represents a sea change for me in terms of clarity of strategy and tactics. My entire trading career, I have been unable to define a trade in these simple terms. I have been striving for this kind of simplicity for a long time now and the last couple of weeks watching the 5 min chart play out has convinced me this is the way to go. I have elected the three minute chart for two reasons. 1. More setups and 2, smaller stops. Otherwise, I would be using the five minute chart. One day I will move to the five minute and shoot for fewer trades with larger targets. For now, this will suffice.

After having gone through this exercise and the last couple of weeks of relative success, I finally realize down deep in that place we refer to as our "heart", that I am now at a moment of opportunity. The opportunity is this: I can continue down the Holy Grail road or I can recognize the only obstacle to true success is me. This weekend, I received my copy of "Golf Is Not A Game Of Perfect". This book was a game changer for me.

The lessons presented within its covers are more than appropriate for trading. I recommend every trader reading this thread to obtain a copy and digests its lessons as it will provide nourishment for your trading soul.

As a result of reading this book, I have the following commitments to make:

1. I will spend 75% of my time on the mental aspect of trading vs the tactical or mechanical aspects of trading. This means more attention to my diet, my physical health, my mental well being while engaged in non trading activities and in general, making sure my mind is fit to trade. I will also engage in intensive visualization. I do this while playing golf, why not in trading? The author recommends it to his pro tour players and if its good enough for them, its good enough for me. I no longer care about the outcome of each individual trade. I recognize the impossibility of 100% success. I also recognize the statistical probabilities of my edge providing a nice living over time. Each trade will stand on its own. But each trade will contribute to the overall edge being defined over time.

2. The 25% of the time I do spend on tactics or mechanic, I will spend on the money activities. Exits...can I extend them without sacrificing my emotional stability? Money management. Position sizing, can I take more risk in certain circumstances? These things will require better record keeping. I will need to know the win rates of each of the three kinds of trades listed above and the average risk per trade. I will also spend a small amount of time each week looking at the tools....my chart set up, the indies and their settings. But this can only be done on Friday's after closing and only if I have a losing week. The reasoning here is this. The settings may need to be adjusted to compensate for volatility or some other unforeseen circumstance. Little if anything should be changed frequently. I anticipate making very few changes over time in this area.


Tomorrow begins a new season in my trading career. One of simplicity, one of focus, one of goal driven discipline.

Win, lose or draw tomorrow, I am excited.

Simplicity is the ultimate sophistication, Leonardo da Vinci


Most people chose unhappiness over uncertainty, Tim Ferris
Attached Thumbnails
Click image for larger version

Name:	2011-03-20_1628.png
Views:	162
Size:	106.3 KB
ID:	34391  
Started this thread
The following 8 users say Thank You to PandaWarrior for this post:
 
(login for full post details)
  #769 (permalink)
 papa15 
Wake Forest, NC
 
Experience: Intermediate
Platform: Sierra Charts, Investor RT, Ninja Trader
Broker: VanKar
Trading: NQ
 
papa15's Avatar
 
Posts: 527 since Sep 2009
Thanks: 583 given, 1,246 received

AZ
I don't know how you currently track the results of different trades but the best way I have seen is to use Shodson's spreadsheet. He posted it in post 543 on Jan 1st of his thread. It took me a few minutes to modify it from tracking his items to mine but it will save you a whole lot of work.

I wish you the best as you simplify. I am on the same quest and think I have something that will work for me.
Papa15

Visit my futures io Trade Journal
The following 3 users say Thank You to papa15 for this post:
 
(login for full post details)
  #770 (permalink)
 PandaWarrior 
In the heat
 
Experience: None
 
PandaWarrior's Avatar
 
Posts: 3,163 since Mar 2010
Thanks: 6,328 given, 13,392 received



papa15 View Post
AZ
I don't know how you currently track the results of different trades but the best way I have seen is to use Shodson's spreadsheet. He posted it in post 543 on Jan 1st of his thread. It took me a few minutes to modify it from tracking his items to mine but it will save you a whole lot of work.

I wish you the best as you simplify. I am on the same quest and think I have something that will work for me.
Papa15


Thank you. I downloaded the spreadsheet and will use it. I will also buy the other one he recommended in that same post as I have been looking at it for some time and have not really needed it until now as I did not have set ups that I could name and see the same way over and over. Now I do and can finally use one of these kind of tracking sheets.

Simplicity is the ultimate sophistication, Leonardo da Vinci


Most people chose unhappiness over uncertainty, Tim Ferris
Started this thread

Closed Thread

futures io Trading Community Trading Journals > Zen & the Art of The Small Account


Last Updated on July 25, 2011


Upcoming Webinars and Events
 

NinjaTrader Indicator Challenge!

Ongoing
     



Copyright © 2022 by futures io, s.a., Av Ricardo J. Alfaro, Century Tower, Panama, Ph: +507 833-9432 (Panama and Intl), +1 888-312-3001 (USA and Canada), info@futures.io
All information is for educational use only and is not investment advice.
There is a substantial risk of loss in trading commodity futures, stocks, options and foreign exchange products. Past performance is not indicative of future results.
no new posts