Thanks for your excellent presentation this week. Just one question please:
Q: Given your use of harmonic rotation at 2 to 2.5 points in the ES, do you keep at 1 point stop on all trades as shown in tables?
If 1 point max stop, entries need to be very good of course. Is that what you rely on, or have I got it wrong and you will use wider stops (price action/whatever) also?
Thanks for any comments.
Richard
Hong Kong
The following user says Thank You to RichardHK for this post:
something that does not seem to be addressed when dealing with this all in all out or scaling approach, number of trades is never factored into the expectancy.
when running the math on a sample the outcome can change dramatically.
all the examples I seem to find are great at showing single variable examples but not with trade number involved.
if one trader is an all in all out and another is an all in scale out, while the scale out trader is taking off his positions in his favor, the all in all out trader could have had three full trades in that same time/price period and the risk reward profile is very different.
considering both styles are putting on the same, largest size at trade entry, the all in all out trader will better cover his losses over time then the scaling trader. when I do this analysis I am looking at being defensive and protecting bank roll not psychology stroking myself.
this one aspect made a world of difference in my risk and reward profile. where once as a scale out trade the final portion of trade might have been grabbing 20 ticks but the all in all out would have had 4 trades in that time period which pulled out almost 8x as many ticks.
The following 4 users say Thank You to gparkis for this post:
Site Administrator Swing Trader Data Scientist & DevOps
Manta, Ecuador
Experience: Advanced
Platform: Custom solution
Trading: Futures & Crypto
Posts: 50,246 since Jun 2009
Thanks: 32,802 given,
100,027
received
Tip
There will be a Live AMA session on Tuesday, March 19th @ 12:00 PM ET.
- Quick and casual, 30 minute cap
- No prepared presentation
- Live screen sharing
- Floor will be opened immediately to questions
- Recording uploaded to AMA thread afterwards
- Attend live to get your questions answered
Does your trading change should we make new all time highs in the ES? Since there are no prior resistance levels or CLVN's and etc to measure against or target, what changes do you make if any?
