Search found 85 matches
- Wed May 30, 2007 7:04 am
- Forum: Trader Psychology
- Topic: Times you couldn't take the trade and how you overcame it
- Replies: 8
- Views: 14704
Don't use it then
2) The Forex leverage is intimidating me. It's fun to gain big, but the losses can be pretty significant as well Being highly leveraged in FX is actually optional. The risk you take is the difference between the entry price and where your stop is multiplied by your position size - just like with you...
- Wed Nov 29, 2006 8:35 am
- Forum: Money Management
- Topic: Relationship between volatility and certainty
- Replies: 6
- Views: 8685
dispassionate, How are you measuring degree of certainty in this case? My observation is that volatility has little to do with whether a position moves in your favor or not. If you have an exit strategy based on some measure of volatility, then you will simply have position-sizes in proportion to yo...
- Wed Nov 22, 2006 10:47 am
- Forum: Money Management
- Topic: Pre-emptive money management
- Replies: 9
- Views: 13087
If one uses volatility-based position sizing then the most dangerous time for your trading is when your preferred estimate of current volatility turns out to be very inaccurate. Obvious, and avoidable, examples include scheduled conference calls for public companies. In these cases you can either re...
- Sun Nov 05, 2006 2:26 pm
- Forum: Testing and Simulation
- Topic: Reverse technical analysis
- Replies: 8
- Views: 6652
Neil, If only trading were as simple as finding a system that lost a lot of money and reversing the entries - everyone could be successful since it's pretty easy to develop something that loses lots. Normally it is the exits that make the money in a trading system, so reversing the entry on a losing...
- Wed Oct 25, 2006 9:12 am
- Forum: Trend Indicators and Signals
- Topic: Trend following from short-term signals
- Replies: 1
- Views: 6986
It's all trend following
Ron, In my opinion everything is trend-following and only the timeframe is different. Attempting to enter at a price and sell at a higher price is attempting to capture some form of price trend whether the bars are tick, 1 minute, 1 day, or whatever. (I know some option strategies are about finding ...
- Fri Sep 22, 2006 9:52 am
- Forum: Stocks
- Topic: Noisy/Unnoisy stocks PORTFOLIO
- Replies: 3
- Views: 6107
- Fri Sep 22, 2006 9:19 am
- Forum: Stocks
- Topic: Noisy/Unnoisy stocks PORTFOLIO
- Replies: 3
- Views: 6107
- Wed Sep 20, 2006 8:38 pm
- Forum: Money Management
- Topic: Relationship between bet size and frequency of trades
- Replies: 5
- Views: 6896
- Wed Sep 20, 2006 9:42 am
- Forum: Money Management
- Topic: Relationship between bet size and frequency of trades
- Replies: 5
- Views: 6896
Higher frequency trading implies a shorter average trade duration (or you would simply end up with too many positions for available capital). Trade duration is determined by how close your stops are to the current price. Shorter trade duration implies tighter stops. Tighter stops means you have to t...
- Tue Aug 01, 2006 4:39 pm
- Forum: Trend Indicators and Signals
- Topic: Overlay macroeconomics and news
- Replies: 4
- Views: 6942
I am mostly systematic, but I have found a couple of things that are difficult to code. One of them is whether an instrument is liquid enough right now to enter a trade with my desired position size. Yes I have a mechanical list of tradable instruments using market cap, ATR, ADV, price, etc. but whe...
- Wed Jul 19, 2006 4:01 pm
- Forum: Testing and Simulation
- Topic: 2 systems - 1 market
- Replies: 9
- Views: 6926
Treat as 2 separate systems
Since you are talking about 2 completely different systems with different timeframes (and trend is always dependent on what timeframe you are considering) I would treat them completely separately. The long term trend following system will generally have wider stops, smaller position-sizes, longer av...
- Fri Jul 14, 2006 12:00 pm
- Forum: Money Management
- Topic: How to determine the amount for trading size?
- Replies: 7
- Views: 8979
Eric, Helping traders develop and operate trading systems and trading business plans that fit their goals, objectives, time available, personality and tolerance for risk and reward in the context of their overall unique situation is a large part of what I do on a day-to-day basis. As I mentioned on ...
- Fri Jul 14, 2006 9:20 am
- Forum: Money Management
- Topic: How to determine the amount for trading size?
- Replies: 7
- Views: 8979
Same question, different forum, different answer
Hello again Eric, I hope you get an answer you like better on this forum :-). I think what you are looking for is something like "How about position-sizing so that you risk 1% of current capital allocated to your system based on the difference between estimated entry price and initial stop?&quo...
- Fri Jun 16, 2006 8:21 pm
- Forum: Trader Psychology
- Topic: Going against the crowd isn’t easy
- Replies: 10
- Views: 13293
My definition of 'brave' is taking action despite fear, I was afraid of spending the rest of my life in a cubicle, so I acted to do something about it. I suppose I could have been afraid of the unknown, but I never really considered failure as an option (but building my business did take a lot longe...
- Fri Jun 16, 2006 5:31 pm
- Forum: Trader Psychology
- Topic: Going against the crowd isn’t easy
- Replies: 10
- Views: 13293
Who cares about the crowd?
In many ways simply deciding to trade for a living is going against the crowd. I quit a 'good' job with a leading ECN to start my trading business and everyone I talked to thought I was crazy. In fact, spending the rest of my life in an office selling my time to an employer in order to accumulate en...
- Tue Jun 13, 2006 9:50 am
- Forum: Testing and Simulation
- Topic: Did anyone try "Trading Mind" software from Norman
- Replies: 2
- Views: 5153
Got it, liked it
I got the TradingMind software, used it, and I like it. The main caveat I would say is that it can only help you if you already have a complete and positive-expectancy trading method, but are unable to implement it accurately due to human/psychological errors or stress. The software can't make up fo...
- Fri Jun 09, 2006 10:06 am
- Forum: Testing and Simulation
- Topic: Did anyone try "Trading Mind" software from Norman
- Replies: 2
- Views: 5153
- Fri Jun 02, 2006 9:04 am
- Forum: Money Management
- Topic: Question regarding volatility and preferable stock selection
- Replies: 14
- Views: 15894
- Tue Apr 18, 2006 4:38 pm
- Forum: Money Management
- Topic: A method to monitor and adjust system's risk?
- Replies: 5
- Views: 7804
My estimate of risk is as follows: Calculate the difference between the net liquidation value of your account right now versus the account value if all your stops were hit. The difference in these 2 numbers is how much risk you are currently taking. Note that this assumes you will be able to get out...
- Mon Mar 27, 2006 1:31 pm
- Forum: Trader Psychology
- Topic: the only professional goal -trading
- Replies: 10
- Views: 17275