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ggoyal
Registered: Jan 2007
Posts: 628 |
12-06-08 08:42 PM
yes they do. I dont take trades with stops bigger then 3 points. and if i do get stopped out, i have a small loss.
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fearless9
Registered: Jul 2006
Posts: 2057 |
12-06-08 08:46 PM
Quote from ML_QUANT:
Stops are predetermined Losses!
You must have an exit strategy that would signal the failure of your Entry strategy. A predetermined Loss does NOT serve that purpose!
In all fairness, I need to read the words of explanation from ML Quant
regards
f9
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ML_QUANT
Registered: Jul 2008
Posts: 639 |
12-06-08 08:49 PM
Quote from fearless9:
You will need to expand this concept, otherwise I am lost
regards
f9
You must have an strategy to enter a trade right? If you do then that strategy is NOT correct unless you also know it's failure point, that point is you stop.
Here's the most basic example which will only help you understand the concept and is NOT a real strategy.
Let us assume you are entering a trade based on a 0.3% Zig. therefore you'd reverse or get stopped on an opposing Zag. Hence, while the Stop was totally Mechanical you actually practiced an entry and exit strategy.
The ZZ examle above does not work and is ridiculous as an strategy but best describes the concept of having an exit strategy based on the failure of the entry strat.
HTH
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Constantine
Registered: Dec 2008
Posts: 27 |
12-06-08 08:57 PM
Quote from ML_QUANT:
You must have an strategy to enter a trade right? If you do then that strategy is NOT correct unless you also know it's failure point, that point is you stop.
Here's the most basic example which will only help you understand the concept and is NOT a real strategy.
Let us assume you are entering a trade based on a 0.3% Zig. therefore you'd reverse or get stopped on an opposing Zag. Hence, while the Stop was totally Mechanical you actually practiced an entry and exit strategy.
The ZZ examle above does not work and is ridiculous as an strategy but best describes the concept of having an exit strategy based on the failure of the entry strat.
HTH
This strategy maximizes loses, or would only be acceptable is you are 100 percent correct on all trades.
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fearless9
Registered: Jul 2006
Posts: 2057 |
12-06-08 08:57 PM
Quote from ML_QUANT:
You must have an strategy to enter a trade right? If you do then that strategy is NOT correct unless you also know it's failure point, that point is you stop.
Here's the most basic example which will only help you understand the concept and is NOT a real strategy.
Let us assume you are entering a trade based on a 0.3% Zig. therefore you'd reverse or get stopped on an opposing Zag. Hence, while the Stop was totally Mechanical you actually practiced an entry and exit strategy.
The ZZ examle above does not work and is ridiculous as an strategy but best describes the concept of having an exit strategy based on the failure of the entry strat.
HTH
Sorry ML, I don't work with examples that don't work.
Risk.
Talk to me only in terms of risk.
I only understand risk.
Nothing else matters to me but risk.
regards
f9
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CONR
Registered: Sep 2005
Posts: 257 |
12-06-08 09:16 PM
Quote from osorico:
As you know F9, YM is my instrument of choice. Most folks who have seen me trade think I use tight stops (most of the time). 15 YM ticks or less for a stop is my "preference". Volatility has made my preference somewhat less attainable, but it didn't eliminate it! To compensate, I reduce size.
Fortunately, my methods of trade selection are not affected by volatility. The volatility (actually it is the ranges, which is not the same as the volatility) however causes the prudent (thinking) man to be firmly in control.
Osorico
That's a pretty tight stop on the YM these days. How many ticks do you typically go for profit wise?
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