1% a day and MM

Discussion in 'Journals' started by tango29, Nov 10, 2003.

  1. Tango,

    Good Morning! I am in agreement on the risk side. It seems to me that you're already using plenty of leverage & doing well. You started with 15k & 2 contracts, & will now be up to 30k & 6 contracts. Therefore only have doubled your account size while tripling your position size. This IMHO will invite disaster sooner or later.

    Correct me if I'm mistaken, it seems you're shooting for 3 tick moves or better, while using a 3 tick stop initially & getting out quicker if it doesn't appear to be working. Having a 30k acct. trading just 5 x 31.25 x 3 = 468.75 w/o comms., thereby giving you exposure of 1.56% of capital. When the trade goes your way as you seem to have a high win %, your goal is met or exceeded just with 5. You could have an account of 40k-45k & still be doing goal.

    The downside is @ 5 or even 6 x 31.25 x 3 = 562.5 w/o comms., the risk is now 1.56-1.875%. The reason I mention the risk % is it's getting beyond what I've learned for trading leveraged instruments, which is .25-1% of trading capital per trading position. Then the only way to meet this criteria on a 1:1 ratio or close is to reduce position size & widen stops, or increase size & tighten stops. It's apparent the 3 ticks you're using with your ability is working well thus far.

    It'll be even KEWLER to see you succeed. By taking it 1 day, 1 week, 1 month @ a time, just as you've been doing! You're off to an excellent start! Why increase the risk that much, & the risk of having your progress derailed when that outlier pops up? It's not a matter of if but when? This is all just food for thought. Again I've enjoyed this VERY MUCH thus far!

    Take Care & God Bless! Kelly:)
     
    #311     Jan 15, 2004
  2. tango29

    tango29

    We'll see, slow move off news. Went with trend and up thru a resistance point .
     
    #312     Jan 16, 2004
  3. tango29

    tango29

    ^17.
     
    #313     Jan 16, 2004
  4. tango29

    tango29

    to breakeven and give it a little leeway.
     
    #314     Jan 16, 2004
  5. tango29

    tango29

    ^14-13 area. The break from this area up again would have been an area where I would have added back to the intial position.
     
    #315     Jan 16, 2004
  6. tango29

    tango29

    at ^16. Could have held, but money in the bank is the best money.
     
    #316     Jan 16, 2004
  7. great trading tango. do you use any news feed for the 8:30 trades or is it strictly based upon price action???? thanks
     
    #317     Jan 16, 2004
  8. tango29

    tango29

    726, and Unless I listen to voices of reason that have posted here, I will be going to 6 contracts on Monday. I understand the idea behind % based risk, but I also am looking at catastrophic risk as this is an experiment and is definitely risk money. At 6 contracts a full point move on bonds is worth $6000. At this point it would be a 5 pt move against to wipe out this account , or force me to cover from other money. Insane outlook, YES, but I am going with it. As of now the next contract doesn't add until account hits $46,000, so I have a ways to go for the next add. In looking at this and my normal trading I am still ahead, but obviously working all day to do so, and sometimes spend most of the day giving back what I made. At this point this has worked best with bonds, but I would like to use other markets and maybe expand the goal that way. Trade a little longer, but not all day, unless it is necessary, and hit a bigger goal.
     
    #318     Jan 16, 2004
  9. tango29

    tango29

    Cnbc on usually, but otherwise mostly based on price action, but I have the news reports and times written down so I know to expect a move possibly.
     
    #319     Jan 16, 2004
  10. tango29

    tango29

    uptrend overnight, but real tight range, so willing to go either way at this point. nevermind..sold 112 ^10 as typing on break of ^11
     
    #320     Jan 20, 2004