This thread definitely falls into that category Using leverage â not an issue Using stops â not an issue Day trading â not an issue An underfunded trading account â problem RN
Kensho, I trade a lot like you, and I like that style, but I have been unsuccessful. Also, I trade options, I don't think you do. It seems your strategy is fundamental based. Can you share with us they style of trading you have? I'd love to know since I have been unsuccessful doing things very similar to yours.
He is saying he goes to cash to avoid risk. When he is in cash he stops using stops on cash He feels that you do not need to use stops when in cash on sidelines His broker does not have a sideline charge during RTH. If he sees a trend, he automatically knows the trend is not his friend. He thinks further: "I'm in a trend and my stops are not helping at all. He goes further: I better sideline because of this trneding. On sidelines he gets no broker fees so he is saving broker fees avoiding being in trends where stips do not help and he has somewhat and a little less risk. This is 100 % backtested and NEVER loses any money of fees or comish.
I agree. You plan around black swan situations by identifying the market conditions, not by using stops. Typically, you waste as much or more due to being stopped out in a normal market a number of times as you would by using stops for that once in 3 years situation.
Didn't realize we all had millions of trading capital at our disposal so that 20% returns are plenty. Do any of us really have 30 years? Leverage is just a tool and used reasonably, it's the best tool out there.