Averaging up/Averaging down? Seems pretty simple to me now. Often we hear comparisons of trading to starting any kind of business and the failure rate of new enterprises. I think a similar comparison can be made to expanding a new business. If it is successful, then expand, If not why would you want to open another store, add more people, but more equipment, etc. If the original premise of a business or trade does not work out, I can understand allowing a little room for a turnaround, but that's it. Throwing money into a losing business or a losing trade is just plain gambling just to avoid the pain of accepting the obvious. When I started trading many years ago, I would often widen my initial stop as the trade moved against me, in order to give the maket more time to understand that I WAS RIGHT..........I was stupid. FWIW
Now we're talking! Yes, I (along with many others on this thread, I am sure) personally would like to know how you designed your system, not to have the system itself. As many a more experienced trader has found that they just can't move fast enough when they see multiple opportunities across different markets If we are taking the thread in the wrong direction Anekedoten, please let us know and we'll move the party to the next thread (but I know you are also working on automating parts of your system as well). So yeah, gohstrader, if you'd like to share how you set your system up, we're all ears man, we're all ears. Good trading, JJ P.S. That's the beauty of trading with the trend, managing risk conservatively, and going for outsize reward when the conditions setup, you can grow your capital exponentially, with absolutely minimal risk.
Seems like you've been doing your homework. The victory will always consistently go to the one who is more prepared vs. the one who is not. In trading and pretty much every other competitive endeavor. Great real world analogy. Actually it's all in the hard wiring, and you have to overcome your basic instincts to learn to trade well (notice I did not say "trade good" ). Here's a quick read on the subject matter that someone posted on a blog ... Quick Read ... and here's a more extensive read from a book written by Terry Burnham. Mean Markets and the Lizard Brain Notice the title of Lesson #3 ... Losers Average Losers, duh. Good trading, JJ
Reading over the excerpts from the book (Mean Markets and the Lizard Brain) you can see why I made this comment in an earlier post. This style of trading requires mastery of yourself, as well as mastery of the markets. Good trading, Jimmy Jam
Always glad to help where I can. The top paintbar is simply comparing itself the previous bar close. The bottom bar is a 12/25/3/3 SMI crossover. the SMI (Stoch Momentum Indicator) basically defines the short term trend while the top paintbar gives u a precise entry. I use this along with an automated buy/sell program with a fixed/progressive tick stops and exits. If you notice the chart I am using either 0.5 or 1.0 rangebars candlesticks. The reason I do this is because it always affords me the opportunity to trade profitably even while a choppy market with whippy 1,3,and 5 minute bars are stopping people out. There are those that will tell you that sure, you can make money this way, but it will cost u a fortune in commisions. I have to laugh at them after I show them that trading 6-9 contacts at a gain of .50 to 1 point a car far outweighs the loss of the same contract one might trade in a whipsaw market. At least this is what works for me. I also now enter 3, 3, and 3 cars and scale out at pre-determined tick level depending on the market trend for that day and it works for me and my trading personality. Good Trading to you and hope this helps. -GT
nice way to scalp, GT, in this fast change market, I guess this is only way to make money by scalping a few ticks. but hardly do it manually. I have tried some short-term momentum indicator to scalp YM manually, doing ok, but can't click mouse quickly enough. thanks for sharing your method -jet
It's nice to see the sincerity of this thread, so thanks Anek and the rest of you guys/gals. I have received over 38 PM's asking for code etc in the last 30 minutes. I will post both the simple SMI crossover code and the other code for the top pane in the chart posted earlier here so I don't have to spend so much time replying to all who took the time to Pm me. The top pane code which I have no name for (feel free to name it yourselves, but a guy by the name of mjh whom I belive Anek knows gave it to me. MJH also took the time to help me after I blew up my first account and taught me more about myself and my fears than anything else) I will not provide the .dll and some other stuff for my autotrading due to the fact that it's quite complicated nd is related to software called WealthLab. I also did not develop it and it was given to me with the premise that I ask the person who wrote it (mjh) before I ever handed it to anyone. So if you ask him I'm sure he would provide it to you free. Paintbar code top pane: if Bar Open[1]<Bar Close set color to Lime if Bar Open[1]>Bar Close set color to $8080FF Paintbar code bottom pane (SMI Crossover) if (Stochastic Momentum Index(12,25,3,3).Main < Stochastic Momentum Index(12,25,3,3).Signal) and (Stochastic Momentum Index(12,25,3,3).Main[1] < Stochastic Momentum Index(12,25,3,3).Signal[1]) set color to $8080FF else if (Stochastic Momentum Index(12,25,3,3).Main > Stochastic Momentum Index(12,25,3,3).Signal) and (Stochastic Momentum Index(2,25,12,5).Main[1] > Stochastic Momentum Index(2,25,12,5).Signal[1]) set color to $80FF80 it should also look like this in QT: <a href=http://www.freeimagehosting.net/><img src=http://img3.freeimagehosting.net/uploads/25ca4567c2.png border=0 alt="Free Image Hosting"></a> Please note that when you post the code into QT as a new paintbar for the SMI it will see the native SMI (lines that look like a fast stochastic) You have to open that indicator and make sure that the settings look like this exactly otherwise the SMI paintbar won't show up: [Good Trading to all of you. -GT
Coming out of the woods for a quick comment since I'm relaxing and taking a break from trading and the journal to spend quality time with the family. This thread, my journal, is all about sharing so feel free to discuss anything that heads into that direction. Even if your method goes against AHG or uses 10 indicators as long as it is in the spirit of sharing you got my blessing. Any experienced trader knows there are possibly an infinite number of ways to trade profitable so an open mind is necessary. The one thing I ask is that remains civil. Keep the spirit of sharing, Karma is a powerful thing, I promise you, the more I share the more good things I find around the corner. Not only in trading but in life itself. I am at the pinnacle of my life as it is now and I'm sure there are more good things to come as long as I keep walking this path which I recommend with all my heart. Thanks. Anek
Thanks for the info Gohs, I know I was one of those that immediately sent you a PM regarding the autotrading. That's because I have a system which has more profitable opportunites than I can keep up with as a manual trader, as well as because I'd ultimately like to share it with other friend and family members. You've given us some great leads. Great trading to you guys, JJ