Ok, here goes. While looking at my Shorts of the ES and ZN this morning I realized what Austin was talking about in terms of position sizing in his previous posts (in this and other threads). I had not read the cogent, exact and detailed posts he made on page 20 of this thread, as I got in late and was checking out a taping I made of Blade:The Series I made this weekend (they had a reprise of all the episodes ). After reading over it this evening, I see that he has pretty much outlined everything required for a good trading system. Here I'll list them for you: Three pillars to success: #1: viable method or system #2: trade in harmony with swing = trend bias #3: correct account management Now, I have #1 and #2, but without #3 you're only going to be at best an OK to Good intra-day trader. mymini trading also ascribed to the importance of good money management in terms of a traders success factor, and it was determined by nkhoi that the "secret of his success" probably lay in his position sizing model (please see mymini's thread for ref. if need be). http://www.elitetrader.com/vb/showthread.php?s=&threadid=67537 I had been bangining my head against the screen, attempting to get a good position model, when I was looking at my trades this morning and it all feel in place for me. Earlier this evening I was reading over this thread and reviewed in detail the posts that Austin made on page 20, and he pretty much lays everything out there, (but I hadn't read his post closely before this morning). So that's the short version. If you don't believe me, that's OK, you don't have to. You have study and practice and actually read these posts and glean whatever information you can from them regardless of how you do or don't feel about a poster. Feeling ain't got nothing to do with it. The position sizing algorithm is like trading on steroids, if you have a system which satisfies the first two criteria consistently it's going to turbo chage your system. It's not a little ironic that one day we're going at it and the next this is crystal clear to me. Best Regards, Jimmy Jam
... and this from a guy trades a black box system ... i understand austin's frustration and his rather obvious radio silence, what's the point of saying the same thing over and over again. i told you before that the pivot trend model is experimental, and it is mainly used to out line the principle of trading with the trend, i am trying to define a process by which a thread read can make trading decisions and that process is coming along. i don't use the pivot trend model to make my trading decisions. the pivot trend model is only linear, it can't give overbought/oversold status, market momentum, nor can it give potential market turns (it will if they happen gradually, but not when they happen sharply). for anyone familiar with linear regression analysis they understand what i am saying i don't use 5 minute charts to make my trading decisions. ... actually, i think i'm going through a lot of work to show people something and i'm more than tiered of you and your mr. black box, oh i'm so good at trading trash talk. if you took a 1/2 hour to actually read something you might show a little cognizance of what i am talking about or trying to do, but tell you what, in keeping with the spirit displayed by austin in giving away detailed an insightful information here's the visual paint-by-numbers version of what he is talking about.
I tried to upload a powerpoint presentation, but it wouldn't take it. Oh well. Those are just a couple of clues, PM Austin and ask'em the rest if you are so inspired. *** I have no idea, what most people are here for, but I'm here to learn how to trade, and having done so, I continue to be here to increase my skills and knowledge. This is great information, use it to your advantage. Best, JJ
Great (sleep deprived) Morning! I had a 14.5 year old springer spaniel named Madison who was practically a child. She passed away in late March, and I've teased my girlfriend Holly about getting a pair of springer pups ever since. Well, last night we took a two-hour ride (one way) to see a litter of field-trial champion bloodlines. Guess who didn't leave two puppies behind? Made $1,518 net while trading yesterday (up $3,000 by 10:30am, missed the midday lift, nothing to work with in afternoon) and then blew that away between PetSmart and the $600 apiece new additions to our family. I'm guessing Holly might spend a few more dollars on doggie trinkets today... hard to predict that one. Left the house at 4:30pm, got home at midnight, listened to them whine & cry all night, up at 6:00am... sleep deprived. I missed you guys, but was too exhausted for visiting in here :>) * <b>Jam</b>, thank you for the very kind words of retraction. That shows a lot of class on your part, you are a stand-up guy. To Version77, Stock77, mschey, Bitstream... everyone else who I said one (or more) negative word to since day one here: I'm sincerely sorry for that, and will never do so again. I reached my limit of being badgered while trying to add some beneficial posts in here. I could wax on, but let's just move on. Everything I ever read about myself in here has been cast into the Sea Of Forgetfulness. Far as I'm concerned, everyone starts our new relationship(s) from scratch. Now it's time to start the teaching / learning process... it is a two-way street. I'll get as much out of working with you as anyone else. ** I'll start a new thread (linked to this mess) that will have detailed trading info you can use to make money with. Promise you that! We'll begin later this evening with first topic: how I commonly make 100% ~ 500% monthly returns trading emini markets. You can do it, too. I'll show you exactly how & why that statement is true. I won't be covering the trade entry/exit details at all... that part is not free. But, <b><u>the most important part</b></u> is how you manage the leverage of eminis (or FX, stocks, etc) most optimal efficiency for both upside profit potential AND protection into drawdowns <b>using your current method of trading</b>. There are several parts to this that you might incorporate use in part or all of. When we're done with that exercise, you'll fully understand how & why it's possible to make huge profit gains while likewise protected from blowing out the account. Controlled, scientific efficiency of account management can take the exact-same sequence of trade results and yield +50% net profit or +500% net profit. It is all in how you manage account size per trade. Optimal position sizing for max benefit of profit AND account protection is seldom talked about. We'll talk about it here, in great detail. === The next topic to follow will be correct profit/loss ratio setups for trading. I assure you of this: many traders right here are working viable methods = systems that only lose money because of incorrect profit/loss exit paramters. In other words, many traders are sabotaging their own positive expectancy by taking profits incorrectly. The old adage of "You cannot go broke while taking profits" is absolute, total b.s. When we're done with that discussion, you'll understand why. === Third topic of conversation will be on the benefits of trading two different market symbols. Whether that is ES/NQ or ES/ER, SMH/QQQ or EURUSD/GBPUSD matters not. There are specific money-management and psychological benefits to trading two symbols side-by-side. The first discussion builds upon the second, which ties directly into the third. You will see why I've always traded two symbols side by side, the benefits of money management there versus flawed, failed tactics like scaling out of trades for partial profits from one symbol, etc. === The new thread will begin tonight, and it will have a backyard party atmosphere. Everyone who comes into our thread must grab a virtual beer, glass of wine, scotch on the rocks or soft drink of choice upon entry and pretend it's a social gathering of friends. Then we'll sit and discuss critical aspects of trading like good friends gathered around the fire, face to face. No bickering between anyone behind anonymous aliases. Capiche`? We will ignore any & all negative crap that may slink it's way inside. Our life is too short for wasting it on senseless stuff... let's invest our precious time a lot more wisely than that. Time for me to get started with the trading group. Busy all day, sleep deprived but we're having fun. See you here this evening, and get ready to learn some things real soon that right now you might believe just aren't true :>) Best Trading Wishes Austin
You are all fools for continuing to read this thread. It is clearly a ploy to get free advertising. This guy and his minions never had any intent but to con. The cons on this site are getting more and more sophisticated. I am unsubscribing from this thread. nitro
Kudos to you for recognizing and pointing it out, not just on this thread, but on the original thread. nitro
...I won't be covering the trade entry/exit details at all... that part is not free. But, the most important part is how you manage the leverage of eminis (or FX, stocks, etc) most optimal efficiency for both upside profit potential AND protection into drawdowns using your current method of trading. There are several parts to this that you might incorporate use in part or all of. When we're done with that exercise, you'll fully understand how & why it's possible to make huge profit gains while likewise protected from blowing out the account. Controlled, scientific efficiency of account management can take the exact-same sequence of trade results and yield +50% net profit or +500% net profit. It is all in how you manage account size per trade. Optimal position sizing for max benefit of profit AND account protection is seldom talked about. We'll talk about it here, in great detail.... Pure snake oil. Anybody disagree? It ain't that easy. Yes, you need a profitable method, and solid trade sizing, but give me a break - "Secrets" and abilities that can CONSISTENTLY turn 100-500% monthly returns would put you in the Pit Bull class. And I don't think Marty has anything to worry about. Marty was freakin nuts, but he would never be so dumb as to tell all his tricks WHILE he was still doing them. Here's an idea - tone it down. If you had said "I believe the skilled trader can safely make 3-5% a month, on a regular basis, with little fear of account blowout, and you would get a lot more cred. But then that doesn't sell subs. Doing just that % for a few years would make one a very very rich person. Good luck to all.
You never know where your going to find something you can use. I have lots of time to read and I doubt anyone is going to talk me into buying anything so I say post away.