Spectre2007, Thank you for responding to me sir. Question for you, I have a trading strategy I have been testing with about 100 trades in counting. Win rate of about 90% The method averarges about 10 ticks per trade on the win side, but the lose side is like 20 ticks per trade. It is a scalping method and sometimes I believe people look down on scalping methods. You have any recommendations for this please.
Those trades were not always managed. As I said in my Strategy post, if you take a full margin position in one direction and that happens to be the right direction, all you had to do is wait. The 2 top runners were fully loaded on Palladium, except they forgot to get out on the top on Friday morning. Before the FOMC I went fully long with 40 contracts using 4 assets. Since there was not much reaction after the announcement, I dumped the position with 3K gain. Had I waited one more day when the Trump tweet came out, the position (and account size) would have doubled. The point is, this contest was more about directional bets on a full account, then true trading. I agree with Spectre, the more trades you made and you still stayed in profit or increased it, the more skillful you were.
It means that you would not have won the contest unless you went full lever and ignored the fact that the CME did not margin call you on their contest, It is a disingenuous contest of max lever and luck.
Intraday PNL never dropped below margin requirements so never got to test that theory out for margin liquidation. I think at most draw down on open position was 4-5k, the wins kept on accruing at a higher rate than the intermittent positional drawdown. always kept it to 10/3-5 ES NQ ..in terms of technique, when volatility is high enough you can expand expected ranges for ES, and vice versa. ES likes to do ‘coast to coast’ moves. It also likes to create ‘pins’ meaning you see spikes that quickly revert. It also has conditional state at any given time. Meaning the underlying Algo is trying to run it up or run it down. If you have enough screen time with it, it’s like a living animal that’s predictable. If your stubborn and fail to listen what it’s telling you, you end up with significant intraday drawdowns. I always have an open position so always forced to keep track of it. I wake up in middle of night to make trades. I have multiple accts, minimal leverage. I also tie it all together with the other macro derivatives. Currently in one of the accts, I’m short, and it’s run up. So my brain is constantly being forced to model it. Out of all those trades, I think I experienced 2-3 losses. One was a option play that I hit flattened but sold at the spread locking in a minor loss. Regards, Chris
Posted Friday early morning: It had a top and heavy sell off on Friday, but the higher high and real top came on Monday night, exactly 2 days after I predicted it. Top was at 1978, currently it is around 1895.