Yes. Pareto holds for many processes. Especially power law, natural, phenomenon. @qwertyjjj I wasn’t talking about PnL but opportunity. There is a difference between x and f(x). In principle you abstain from arguing, As you’d abstain from trading, If you don’t understand. Not saying you can’t understand. But you jumped too quick into a conclusion. You’re lucky I am not a tiger otherwise you’d be dead.
True re Pareto as in 20% of my trades generate 80% of my profits... Literally lol re tiger, thx... my wife is looking at me like wtf
excellent post... just go straight to zero carb or carnivore diet and your BS will be at 80 +- 5 all day
Very interesting! I was not aware. What about those of us who eat low-carb and/or are into intermittent fasting? I'm very active, excercise and eat healthy. Usually, I don't eat more than 3-4 meals per day. With the exception of pre/post-workout, I generally eat a low/moderate carb diet. Regardless, what you're saying still does seem to support the case for not trading the full session as you're not likely to sustain top level performance over the entire sessions. Particularly if you're a discretionary day trader where you're making decisions/observations continuosuly throughout a session. In the recent market turmoil - all this is turbo-charged with a 30 minute session exceeding what's normally done in a standard 6 1/2 hour session.
Hi guys, Thank you for all the comments. I'm a bit surprised to see so few, if any at all, who advocate using a daily profit target/time based target or some other rule to protect profits on any given day. Equally - do you guys not believe in daily loss limits? Because if the logic is that each trade should be taken to realize the long term edge of a system - there's no reason to arbitrarily stop trading after being down a certain amount of dollars or N trades in a row. In theory - I agree with everything which is said below. I even wrote it myself in my opening post. I'm well aware that volatility and opportunity fluctuates. I'm well aware that these last weeks have offered as much opportunity as you normally get in 6 months. I'm well aware that theoretically, you should trade the full session to exploit your edge and not sell yourself short/leave money on the table. But all this assumes top-level expert playing in the markets and being able to sustain that performance/concentration over 6 1/2 hours or more. Sadly, I'm not there yet. And I'm wondering if it would be better for me or someone like me to focus on daily profitability/consistency instead of maximizing returns with the additional risk that entails. Regards, Howard
You don’t have to trade just because you’re in front of your screens. Train yourself to put full days in and watch the markets. The more time you put in the better you will be. Just like anything else.
Ah. Maybe I wasn't clear on that in my first post. I am putting in full days and then some. I'm not suggesting to turn off the computer and do something else as soon as I'm in profit. I'm suggesting to either a) Stop trading completely after reaching a profit goal - while continuing to watch the market and/or simulator trading the rest of the session b) Decrease size significantly after reaching a profit goal, but still trading the rest of the session. Example being if I normally trade 1 ES - I can then trade 1 MES. c) Another alternative could be to have a peak-to-bottom drawdown rule to ensure 'green days'. For example, if I'm up 5 points - allow one more trade with a maximum risk of 3 points to ensure the day ends green. If stopped, I'm up 2 points for the day and still profitable. The idea is to become more consistent on a daily basis first, but in time grow into actually trading the full session profitably.