Develop and follow a written trading plan

Discussion in 'Trading' started by Chuck Krug, Feb 20, 2018.

  1. volpri

    volpri

    I am done for the day as I just have other things to do. However, it is a great day for trading These SBP trend days are good and strong trends. You just have to watch for reversal around 12 to 2 central time and be ready if they come. But as long as the trend is up and grinding it is a strong trend and great for buying PB's and selling at swing highs or just adding onto a position on PB's and holding until a reversal takes place or end of session. I think I am done for the day but I may buy a contract or two in the ES an same in the NQ and just let it run.

    Anyway 100% win rate in both emini's today. Did take a few globex trades in both but most trades were in the RTH. What looks different to you about these stats than those for other days?

    Well ...I suppose I am ending this. Important things below:

    1) To have a consistent high win rate

    2) Average win bigger than average loss (prefer it to be twice as big or more much not always achievable..at least for me LOL)

    3) Biggest winning trade larger than biggest losing trade

    4) Net Profitable at end of session

    These 4 things will keep one in profitable standings if one can achieve them. I try to achieve them every day. Some days I don't make the cut in 1 or 2 but the rest pull me out.

    I would suggest a trader learn the dynamics of PA and how to read and interpret those dynamics. Have, find, or develop tools that work in multiple senarios and be flexible. View the markets as complex and dynamic..flexible.. Not simple and linear. Think in terms of possibilities as opposed to probabilities. Using just math cannot be successfully (over the long haul) employed in the markets because they are not linear and you can never know all the possible variables and never know when at any time those that you do know are in play or not in play. And there are variables that have never even been considered or conceived (yet to be discovered) However, that said, math can be used in trading and has a useful place but trying to trade just using math based indicators will fail over the long haul IMO.

    The 4 things above can be achieved but it does take time to find out how to do it in a way that fits ones style and personality. I am a scalper hence the way I achieve those metrics above shows what type of trader I am. But the same metrics can be achieved in other styles of trading if a trader can focus on learning and interpreting market dynamics within PA and be flexible...think in terms of possibility and be prepared psychologically for trading, training oneself to focus on the process and the correct implementation of the process as opposed to focusing on the money. If one can develop a viable process and train oneself to focus on the execution of that process the money situation will probably (or has the possibility!) of working out just fine.

    Happy Profitable Trading!

    First two stats are for NQ and second two for ES

    NQ stats 1.PNG

    NQ stats 2.PNG

    ES stats 1.PNG

    ES stats2.PNG
     
    Last edited: Mar 9, 2018
    #221     Mar 9, 2018
    JefeTrader likes this.
  2. volpri

    volpri

    I took some trades in both ES and NQ for the purpose of showing how in these SPB bull trends one can trade hold longer and get a little more for their effort. So when these type of senarios appear and the market is showing this type of dynamics ...slow grind up..small PB's looks like paint drying...well these can actually be some of the most profitable senarios to trade and hold for longer time than scalping. Or adding to losing positions on PB's. Or just simply load up on PB's and go for more points. The thing is you gotta watch for a deeper PB that can happen in the afternoon. Not always but a trader must be aware of that senario unfolding.

    Here in the chart (ES not the NQ) you can see I took a long 1 contract. Added another on a PB. Added 2 more on another PB then exited all four contracts for an additional 800.00 profit over what I had done already today.

    I love these bull and bear SPB trends. many traders do not like them and prefer more volatility.

    Ok is there anything you notice about these stats that don't appear in the earlier trades today?

    Happy trading. I am definitley finished for the day...well....maybe....

    Final stats ES one.PNG

    Final stats ES one.PNG

    ES 4 points.PNG

    Final stats NQ.PNG

    NQ final two.PNG

    Final Results:
    ES NET $1512.50
    NQ NET $755.00

    My largest trade was a scaling in to ES with 4 contracts total. It was a 4 point winner. Not a knock out but not a bunt either. ROFMAO. Most of the trades were 1 and 2 contracts. So, as you can see I am not a highroller. I am a low roller. Maybe even a subway roller! ROFL I need fishing worm money and cricket money and fuel for Motorhome and my despised (by some LOL) mobile connection costs for trading. I don't need that 4 moniter 2 cpu's BS nor do I want it ..too confusing for my brain. Too much info. Too many decisions. I just glance occasionaly at the 2 MA on my chart. The shorter one just helps clarify trades especially in PB's or reversals..etc The longer one is basically there just to give me a quick visual view of the intermediate trend of the day so I can focus on long setups when price is above it or short setups when price is below it. They aren't there for defining entry and exit setups. That is done with PA and the dynamics of PA as it is being formed.

    Happy Profitable Trading!
     
    Last edited: Mar 9, 2018
    #222     Mar 9, 2018
    JefeTrader likes this.
  3. The only problem with your strategy:
    It's not scalable.
    It's a good one however, don't get me wrong.
     
    #223     Mar 9, 2018
  4. volpri

    volpri

    Explain what you mean. Thanks.
     
    #224     Mar 9, 2018
  5. If this strat was scalable, you'd have every hedge fund around knocking on your door.
    Can you move up to 10 contracts for instance ?
     
    #225     Mar 10, 2018
  6. volpri

    volpri

    size is not a problem. 10 can be traded. Are you referring to starting with 10 or scaling in to 10. As far as hedge funds LOL. They wouldn’t be interested in me ROFLMAO. And neither would i be interested in them.
     
    #226     Mar 10, 2018
  7. I think all manual traders should have a detailed trading plan. It helps with discipline, in my opinion it is easier to follow something that is written down. In my trading plan I have exact rules for entry, exit and position sizing.
     
    #227     Mar 10, 2018
    comagnum and tomorton like this.
  8. Either...what's the difference ?
    Really ? Why would they not be interested ?
    Why not go for the big money ?
     
    #228     Mar 10, 2018
  9. volpri

    volpri

    Draw down is the difference.

    Really ? Why would they not be interested ?
    Why not go for the big money ?
    1) I am too old.
    2) I am not smart enough..not enough education
    3) I don’t want the hassle nor the pressures that would come with the job.
    4) I don’t like people telling me what to do.
    5) I am more interested in fishing.
    6) I have discovered happiness is not found in $$$$. It is a useless journey.
     
    #229     Mar 10, 2018
  10. Is gut feeling such a bad thing? I don’t think. At least, you can go with it when it is warning you of an impending danger. Because, I do believe, our sensory organs become extra sensitive and catch many signals which we don’t catch under normal circumstances, when there is a danger/ risk of loss and so on.
     
    #230     Mar 11, 2018