End of the year P+L

Discussion in 'Forex' started by Ivanovich, Dec 20, 2005.

  1. Let me guess.

    You trade in 4 to 10 lot size trades, depending on the confidence level of the move?
     
    #41     Jan 3, 2006
  2. Whoa there, I really didn't mean for you to take things personally, my comment was on the realized/unrealized differentiation which ALL of us could improve by dispelling, because there is no difference between the two at all -- ie, not closing out or reversing a position just because an open loss exists, where one would act differently if he or she were flat. That is all.

    I noted your year-end results earlier and gave you kudos you deserved. But I don't post stupid comments to be stupid and meant what I said; the more readily we drop the "unrealized" qualifier to any losses the better. Good trading and hope your new year brings the same. :)
     
    #42     Jan 3, 2006
  3. So, ALL of us could improve by dispelling the realized/unrealized differentiation? And drop the "unrealized" qualifier? Ah, not so fast. I must disagree with such sweeping generalizations. :)

    If seeing "no difference between the two at all" works for you, great. More power to you. In my trading business, I am always keenly aware of a very tangible difference between realized and unrealized P&L. Here's a simple example: one of my forex strategies is based on a key, experience-derived belief that, given sound, high-probability entries and proper position sizing (read: modest leverage combined with scaling in), I am consistently able to extract profits (as in realized P&L) by cutting profits short and letting losses run.

    Please read the last sentence again -- that's not a typo there. Yeah, it's the opposite of that beyond-heavily-promoted mantra we've all read a million times and can recite in our sleep... And I guarantee you that I am far from the only forex trader holding -- and practicing -- that belief. (Anyone interested to learn more can read "Bird Watching in Lion Country" by Dirk du Toit, for a different, unique perspective on forex trading.) Relatively substantial unrealized P&L on individual entries from time to time is an integral part of that strategy. It works.
     
    #43     Jan 3, 2006
  4. That's a decent guess.
     
    #44     Jan 4, 2006
  5. I understand why you posted what you did - even if I don't outright agree with you. But comparing anyone - whether directly or indirectly - to Coinz/Skalpz is insulting. You wouldn't like being compared to him.
     
    #45     Jan 4, 2006
  6. I'm not sure how you've actually managed to rationalize open losses as "integral" to a strategy; I'm guessing you come from the 'It's impossible to time a random market so why try' school of thought and all the weirdness it entails *grin*. But I've no doubt that whatever strategy you use, you can achieve better results once you discard the crutch of open vs closed gains and losses.
     
    #46     Jan 4, 2006
  7. Sorry if it sounded like I did, it wasn't my intention and would be a pretty ridiculous comparison anyways.
     
    #47     Jan 4, 2006
  8. No worries.

    Cheers.
     
    #48     Jan 4, 2006