ES Journal - 2019/2020

Discussion in 'Journals' started by Buy1Sell2, Dec 19, 2018.

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  1. man, you are taking losses even though you are right in the direction. Hedge, don't use STOPS if you feel the entry was good...

    b entry 3,052
    s hedge at 2,940 with a trailing stop
    at the 2,892 pivot your trailing stop kicks in and you take profit at 3,007 (+67pts) on the hedge
    at around 3,100 you take profit on the original buy
    With a hedge, you made 115pts, with a STOP you lost 115pts.
    If there is no pivot, you then marry the hedge and take the loss the stop would have given anyway.

    By hedging, you get a second bite at the apple without increasing risk i.e. your max loss is 115pts but you get a 2nd chance to make a profit instead.

    Edd Thorp: master hedging and scale-out of losses
     
    Last edited: Mar 4, 2020
    #14121     Mar 4, 2020
  2. Huyang

    Huyang

    Very nice. May you please tell how you enter the trade? limit entry or stop entry? thank you very much.
     
    #14122     Mar 4, 2020
  3. Noone123

    Noone123

    Why not short at 3100 or 3150?
     
    #14123     Mar 4, 2020
  4. vanzandt

    vanzandt

    Nooooo, no no.... I say the exact opposite. Trump would beat Bernie by a landslide of epic proportions. Biden's got a chance. The last piece of the puzzle: https://elitetrader.com/et/threads/...n-for-dem-nominee.334633/page-10#post-4948732
     
    #14124     Mar 4, 2020
  5. Buy1Sell2

    Buy1Sell2

    The reason for this is not that the market thinks Biden can win the general election, but rather than Bernie now can't win it.
     
    #14125     Mar 4, 2020
  6. Huyang

    Huyang

    May you please use a chart to explain the hedge? I am not sure about those numbers. Thank you very much.
     
    #14126     Mar 4, 2020
  7. NQurious

    NQurious

    Short average price 3043.50 target 2911ish

    EDIT: I have a limit to take some off at 3031
    EDIT: 31.50
     
    #14127     Mar 4, 2020
  8. NQurious

    NQurious

    Filled on the 31.50's ... will access at 2973's and 2934's for sure, as well as PA along the way. But target is 2911's
     
    #14128     Mar 4, 2020
  9. speedo

    speedo

    BTW, the book referenced by NQ yesterday re 50% retracements is by Edward Dobson
     
    #14129     Mar 4, 2020
    Laissez Faire and NQurious like this.
  10. I have a short bias for the day too and will hold that for as long as we stay below 3050/3058.

    That said, I know that 3030, being a key technical level, can very well end up being a bottom for the day. So, a bit cautious here.
     
    #14130     Mar 4, 2020
    tenny1886, Builder17 and Sekiyo like this.
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