ES Journal Archive (2006 - 2008)

I know a day trader that risks 100k to make 1m. All he does is scale in over and over with an 80-90% hit rate and hit ratio of 9.

 

Good for him. What's your point.

 

So when I read all these posts about how bad averaging in is and scaling is wrong I have to smile. Just yesterday I was speaking with a trader from a fund in NYC and we were talking scaling in.

 

He figured out how to print money and he guards his way of doing it.

 

if you know what the trend bias is for the day.. even before it starts.. your hit ratio will be 100%, thats why he can afford to scale in. Time when with the trend, heals all wounds.

so the key becomes projecting out the trend bias, and noise around that bias...and place round trip orders in the dispersion field(noise).

 

I always thought Goldman/REN bought 50K of contracts with a market order.

Thanks for enlightening me.

 

Once again good for him. And why should I care.

 

Ahh OK, well, that's why I favour histogram in a big way, simple, yet effective.

 

I swear either I am reading your notes or your reading mine.

 

Because you asked.