Failure to understand risk/reward and why you're losing as a trader.

Discussion in 'Trading' started by Laissez Faire, Jan 9, 2025.

  1. taowave

    taowave

    Have you backtested on dailys??

    What filters/ universe of stocks are you looking at??


     
    #181     Jan 12, 2025
  2. ironchef

    ironchef

    And some of us get an excellent education on how to day trade.
     
    #182     Jan 12, 2025
    Picaso likes this.
  3. ironchef

    ironchef

    Yes, I did, tons.

    I am convinced most good backtested method probably won't work because they can be backtested by millions of day/swing traders. For us amateurs, we need to deploy set ups and strategies that cannot be backtested, like those relying on patterns and movements.

    Those need to be tested in real time. That is why I ran two years of realtime sim. But it is extremely time consuming so I have to be very selective on what and how to pick a method to sim.
     
    Last edited: Jan 12, 2025
    #183     Jan 12, 2025
    toucan likes this.
  4. ironchef

    ironchef

    I pick a few names I own, and ETF like QQQ, e.g., sim traded one name exclusively all through 2023. Sim and live two ETFs only, in 2024-25.
     
    #184     Jan 12, 2025
  5. taowave

    taowave

    Interesting..
    I typically pick a Russel Indicie, and limited entry to 25 names based on various metrics.

    I then optimise stops and exits for shits and giggles, then run walk fowards..

    it's more for learning and getting a feel for drawdowns, max profits, MAE, MFE and applying it to option trading





     
    #185     Jan 12, 2025
    ironchef likes this.
  6. ironchef

    ironchef

    Interesting.

    My approach is I have to know that name well, like knowing my kids. What do I know, I am just a sim trader, haven't made any significant real money yet.

    I should look at your approach for options trading. Over there, I buy lottery tickets and pray. :D
     
    #186     Jan 12, 2025
  7. SunTrader

    SunTrader

    Disagree slightly. Markets are dynamic ......... mathematically.

    Squares are the key.

    side note: 1+2+3+4+5+6+7+8+9 = 45, 45^ = 2025 the year we are in :cool:.
     
    #187     Jan 12, 2025
  8. volpri

    volpri

    Some look at them in such a way and use Fibs and other techniques in their trading. In my experience trading PA about the only math I see are MMs and 50% PBs as being useful in developing techniques.
     
    #188     Jan 12, 2025
  9. ironchef

    ironchef

    ???

    Care to explain, sir.
     
    #189     Jan 12, 2025
  10. volpri

    volpri

    LOL
     
    #190     Jan 12, 2025