Lescor, Many thanks for continuing to commit to this thread. A quick question for you. Is there a specific reason you limited your trading system to 7? I beleive you posted your trading mostly consists of 7 systems which most are RTM. Why 7, i am sure you have the capital to commit to more. Did you do studies showing that more than 5-7 systems actually can be detrimental to a whole portfolio. Basically, too many systems lowers returns by having to much correlation. I read smething like that recently. Thanks, EF
No reason, that's just how many were active enough to produce meaningful numbers. I have a few more than that, but they don't trade much or are inactive much of the time. I'll trade any system that produces a good return for the time I have to put into it. I am wary about having too much correlation though, but that isn't usually a problem.
Hi Lescor I was wondering what were the three biggest lessons or if you like the major lesson you learnt that either turned your trading around to become profitable or even very profitable and it/they still hold true today. Thanks again for your journal. All the Best John
Lescor, will you share your entry approach? Suppose, your strategy generated a signal that something interesting is going on. Would you wait for a pullback and then enter or just enter directly upon strategy signal and then average down if price goes against you? Thanks.
Trade SMALL until you've established that you have a real edge, then size up slowly. The thing that kills new guys is they come in and start trading 1000 shares at a time and blow through their money way too quick. I think almost anyone can make it in trading IF they can survive the learning curve. You have to nurse your capital along through that process, and it can be a long one. Which ties in with the saying that is at the basis of everything I do: The three goals of trading in order of importance: 1. Preserve your capital 2. Earn consistent returns 3. Earn large returns You cannot skip any steps. Newbies always want to go straight to step 3.
Sounds reasonable. Maybe you could add a fourth to complete the loop: 4. When things aren't working out, go back to 1.
Lescor, Since you do not engage in trading futures full time, yet many on ET do or aspire to, could you give us poor souls any pointers, directions, advise, clues, hints as to how to trade them profitably? I am aware of the fact that you have stated before that ES is not your forte, nevertheless, could you share your wisdom regarding futures? Any help will surely be appreciated by both new entrees as well as old salt dogs.