How do you determine your entries?

Systematic is a bullshit term unless one really is

So, for a moment, let’s pretend to be;

What type of trader are you;

Trend – Range – RTM – other

What do you trade;

Trend moves – Reversals – Retracements – Breakouts

Note;

Until a trader becomes adept – it is wise to only pick one from each of the above – and stick to it

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Now;

What is the mkt doing

Trending – Ranging – Pulling back – Reversing
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Enter / trade accordingly

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Consistently identify…, monitoring…, and sticking to the above – actually causes one to become systematic…, also holds great potential to stop entries from blowing



Simply food for thought
RN

 

Lol.... no.

 

If that is so laughable howcome in over a decade of discussions I have yet to see anyone in this board discuss techniques I use to enter ?

Anyone that truly knows the price game has an idea of what I refer to.

 

Entry is the most important part of successful trading, so yes it is.

 

I can show you two options.
Option 1, pick an entry point somewhat at random (within 10 or 20 cents of your target) and place a stop at a place you think the price will not go if you're right. Size your position so that the difference between your entry and your limit only yields a loss of a pre-determined amount (i.e., bigger margin x less shares = same risk. Smaller margin x more shares = same risk.)

Option 2 is pictured. After you have decided which direction and roughly the turning point, decide what the sign would be that this move has started and set a buy order to trigger at that point. This is my preferred method when it is possible. My last trade on Thursday is a good example.

The large pattern shows a flag. The price was approaching the upper resistance line of that flag which was the likely place for a turn around. My first option was to hope it got within 20 cents of the line, then buy with a stop about 30 cents above the line. My other option, as shown, was to decide the move has started when it breaks under the small flag pattern that was forming late in the afternoon. So I set a buy order for when the price entered the circle. The stop went at the peak of the day which was only 28 cents higher than my entry. This means I could get twice as many put options because I had a 28 cent risk instead of a 50 cent risk.

I chose this method because of the very real possibility that the price could have accelerated upward first and broken out the top of the small flag late thursday before starting its descent. Had that happened, I could have gotten a better price.

I want to be sure the top HAS BEEN reached before I get in. Giving up a few cents of movement for a lot more assurance is worth it.

 

Are you suggesting that if you talked about your "secret entry method" on a forum, which represents the minuscule population of traders, that somehow your method would become obsolete?

 

Only thing I'm suggesting, is that if you got a good edge, keep using it, don't share it or sell it, just keep milking it in your own privacy.

 

I don't think you know how an edge works. An edge is not something that gives you an advantage over other individual traders. It is something that gives you a statistical slant towards growth over time.
The game is played with 5 Michael Jordans and 10,000 Joe Schmo's. The 5 Michael Jordans take money from all 10,000 Joe Schmo's. If you are only above average you will still get devoured by the giants of the game. Telling another one of the Schmo's your edge will not diminish your edge because you have not told it to a person who has the ability to change the game for you. Giving someone your edge only matters if you have become a Michael Jordan and are trying to take money from the Schmo's now or if you happen to have shared it with a Michael Jordan who is personally motivated to make sure you personally don't win. Schmos can share secrets with Schmos without consequence.
Just like a roulette. Every gambler can win without affecting other gamblers. They can all bet on 34 Red and win. The only loser is the house. The edge is your method. It's why you chose 34 Red. Trading is not like poker where there is only 1 winner and everyone else loses because they're not as good.
You are like so many people who looks at this picture and sees 5 equal creatures and thinks that each one has an equal chance of being dominant. But there's only 1 dominant and 4 set up for slaughter. Trust me. Your edge won't be diminished by sharing. If you can beat the market, great. Others can too and your edge will still be real.

 

"My question is how do you determine entry points. I'm a systematic trader and like to quantify/backtest things as much as possible but i'd be interested to hear from the discretionary guys as well."

Determine entry points from the quantifying and backtesting you do. That tells you where to enter so that the odds favor based on where you cut your losses. If you haven't done that testing then you're just playing roulette. If majority of your trades get stopped and then go to your profit, your just too early. Make your entries where your stop is gonna go.

 

Elegantly stated.