Agreed, a fixed percentage of account equity protects a complete blow up from ever happening,, not sure how the one person above says one bad trade and your ruined, i disagree
You need to add MACD on your daily chart can save u from a lot of trouble Specially with breakouts and flags/pennants which are too common these days with no clear indication on continuation
Well...since you're recommending the MACD to him while he uses price moving average crossovers such as dead top (death cross) signals... Can you post a chart of his SPX that show the MACD along with the same price moving average crossover that Max had used ??? Also, do you have any statistical data about the MACD on the SPX in comparison to the Price Moving Average to show that it would have saved him a lot of trouble ??? Thanks. wrbtrader
We are sympathetic because we are in the same boat. I took on big losses doing the opposite, adding on more long at around the ATH. It got to show there are more than one way to lose money in trading.
Fear and Greed eh. Have to master fear first. Then with wins, have to master greeeeeeeeeeeeddddddddddddd..................
Macd is derived from moving averages hence its name Moving Average Cross ........ assuming same lengths are used,, main difference is macd tends to be ahead and more active but that same advantage can be a disadvantage when the market is trending heavily such as upwards gave bunch of signals that were failed signals,, but macd being a momentum/trend following indictor is one of the few that wont keep you wrong for too long,,, its useless if max or whoever uses it doesn't use it systematically in the sense of either in all the time long/short or not in at all or at least uses one sides of its signal and never overrides it,, for your second point yes thats available but once again if the person didnt use it from before those statistics are useless, in matter fact you can get those results mostly visually,, the thing gives no more than 20 signz in the whole year so visually u get a clear idea of its performance,,, daily chart S&P 500
Well, went down this road long ago, massive losses down to the bone, changed how I traded to hedging, and now hedging comes first before anything else, if can't be hedged correctly, trade not taken. The violent ups and downs went away as I am early too often, automation has help much, feel more distant now. Still have huge movements in open trades, but not in beginnings of trades and often hedge open profits expecting retracements that turn into ….collapse. Am willing to give up a little to eventually be rewarded... Before you know it, you will recover, but in the months perhaps thinking of risk more and insurance?
Automation and systemization is the key to percent human impulses,, you said something very golden,, u feel distant,, thats how a trader should always feel distant and bored,, those reinforce no emotional attachment