I don't let it get away from me. If I find myself out of sync with a market and have taken 3 or 4 losses in a row especially if they are doubled or tripled up losses and am not getting back my losses quickly then I will likely just quit for the day and do something else. Tomorrow is another day. No point in throwing good money after bad. If I am not in the groove, for at least for myself, I find it best to just stop for the day. As far as blowing up an account I do not recall ever blowing up and decimating a futures account. I am sure I would recall that, vividly. Understand me doubling up and tripling is not for revenge trading. It is a technique I use to get back a loss quickly WHEN my SL has been hit and the market is moving on a little or a lot of momentum. I figure if it moved enough to take out my SL and did so with at least a little momentum then if I can reverse and double-up it only has to travel 1/2 the distance it did in my previous loss to get me back to BE. And if I triple up in 1/2 the distance I will get back my loss plus be back in the money. However, I don't always go reverse on the doubled up. Some I will double or triple up in the SAME direction my previous loss was in but failed to make me a profit. It depends on the CONTEXT. Here is an example: Market is in at least a 20 bar TR. Price is trading in the top 1/4 of the TR. Now I know most BOs in a TR fail so I will fade them. So, I short in the top 1/4 of the TR but before the top is reached. But on the next bar or two price jumps up and out of the top of the TR on momentum hitting my SL. The momentum says I can go long and likely get a scalp on the momentum that is playing out. However, I am aware that we are now at the top of the trading range or just above it and that 80% of BOs fail and within 5 or 6 bars price will trade back down to the top of the TR or down into it. So I lost on a short in my previous trade but I will double or triple up now SHORT again betting the move up will be followed by a reaction within 5 bars and price will likely trade back down to at least the top of the trading and much of the time back into the TR Enough to make a 1/2 distance scalp as my previous loss but with double or triple size and usually in seconds I have recouped my loss and back in the money. Should the BO prove to be successful then I will dump my entire short position and go with the BO direction. Most BO ATTEMPS fail top or bottom of a TR so fading them is a viable strategy but I always now and am aware that sooner or later a BO WILL be successful, and I best go with it regardless of what my present position is in. The same concepts apply out with BO attempts south of a TR and recouping a loss on that end of a TR. But in the reverse. If trading a 1m chart and I get back my loss on the next bar or two I am fully aware there are MANY MANY more 1m bars to come in the session to make a profit. The loss is now history and has absolutely no bearing on my next trade. This is ONE technique I will use. There are others I will use in the same exact context. Like: widening my SL in that first entry so it is not hit on that BO attempt out of the top of the TR then simply scaling in or averaging down short with same size or even double the size still betting that the BO will fail. 80% do fail. Just another way or another technique to use in the same context. If all this is taking place in the middle of the TR and not the top, then I will use yet different techniques to get back a loss fast by increasing size and reversing or even going BACK in the same direction as the loss but on increased size. The basic idea is to get a loss in the past and recouped as quickly as possible so it no longer affects my trading discernment, and I can focus clearly on what is in front and the next series of trades. I mentally write the loss down as history and almost as if it never existed as I am back where I was before it happened and that usually takes place in seconds at the most in a few minutes. It IS NOT a hours long process. It is immediate! By increasing the size and seeing the momentum (for it took out my SL) I only need the momentum to move 1/2 or less the distance to get back my loss. So, I am leveraging momentum and size in my favor. This technique (of increasing size and reversing direction) I learned years ago from a trader named George Angell. I think HANDLE123 ON ET kind of uses a technique similar to this but in his own way. I recall, if I am not mistaken, that he will risk 8 points in the ES to make 1 or 2 points. If his stoploss gets hit he then reverse (not sure if he increases size) and will bet that since it traveled far enough in the direction to hit his SL then it has a good probability of continuing on and he will reverse directions and make back his loss plus 1 point or two. I just double or triple up so it has to travel LESS distance to get me back in the money. I know people think I am revenge trading but I am not. It is and INTENTIONAL and deliberate strategy and technique I am employing. Sorry for the long post but it is hard to explain this stuff in a short post. volpri
Could be a dangerous gamble if there is not a definite strategy behind and a definite context in which to employ the technique. You fixed nothing except maybe helped a degenerate gambler out. It is not somewhat of a gamble when you jump in your VW and race down the interstate 70 MPH? Could be but it is a calculated gamble and based on techniques and strategies (like staying in your lane not weaving around ...not tailgating...yes a bit of a gamble but calculated. If I were you I wouldn't so hastily dismiss such techniques as nothing but an outright stupid gamble. It is a way to get back losses quickly. Granted you have to KNOW when and how to use it or it is not a calculated gamble.
4 losses in a row and you most definitely have let things get away: 1st loss =1R, 2nd loss -3R, 3rd loss -9R, 4th loss -27R. All together you have lost a total of 40R in one day. In what world can that be described as 'I don't let it get away'?? If instead you risked the same amount on each trade you would be down just 4R for the day.
Good Morning Businessman, You are correct again. The only way to get rich in ES futures is trade +100 ES contracts per trade from the beginning Correct, trying to position size from 1 ES contract to 100ES will not work. It is possible, but will take work. Have to start off trading big size contracts from the beginning.
Good afternoon Mr SLM, How much of that $5m target have you amassed through this clickety click method...if you don't mind me asking? (I do not have any IRS friends or contacts). ps. I now have 42 Ph.D Scientists in my garage...only 8 to go ! The food and electricity bill is killing me though
No, I start small size each time unless I accidently select wrong size or forget to change size from a previous loss that I had doubled or tripled up on. Traders get in a world of trouble when they do this trying to trade big size with a small account and they blow their account. However, trading small size with a big enough account and the losses can be gotten back usually in minutes or I quit and start over the next day. It is being out of sync with the market, trading too big of size and continuing to trade doubling and tripling up without knowing when and how to do it coupled with doing so in a too small of an account that can render a loss that can decimate the account and rattle one's confidence. The same thing goes with averaging down. Most all of my trading starts with 1 contract. It doesn't matter if I am trading NQ or MNQ. There are times when momentum is so strong I will press the trade and start with 4 contracts. Or if the trade is rendering a profit I will press it by scaling up adding to the winning position. Here is the deal. The markets do not operate on purely math. There are mathematical tendencies to some degree but the markets cannot be only mathematical. Just too many variables that cannot be figured into any mathematical equation. With math I could show how to make a five million dollars selling Amway but in the real world it likely would not work out that way. Traders get in trouble and take too many losses because they rely on gurus who spout out mathematical nonsense like ALWAYS have a 4:1 reward to risk and never move a SL and keep losses small and let winners run. So, they have no real strategy employ these concepts and lose over and over again and watch their account dwindle down. Once in a while they catch a big ride that is supposed to make up for the losses but by then the losses can be so many and the discouragement and mental let down so influences their trading so much that they resort to revenge trading. Next thing they know they ARE in the doghouse, wife is really pissed, and they are eating warmed up tortillas with salt and lemon juice cooked on a 1 pot electric heater. I get mocked and laughed at for starting with 1 contract or even 4 micros when trading micros. But in scalping I use FOT. If you want to do math do this: If I trade (scalp) 1m charts and trade 4 hours of the RTH session that is 240 minutes. That means 240 opportunities to make or lose money. That is if one doesn't believe in noise but only movement in the markets. All movements are an opportunity to make money. Or lose money if one doesn't know what they are doing. So, to take 3 or 4 losses is nothing in scalping even if doubling up if trading small and have a large enough account and know how to get losses back. If I take 4 losses in a row I consider I am out of sync. So better to quit for the session. It doesn't matter why I am out of sync can be mental, physical, disturbances, too much ambient noise that hinders my concentration or whatever. Now I can opt to go to sim and practice to see if I can get back in sync. If I can then good. If not then I prefer to just quit for the session. Tomorrow is another day replete with 240 opportunities if I wish to trade as much as 4 hours on a 1m chart. As a scalper I see each bar not has noise but as an opportunity to make money. Every bull bar is a TREND. Every bear bar is a TREND. Every doji is a 1 bar trading range. Every bar has PBs and trends built into in. If I can watch the contexts (larger, intermediate, and very immediate and observe the momentum then I have 240 opportunities to trade. If I cannot "see" enough movement on a 1 min bar to employ my techniques, then I will go to a 30s or a 15 second bar. EVERY bar is an opportunity. Because every bar has movement or it would not be formed. The problem with waiting for the 2 to 4 bigger moves that usually come in the RTH session you have no certainty that what looks like the bigger move. You may see a BO than goes 3 bar strong the suddenly reverses and breaks south and continues south. So if you reverse take your loss and go south it may or may not continue and could reverse back north. By then you are confused and frustrated and in the hole losing and only have 2 or 3 more opportunities in the RTHs session to get back those losses. Whereas with scalping there are 240 opportunities on a 1m chart in 4 hours. Dial down to a 30s chart and a scalper has 480 opportunities. That is kind of math that makes sense to me. A big mis-conceptions that traders have is they have to trade big and they trade bigger than they should with a too small account and hence they blow their account. I have preached for years start small, "grab" what the market gives you (if decent to give profit and pay for commissions). A scalper can do this over and over for 4 hours session long (if his mind can handle it) 240 times if trading every bar but say averaging every other bar so 120 times and make 5 or 10 points each time in say the NQ or MNQ or less points each time in ES and MES, maintain a high win rate by using techniques that facilitate high win rate and well do the math 120 times 10 points 120 x 5 points or say just 40 trades x 5 points. Do this day after day and there is no need to think I got to trade 50 or 100 contracts at a lick to make good money. Look good techniques, coupled with paradigm shifts away from what gurus spout off, coupled with good price action reading skills together with FOT (frequency of trades) along with high win rate and it can be surprising just how many points a good scalper can capture in just 1 or 2 hours of trading the session. But you have to have peace. Scalping is not for everyone. it is frustrating to some traders to "grab" what the market gives and exit their position only see the move continue. That does not bother me one iota. I always know I can enter back in and often do. On a 5m bar I will often have several entries and exits capturing profits recovering losses all on the very same 5 minute bar. And have 48 more bar to play with should I choose to trade every bar the next 3 hours and 55 minutes. We are all different. We have to do whatever floats our boat. It has been said: If it doesn't bring peace, profit, or purpose then don't give it your time, energy or attention.
I can see the calculators humming and the conclusions with the criticisms forthcoming LOL Volpri must be trading small accounts. And yes, that would be correct. I see no need to maintain big capital in any of my futures accounts. I like trading small size and capitalizing on FOT to make profits. I have no need nor any desire to trade 100 ES contracts and make two points. All of my futures accounts are small. Micros can be scalped with even less than $5000.00 dollars in an account but I do recommend (for myself) at least $5000.00. $10,000 is better. If I am trading small size. Averaging down. Doubling and tripling up micros. If trading eminis then $50,000 is a good figure to have if trading small size and relying on FOT, high win rate, good price reading skills. It can even be pulled off with $20,000 or $30,000 if trading very small size. These, are my opinions only and not advice so I am not telling anyone to do this. There are reasons for having multiple small accounts instead of one big account plush with dinero. Think about it. I am sure you can figure out why. If a trader wants to trade 100 contracts at a lick then that trader best have a few million in his account. For myself I see no need for trading that way. I am 70 years old and don't need that sort of roller coaster ride. FOT can meet my needs. Trading small can meet my needs. Protecting my capital can meet my needs. Not blowing my accounts meets my criteria. Be at peace with yourself and your strategies. I can trade in any markets...slow...plunging...long...short...trending..ranging..regardless of what the markets does there is no optimizing any system. It is the same for all markets, all conditions, any time frame. As SML says clik clik clik. However, I make sure I am doing my cliking with purpose, intention, and desired outcome. Based on probability of the next scalping move and know what to do when wrong.
Good Morning Ricky Roma, Please watch the videos below and think about the question you ask me again. You be ashamed of yourself for asking another man how much money he has. Why the F would I tell you how much money I have. Are you crazy? You better be careful out here. Watch the videos below. Perhaps this will show the importance of keep your mouth shut, before somebody kill you and take your money. https://www.youtube.com/@thefamilytv_/videos
Hello Ricky Roma, Then you may build some good systems cause you have 42 Ph.D scientist. One person building trading systems is stupid and dumb and it will not work.