I trade 1 ES

Discussion in 'Journals' started by random trader, Aug 16, 2003.

  1. Can you elaborate how you apply highest-and-best-use of capital in your trading?
     
    #171     Aug 25, 2003
  2. TGregg

    TGregg

    OldTrader is talking to Random Trader here, and might be referencing a study I did way back at the begining of this thread. So, I thought I'd butt in. :D

    My study has zero missed trades, and I have every reason to expect a real life implementation of the study to also have nearly zero missed trades. You see, there were zero entry criteria. The system first looked to see if it was regular market hours, then if it was already in a trade. If it was normal hours and not in a trade, the system looked at the last trade, if it went long the new position would be a short. If it went short previously, the new position would be a long. Then it entered at either the close of the current one minute bar, or the open of the next (can't recall, and it might have been 3 minute bars).

    Sure, there would be some slippage involved. Not a lot, ES is pretty liquid. And, IMO it would be easy for a decent trader to overcome.

    I'm not saying this sort of thing is a good idea, or that RT is gonna get rich or that he's gonna go broke. Just that the "missed trade" factor is not important in the study I did.
     
    #172     Aug 25, 2003
  3. 4 point range (991-995) overnight. Waiting for durable goods number.
     
    #173     Aug 26, 2003
  4. Not much reaction to durable goods orders. Waiting for consumer confidence and new home sales.
     
    #174     Aug 26, 2003
  5. No, I was not referencing your study. I doubt if there is any study on missed trades.

    But I suppose you know that the study you conducted is not a study of Random Traders method? Random Trader has a 'bias' as I understand it. What you studied would actually reverse trades. Random Trader doesn't do that with his method.

    To study potential results of Random Trader's method you would need to know how he establishes his 'bias'.

    OldTrader
     
    #175     Aug 26, 2003
  6. 15 point range (983-998) day. GTC buy @982 missed by 0.5 points when I was in a meeting. Then it hovered around 985 for a couple hours. Decided to leave the order alone and went to another meeting. Bang, a bottle rocket. Someone must have made money today, not me.
     
    #176     Aug 26, 2003
  7. 8/26/03 Day 7

    Bias: down
    Position: open from 990 on 8/15/03
    P/L: -6 points
    Sell and hold P/L: -6 points

    No fear, no greed, lots of patience
     
    #177     Aug 26, 2003
  8. Sorry to hear you missed it. I thought the plan was to take a 5 point profit?

    OldTrader
     
    #178     Aug 26, 2003
  9. 5 was meant to be an average. This GTC buy @982 order was put in since day 1. So when I saw it's missed, I really didn't want to change it. Oh well, I escaped 1012, now I missed 982, I guess it's even now. There is always another opportunity in the market.
     
    #179     Aug 26, 2003
  10. TGregg

    TGregg

    Unfortunately, the Random Trader Bias Addin is way to expensive for me. :D

    Seriously though, I apologize for thinking you might have been referring to the study I did.
     
    #180     Aug 26, 2003