Micro E-mini Madness (2% per day)

ElectricSavant · Sep 1, 2019

How did you arrive at your inverted risk to reward ratio of 2:1? Do you do this in the MNQ?

sstheo said:
As strongly alluded to in my introduction, my motivation is to help others as I help myself. Writing about and reporting on my trading truly helps ME. The accountability is so good. Too hard to cheat. (If no one is watching I take too big of risks when I just "know" what the market is going to do next. These times usually end in disaster, by the way.) But I also have felt so much frustration in trading myself. If I can say something that will help my fellow trader, then I have accomplished something really good.

My win rate has rarely been under 80%. But I will start to track it more closely for this journal.

"So with a win rate so high, what in the $%^@# is your problem?" I can hear you asking. Just the stops. I hate taking stops! So after getting up to $500 on the E-minis in one day, I might then "decide" to give most of it back by not taking the small loss. Or maybe I immediately start negative and just keep hoping for a rebound. It's all stupid and one of my many demons. I get a small "cut" and I just sit there and watch it. I watch it bleed and bleed and bleed - until I bleed to death. The "deer in the headlights" syndrome is alive and well in me. How many times have I been plastered all over the semi coming down the highway? Can't I hear the engine and the tires? Can't I see the bright lights?

But this journal is helping me. I have to take the small losses. I have to treat it like part of the game. I have to show the nay-sayers that I can do it! I owe it to myself to do well after all these years. I want to prove to the other little guys that they really can make it work if they follow a few simple rules.
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Bobiz · Sep 1, 2019

Hi Sillw10,
Do you usually RISK 2.75 points to make 2.25 points from MES/ES? If yes, what is your win-loss ratio to sustain you in this business? By the way,I love your clean charts.

sillyw10 · Sep 1, 2019

why would you wait for a stop to be hit..same as..why would you wait for a profit target to be hit..this implies you are just wishing and hoping!!

I will not say you should do this or do that..as what you do is up for yourself to decide based on your experiences..but I will say it does not make sense if you are not reacting to what is happening in front of your eyes

as for red and green..or red and blue as I prefer..blue/red on the 1 min is blue/red on all other timeframes at one particular point in TIME!!!

Bobiz · Sep 1, 2019

Hi sstheo,Is AMP futures offering Multicharts and Market Delta platforms free,and are traders allowed usage of both platforms same time without extra charge?

sillyw10 · Sep 1, 2019

ElectricSavant said:
Why? You mean mentally?
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no..a lot of the "talk" you hear about trading..is..imo..nothing more than that..talk

you should know your own emotional problems..as your life circumstances affect everything you do..trading is just a part of the big picture

it is far more important..again..imo..to know exactly why you won..or why you lost..once you know the "why"..then it can be improved on by analyzing the trades on the charts..and see if you done exactly what you were supposed to do

if you did..fine..then that is just what happens in the markets..but if you didn't..then the problem is obviously you..so..you either think you know..but you don't actually know..or your head is not clear when trading so that you can react to what you see in front of you

nothing magical or special edges..just plain old common sense and experience!!!

ElectricSavant · Sep 1, 2019

sillyw10,

But why the requirement to finish net positive each day?...If you follow your system and trade well? That is what I was replying to. If you are in this for the long term then you must set up your expectations correctly. The market has no idea of your condition.

ES

sillyw10 said:
no..a lot of the "talk" you hear about trading..is..imo..nothing more than that..talk

you should know your own emotional problems..as your life circumstances affect everything you do..trading is just a part of the big picture

it is far more important..again..imo..to know exactly why you won..or why you lost..once you know the "why"..then it can be improved on by analyzing the trades on the charts..and see if you done exactly what you were supposed to do

if you did..fine..then that is just what happens in the markets..but if you didn't..then the problem is obviously you..so..you either think you know..but you don't actually know..or your head is not clear when trading so that you can react to what you see in front of you

nothing magical or special edges..just plain old common sense and experience!!!
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sillyw10 said:
fwiw..I would not go for 2% per day..or $20 with a $1000 account..I would concentrate on being net positive every time I sit down to trade..as I might not trade every day..it all depends on the volatility and what opportunities arise

some will tell you stay at it..discipline is the key..but what about what the market does..as you said yourself..not trading at times is as good..or even better..than trading all of the time available to you

you should also be conscious that it is very easy to sit back and look at a $50 drawdown..much different when it is $500..or even $5000..so everything must be exactly as if it were full ES contract.. otherwise it is all a total waste of time!!!
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sillyw10 said:
small ones I hope

main thing is to try and be net positive each day..once that is achieved it should become easier to improve on performance
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ElectricSavant · Sep 1, 2019

This journal reminds me of my own problems in trading? The ability to focus is where I need to improve. Hopefully by watching sstheo trade I can see the techniques he uses to focus and not implore too many systems. Discretionary trading and explaining it in a journal can come off to be contradictive at times and you just got to be there to understand the decisions that are made to enter and to exit.

Getting down to trading and sticking to business is the boring side of trading. Face it trading is just button-pushing and following your system.. and it is boring. Expensive automation coding can alleviate this.

Es

ElectricSavant · Sep 1, 2019

Systematic Traders,

Bracket trading causes one to think static. If your risk/reward is 2:1 then you need a high winrate...if it is inverse then you don't.

If you depend upon a high win rate then you find yourself waiting for the set up. If you depend upon a wider bracket then you look at a slightly bigger picture. Following the the system removes wishing and hoping.

The "average win" and the "average loss" then becomes another way to look if you want to de-emphasize winrate. Some of your trades can last long and some can be short...The markets volatility would decide that no matter how much you WANT it. So the static bracket at times can be modified at the traders discretion.

Es

traderjo · Sep 1, 2019

sstheo said:
SUMMARY:
Evil Seeders?

Enter the funding companies! True prop trading firms, and then companies like TST, OneUp, LeeLoo, E2T, are now offering traders a way to have big accounts with little risk. So the problem is solved! And newly minted millionaires are buying yachts on a daily basis . . . . Not so fast. Trading is a bit harder than that . . . .

Most traders still fail, and these companies have earned the name "combine mills." It seems they all make most of their money with monthly subscriptions fees, not with the 20% they get to keep when a trader is successful. What is going on?

Most funding companies charge a recurring monthly fee and offer "resets" for a reduced fee. Lured by visions of free money, the newbie trader gets sucked in to a viscous cycle of death by degrees. I have talked with many traders who are stuck in this cycle, and have my own embarrassing firsthand experience. I have spend over $9,000 between TST, OneUp, and LeeLoo. Ouch.
uild profitable long-term traders - would promote less risky behavior. Not so.

I actually think these funding companies are offering a good service for experienced traders who already know how to trade. But except for the rare anomaly, they certainly mean a slow grinding death for newbies. On the bright side, perhaps this is still better than losing $5,000 to $50,000 of your own money on live futures account while you try to figure out the basics of how to begin to be consistently propfitable in the markets.

Could not agree more but surprised that you are not attacked for attacking these great businesses!
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sstheo · Sep 1, 2019

ElectricSavant said:
SS,

Well as long as you do not hold into the next session then you will not get a margin call. I think you said something like $500.00/contract in your previous post in the beginning of this thread. I know you said that you will post your official rules but you cannot ramp up per $500.00 as you need wiggle room. I realize you have a daily loss limit which is very good....but watch your exposure ok?

ES
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Good observation. Fortunately, as listed in my posted rules, I will not be holding through the close, because I will be done trading by 11:30 New York time. And with my $20 max stop per contract, and 5% max loss for the day, I should be good.