I use very wide stops and don't day trade. ....hahaha....I'm just here for the contest. I'd actually want to join if it were forex....
I talked to profit. I take back most of what I said . It's a systematic method whcih is good. Plus I see how it does work a majority of the time, especially with the way he does it. Someone new to the game would have a real difficulty with it. My opinion is that.... In addition, he's right it's only going to work on the indexes with consitency. It's probably not because of the data set though. It's the result of what a larger data set does to produce a more reliable setup for this.
Most people cant really understand what he is doing and how it would work. I like his approach since it is quite original. When I look at his chart we see the exact opposite thing. I enter into position late and get out late. He gets in early and out early.
Profit, I have no doubt that what you are doing works, for the market & style you are trading. I understand your basic concept and for the market you are trading you have to let your trades breathe and in doing so, you increase your win probability and therefore your profits. And knowing when you are beat by the market seems simple to me on your system, and thats when your losing trade hits a critical percentage of your account you are not willing to absorb or another indicator that tells you its time to get out, more than likey an oscillator that is giving you a heads up the market is turning against you. I appreciate your aggressive approach in taking control of your trading than letting the market take control of you. The great thing about trading is there is many ways of trading as there are styles of trading, and it cracks me up that some say that trading has to be done a certain way to be successful/profitable. Hey, my opinion is if it works for you then by all means do you and laugh all the way to the bank. Then again, why go to the bank, that's what wire transfers are for and laugh in your computer chair......lol
You mentioned that many times you'll build a larger and larger position as the market is moving against you. What information do you look at in deciding the market has no intentions of reverting to the mean?
Have you never heard that Market Makers and locals buy on the way down and sell on the way up. Think about it and you may understand how professional traders make their money.