Hi Big APPL, No need to reset since I now have $1,700 of cushion before my "non trailing drawdown" hits so I still have plenty of time to hit my profit target before the next monthly subscription fee. Yes, I need to stick to my 10-point SL. Amazing you can do that! You must be a master Jedi. LoL I will absolutely make it,,,,no other choice. """NOC"""
Hello Fonz, I like that 125% of profit concept. Thanks for the encouraging words! Too close to not make it -- so I will make it
Hey Laissez Faire, I started to notice something weird during the middle of the week when I started fighting back from deep losses so props for picking up on that subtleness -- you seem to be an tenured trader from just that comment. Impressive. I need to be more diligent with my 10-point stop loss since I am trading off a 1-minute chart. I am not a particularly smart person...went from super God complex to bit more humble thanks to my struggles and strife as a trader on my "life journey" so I need a kick-in-the-teeth moment like eviction or homelessness. I know that I will succeed but I am also not afraid of "experiencing" life - both the good and the bad. I consider myself a more well-balanced person on behalf of experiencing some of life's worst shit scenarios and am ready for anything. Stay tuned. Thanks for the nice sentiments
There's an excerpt from Marty Schwartz book which I've posted a few times here on EliteTrader. In my experience - it's all very true. Usually, the best way to deal with a larger-than-normal loss is to take a day off or even more. The idea of making back losses can really mess with your mind and your trading. I sincerely believe it's possible to get 80 % + winning days. Maybe some can even make 95 % +. But you absolutely have to accept that there will be losing days and losing trades. Either you f''ked up or your methdology simply wasn't right for that particular day. Or maybe the probabilities simply didn't go your way, i.e., you can take a great trade and still lose money. Nothing works ALL the time. When you're not willing to accept a losing day or a losing trade - that's when you're in trouble and can rack up some major, major losses on a single day. Joining the CME gang
Ive been there as well. Holding onto losers too long or adding on hoping for a rapid move in my direction to get me out. Also hated trading with stop losses as I would get stopped out quite often At least for me the biggest positive change was being more patient and waiting for better entries —using longer term charts such as 60 min and 240 min and daily and using major intraday pivots (or weekly pivots) for entries and eliminating constant random trades just to always be “in the action”. I still use stop losses but with better entries stop losses are not as much of a problem as they are with random trades
Great insight. In addition to the 10-points stop on a maximum of 2 ES contracts, I am also going to only give myself 3 trades per day. The only reason someone like me can endure all the pain, agony, stress and near-suicides is because I know that my TA strategy is SICK...! I even created my own patterns with nicknames and combinations of various indicators in several TFs for signal confirmations. It took a lot out of me as a person to get to this point --- I am 100% self-taught, my tuition was pretty high. The other reason I don't let these big loss days get me down too much (in addition to it being extremely counterproductive) is I would much rather lose a reset fee than the actual losing trade. For traders who are not accustomed to making and losing a few thousand dollars a day will never know that feeling so they are not able to make a realistic emotional/central nervous system response connection on a "sim account" --- but I know that feeling very well so even though I am doing the evaluation on a sim, I trade like it is real money because I have traded that level of margin before with the huge wins/losses. Thanks to these lofty goals that these companies set in order for a trader to pass and earn a funded account, I incorporated a lot of risk mgmt into my psyche -- before that, I did not even know what a trailing drawdown, profit factor, etc. were....pretty bad. It's like those idiots who only work on upper body at the gym with toothpick legs I would love to teep or lock-kick. lol Thanks for all the comments and kind sentiment y'all! Enjoy the rest of your weekend.
My new risk management system: 1) Maximum 2 ES contracts (first lot, second lot sequence) 2) 10-point Stop loss on all entries 3) Maximum 3 trades per day 4) Acceptance of my "edge" not on every single trade but rather over a given sample of trades
Yup, I programmed it into the Rithmic trading platform earlier tonight. Thanks for the reminder though...mad love dude!