My Biggest Loss Ever and the Lessons I Learned

Discussion in 'Psychology' started by qlai, Oct 13, 2020.

  1. qlai

    qlai

    High can turn into Crazy pretty quickly. Are you saying that your algo makes this determination and skips all the trades until volatility stops being Crazy? This determination would be quite subjective whether determined by algo or human.
     
    #41     Oct 15, 2020
    SimpleMeLike likes this.
  2. RedDuke

    RedDuke

    correct and a lot of code went into it.
     
    #42     Oct 15, 2020
    qlai likes this.
  3. qlai,

    I really really disagree with your statement.

    A trader must take full advantage of the opportunity to make money every day, does not matter "when the market shines" or when low floats, or whatever.

    The trader or system should adjust dynamically and naturally as the market conditions change. Switching to mirco ES allows me to make comfortable bets regardless if the market is shining, clowning, dancing, not moving.

    Listen very very very carefully to Larry Hite and Blair Hull below.

    I listen to older traders, they still making money. The new guys are just pony and clown show and messing ass around.





     
    #43     Oct 15, 2020
  4. qlai,

    This is just my opinion for some simplicity, but the determination to skip trades due to volatility is based on risk (or stop loss size) and capital size and risk percent of capital size.

    For example:

    Account size = $5000
    Risk percent = 2%
    Risk per trade today is : $100

    Trade 1 ES:
    Stop loss distance is 3 point, $150 risk
    NO, I can not take this trade. Risk outside your tolerance.

    Trade 1 Micro ES
    Stop loss distance is 3 point. $5 per point. Risk $15 per contract.
    Yes, I can take this trade with 6 contracts.

    You see, no need to worry about volatility or crazy or shining market or pony and clown show. The risk pre known and contract size is calculated per trade.
     
    #44     Oct 15, 2020
    Andrea Wylan and smallfil like this.
  5. RedDuke,

    I agree with this part. I learned this the hard way while trying to using a trailing stop of fixed 20 ticks when trading the CL this summer.
     
    #45     Oct 15, 2020
  6. Arnie

    Arnie

    Besides the obvious lack of risk control, my take away from the OP is that he did not recognize that a lot of traders had already taken a position before the AAPL day announcement..."Buy the rumor, sell the news"
     
    #46     Oct 15, 2020
  7. qlai

    qlai

    @SimpleMeLike, everyone has their own philosophy and that’s fine with me. Below quote resonates with me, so that’s what I try to do. To me, the advantage of discretionary trading is to be able to recognize an extraordinary opportunity and go for it. Otherwise, I would rather invest in index funds.

    NOTE: this doesn’t mean disregard risk! It means to leverage your gains.


    “Soros has taught me, noted Druckenmiller, that when you have teremedous conviction on a trade, you have to go for the jugular. It takes courage to be a pig. It takes courage to ride a profit with huge leverage. As far as Soros is concerned, when you’re right on something, you can’t own enough.
    Soros argued that the way to build long-term returns was thruogh preservation of capital and home runs. You can be far more aggressive when you’re making good profits. Many managers, once they’re up 30 to 40%, will book their year (that is, trade very cautiosly for the remainder of the year) The way to attain truly superior long-term returns is to grind it out until you’re up 30 to 40 percent, and then if you have the conviction, go for a 100% year. If you can put together a few 100% year and avoid down years, then you can achieve really outstanding long-term returns.”
     
    #47     Oct 15, 2020
  8. qlai

    qlai

    Attending below webinar right now :) ...

    upload_2020-10-15_16-29-23.png
     
    #48     Oct 15, 2020
  9. SunTrader

    SunTrader

    I don't understand the two charts in OP.

    Both are Apple one minute basis over the same timeframe including premarket - so why do they look so different?
     
    #49     Oct 17, 2020
  10. I don’t find it easy to use trailing stops. I think it is one of the most difficult things to do.
     
    #50     Mar 18, 2021