Witch hunters are only good for witch hunting it seems. No point trying to explain anything to someone who are out to "get you". Myself I simply read it as possible simple mechanics in your system, ie. to take smaller/quicker losses when a big one occurs. Pretty common trading rule really, and if it really works, it would indeed prevent big consecutive losses. But why explain to haters? Haters are gonna continue hatin', and don't want to understand.
Okay so 3pts is your max loss, after being hit you reduce the SL, so your going to admit to taking 2 or more losers in a row? But also the logic of taking a hit and therefore tradeing scared, reducing SL and target isn't exactly wise, losses happen. Can you see, why we would read that as never ever ever ever boast boast taken 2 losses in a row regardless of pt size? I likely never had 2 identical losses in a row, differing SLs different slippage, doesnt mean i didnt have think it was 7 losers in a row the other week. Explain why you trade at $10,000 per point again lol
Personally, I think it pointless to discuss such details until full disclosure of trading plan, and we won't get that. Generally, I'm impressed by people reading other people's points, percentages, ES, whatever, without clearing assumptions first Anything's possible, and it's also possible to be very confused by other people's numbers, which often won't necessarily mean what they seem to imply. This rule could be about de-risking in a market starting to show evidence of weakening (assuming signals of strength in correlated markets). Backtest would show if such is expected to cluster, but doesn't seem implausible. Maybe this wasn't the original point, but with open mind you can anyways learn something from everyone.
This is such BS from you I am Nobody. You may have left ET for good and that's fine by me. You will likely still comeback and read what I am writing if for nothing else than curiousity... So I will say this to you. You remind me of Hillary and Bill twisting words to have such minutiae detail that makes it NOT a lie but fundamentally a BS half truth at best. You stated you have been trading for DECADES (plural) and that you traded since BEFORE ES was even around 1995.... So excuse me for extracting that as being reasonable knowledge of you trading 20 years. I actually gave you the benefit of the doubt and supported what you claimed to try to understand and learn something and again you spew half truth crap that proves you are full of it. There is no witch hunt here as I was not hunting but searching for enlightenment and all I found was fanatasy claims. You know I too have never had 2 consecutive losses of any kind in ES.....that's a 100% truth!......that's because I don't trade the ES. Does that make it bullshit truth?... Yes it does,....Just like yours.
Wrong. I know for a fact that days and patterns repeat themselves. It's pretty much the same type of days (among a wide variety) over and over again.