Shrug, he was the one who started with the "inferior" blanket label "for all time frames" etc. Not us. And that's really where the bulk of the discussion has been revolving around -- I couldn't care less what he does with his own account. That's the hitch to ET, "quality" information for one trader/style/method/market = disinformation for another.
My assertion that scaling out is deficient doesn't have anything to do with whether or not I like short term trading. I am saying that no matter what time frame is traded, 1 minute or 10 years, scaling out is inferior. You have missed the whole point.
no. I believe that is a fantastic way to enter as long as you keep within your parameters of position size and don't overextend.
Here is my arguement, you say you miss the meat of the profit when you scale out, what are you missing when you are right about the move but only scale in buying 2 instead of 20 at the very start of the trade ? BTW aren't all of your trades hedged with options ?
Sorry--no it's not BS. I've given you the honest answers here in this thread. You may take the suggestions or not --it's up to you. However, I am not selling anything and I am not a fake.
No my trades are not all hedged with options until I feel we are nearing a top. As a market climbs I begin scaling in call option sales well out of the money. When the market is near the top, I will be fully hedged. I have not had a losing option trade since the 1992 Soybean market. As far as the scaling in goes, the move seldom(and I mean very seldom) takes off without me. If it does, I go full bore at that time. Very few times that this happens.
I scale out sometimes for the very same reason you scale in. We are truly guessing when it comes to entry and exit , we don't know 100% that the move will continue while we are in the trade. I can pull 2 point trades out of ES all day long but when I don't sell half at 2 points and move the stop to either break even I am violating my rule of letting a winner turn into a loser. I can tell you I have left far more money on the table exiting all at once than scaling out and letting the trade run on the rest. I actually think anyone trading futures should start with 2 contracts. One of the main reasons people fail at trading is because they don't know how to let their winners run. When you have 2 contracts you can sell 1 at 2 point profit, set it to BE and if the move continues that is great, if it retraces back then you still made money on the trade but at least it lets you satisfy the internal struggle between fear and greed without affecting your profitability.
Disagree with the man's philosophy, sure. But don't insult his trading, I've seen him make real-time calls in multiple instruements across all of the major asset classes: Financial Indicies Curriencies Agriculture , etc. I'm sure he trades quite a few more than what I've listed, those are just the categories in which I've lurked and seen him make the calls. Whatever he is doing, it works for anything that leaves an OHLC. Can I say the same? Can you? In fact, how many on here can, for that matter?(um, that falls under the category of rhetorical). No, he defiitely isn't snak oil. Regards, Jimmy