Jessop, What you need is an automated trade executor such as ninjatrader, buttontrader, zeroonlinetrader automated stops, automated entries. Kiss your problems goodbye.
Hi Coolweb, I do use NinjaT and have a predefined 0.6 pt stop for all exits. My big problem is that I don't let my winners run much beyond 0.5-1pts, which means my risk reward stinks. My trade yesterday was a good example. To make it in this game I need to be making real points out of plays like that. My edge shows me the intraday swing points pretty well (like the low of the day yesterday) but I think I'm just in too close to the action on my 1-2 min views. I'm looking at using: - 10min for general trend - 3min as main chart view - 1min chart & data for timing entries as swing point emerges on 3min Same signals but maybe a 1pt stop and using the swings better. Cheers
Thank you very much Jessop for giving us a live demonstration of the fact that button/linezero/ninja busy-box stuff doesn't help much in making a great trader. As you seem to understand, your big problem is that ...
Jessop, I had this problem too. This is what i did about it: http://www.elitetrader.com/vb/showthread.php?s=&postid=728588#post728588
News to me. Better stop trading then and tell the bank that the money that I deposited is imaginary. (just kidding) In other words the above posting is made by someone who is still new to this game and does not yet know what is possible and what not. The real big money is not made by automated systems. Sherlock Shamelessly reproduced here from fellow ET'r travis: (thank you)
Macaw, Many thanks for that. Your comment in the referenced post : " The first week or so was so excruciatingly painful that I felt I needed to handcuff myself to something out of reach of the computer. I had to sit and watch profits disappearing (before I would have exited like a frightened rabbit), prices hammering towards my stop without any sign of retracement etc.. " certainly is very much where I am at the moment in terms of emotional control. I have a mental block letting anything go much beyond 1pt profit even though I know they are very likely the highs or lows of the session (like yesterday's trade). I know you are right and I need to dig deep to get me through this fear of losing.... Cheers
I don't know about ninja as I use buttontrader, but you should program in a trailing stop and just let the program close your position for you, and then HANDS OFF!!! of course you need to do a little research to see how much room you should give it... er2 moves in very nice waves and for the big moves you don't have to sit through big countermoves against you
Mogul, Yes I need to relook at trailling stops given any move to a higher TF 3-5 min etc. I did look at it back in May and couldn't see how to use it effectively for my signals & exits.... BUT that was based on taking 20 trades a day off 1-2 min charts and getting into a hell of a lot of 'noise'. Something else for the To Do list.... Thanks for the feedback
It was difiicult because I would convince myself that my small profit was going to finish up being stopped out with a loss even though my testing showed I was MUCH better off to sit on my hands and stick with the trade.And the more I watched the screen the more my fears would grow. I think (for a lot of traders) cutting your losers short is a lot easier than letting your winners run. My problem was that I would do anything to avoid the feeling I would inevitably have if I took a loss. That was obviously my biggest profit-killer and resulted in consistent small losses. It seems the harder you try to avoid taking a loss, the more likely you are to create one. I think if you can work out what's causing the fear that makes you change your strategy mid-trade (e.g. lack of confidence in the system, lack of money, ego or, if you're like me, all 3 plus others ) then you're more likely to come up with a strategy to conquer it.
the 1200 tick chart example I sent you with the indicator settings that I had in the chart examples can show you when to trade with the trends and not against them --- taking only the 3 min chart signals that are in alignment with the 1200 tick chart indicators direction during these strong trends will keep you honest and reduce your low probability trades. That day I took 8 three minute chart short trades and 4 longs that were all confirmed by the general direction of the 1200 tick chart indicators and they all worked out profitable --- there were numerous signals that I did not take from the three minute chart that were in conflict with the 1200 tick chart --- some of those would have worked out but many would not have. The main point is that it helps to have a higher timeframe chart to see what the overall trend is at the time you are entering trades.