Hello rknas, You have to just dedicate your life to watching price on the charts and do the best you can. It takes A long time.
Damn if it don't, lol. What would you say have been some projects that you might have been better off to put at the back of the briefcase to free up time and attention for more beneficial trading ideas and pursuits.
Hello easymon1, Great question Women and classic cars. But I love women and classic cars. I am actually done with spending alot of time thinking about trading ideas. It is a waste of time, because there is like 100 trading ideas I can come up with. But not time and energy and motivation to test them out. I prefer to just scalp daily and working on scalping algo. Swing trading algo is easy
This is huge improvement over only using stop as a risk management measure. But there is still room for further improvement. My system uses stops both for entry and exit, at the points where a trend is expected to start and end. For example, my swing trading system says spx 4094 will be the stop short entry signal when it hits on next trading day.
Yes but 5% is in every means a lot. It takes 5 losers in a row and 25% are gone. Even with a big edge this almost means betting the farm.
First, your assumption is wrong. You assume a constant amount of capital. But the correct formula is a constant ratio to your capital. For example, if your capital is 10000, 5% is 500. But when your capital reduce to 5000, your 5% is 250. But you assume it is always 500. Second, per kelly Criterion if your win rate is 80% and win: loss ratio is 1:1, your best bet percentage is 60%. I think 1/4 kelly Criterion is conservative enough, which is 15%. You think it is too risky because either your win rate or your win: loss ratio is too low. That means your edge is too thin.
1. "spending alot of time thinking about trading ideas" 2. "But not time and energy and motivation to test them out" Could not agree more. If you don't benchmark the ideas, why even bother to think about them. So ...what triggers your entry?
Is there a good platform recommendation where I can simulate an option hedge against a futures trade in ES? I have access to Interactive brokers and Thinkorswim/Ameritrade.