Hello volpri, When you whittle are you taking trades in the opposite direction of your average in position? For example, if you averaged in short and holding a short position, you may start whittling by going Long on some scalps?
No. If short I whittle short on small rallies and cover on small declines until it probes back to my original scaled in short entry. If it doesn't make it there but I find I can exit all positions and still, make an overall profit I will do so even if I lose on my original averaged in short entries. If my original averaged down entries are long and l will whittle down that loss by going long on successive entries on stop entry orders as the market probes back until it gets back to my original long entries with a profit on them or if it doesn't get back that far or looks like it might not make it then if I can exit with an overall profit and get flat I will even if I lose on my original averaged down long position. What makes this work are five concepts: 1) Market tendency to probe on individual bars and groups of bars 2) doubling up or tripling up on the stop entry orders. 3) willing to grab small gains on the doubling up or tripling up stop order entries. 4) Successive stop order entries betting on quick market probes in the correct direction. That is why I use stop entry orders on whittling down my paper loss on the original averaged down losing position. 5) only using stop entry orders or market orders once price goes above the previous (if whittling long) or below the previous bar's low (if whittling short) Why? because PA ha now moved in my direction for a quick scalp on bigger size. Study the chart I posted today and my write-ups explaining the chart and the trades and I think you will see it basically embodies these concepts.
Don't discount it because it is SIM. It is a big deal! I have always said if a person cannot make something work on a SIM they certainly will not make it work with real money when the emotions kick in and it also with real money live trades it generally has to travel 1 tick beyond entry and exits prices to get executed whereas with a SIM entries and exits may occur as soon as price is touched. IMO SIM must be first. If that works (for any strategy or technique) then and only then a person maybe might consider using a certain technique live. But not until they have proven to themselves that they can make it work over several trades and over time on a SIM. Otherwise, they will get bumfuzzled and rattled trying to do it live. THIS SAID I AM NOT TELLING ANYONE TO DO WHAT I DO IN THIS JOURNAL. THIS JOURNAL IS FOR ENTERTAINMENT AND TO SHOW HOW I LIKE TO TRADE. IT IS FOR FUN. YOU CAN LOSE MONEY TRADING AND YOU MAY NOT HAVE THE SAME RESULTS I SHOW! SO, LAUGH AND HAVE FUN OR CALL ME STUPID. I DON'T CARE. NOT THAT I PARTICULARY LIKE BEING CALLED SUCH NAMES BUT IT WON'T AFFECT MY TRADING OR THE CONCEPTS I HAVE HAMMERED OUT FOR MYSELF AND WHICH I SHOW IN MY TRADING. HOWEVER, CALLING ME NAMES MAY INFLUENCE OTHERS TO NOT READ MY POSTS OR READ MY JOURNAL AND THEN THEY WOULD MISS OUT ON A LOT OF FUN! NO NEED TO CAUSE FOLKS TO NOT ENJOY A LITTLE FUN IN SUCH A HARD ENVIRONMENT. TRADING IS DIFFICULT. IT TAKES A LONG TIME TO FIND OUT WHAT WORKS FOR EACH PERSON.
The Achilles heel is number 3 in my post above: not being willing to grab small gains on doubled-up or tripled-up positions but getting greedy for more and suddenly the market probes in the other direction. "Grab it" while I can is my motto!
Good Evening ironchef, I LOVE SIM. Nothing wrong with trading SIM until you get better. I take SIM trades as well. I am in SIM practice new stuff as well and I am not embarrassed about it one bit. Better then losing real money, and not have confidence in your trading. Then you go to drawdown and get stuck there with real money. Stay in SIM.