Good Evening Volpri, Thank you for the write up. Yes, a video will be very very helpful. I do not care if it's SIM, every bit of PA education helps for me Lol, broker always gets ribeye. And yes, some mechanic overpriced.
Good Morning volpri, Have you ever tried and experimented with 4:1 fixed R:R only, without averaging in or double or triple up contracts on next trade to recover losses quickly. Just straight 4:1.
That could work but likely would need an extremely high win rate and of course FOT because one is battling to get back a loss first on next trade then make some on a subsequent trade after getting back the loss. However, say you get 3 losses in a row. Then you got to burn time getting back 3 losses before you can get back to making $$. Time where I could have been employing FOT. I guess it depends on the trader. I don't like waiting around when it comes to scalping. Now position trader is different. That usually requires waiting and bigger DDs. For scalping I want to grab what the market gives me and leave myself plenty of future chart real estate in the session to be making money. I am not saying it is necessarily bad strategy, but it isn't MY preferred way of scalping. Another way one can trade is the reverse on size. Star with the bigger size on the initial entry and knock down on size on the subsequent averaging down entries. So, start with 4cs the average down 2 contracts, then average down 1 contract. Then sit and wait to let it play out. If one is pretty confident of their PA reading that is a viable way to increase size on an existing trade and utilize averaging down while at the same time reducing risks on the averaged down entries,
Ok here is a video that drives home the points of my post #2570 above. This was trading MES, trading small 1c except on recovering losses then I up the size but keep the R:R the ratio the same. Using a fixed SL and PT, FOT, and what to do when a loss occurs. R:R is upside down. Using wider SLs. IMO this is where many scalpers go wrong. They try to use too tight of SLS. That leads to paper cuts bleeding one's account. A scalper generally cannot have a high win rate with tight SLs unless they are a super entry picker. I haven't reached that level yet and at my age I may not get to that level so I have to have a way to get back my losses quickly. So, upside down SLs are usually part and parcel of the scalping package because if they are too tight the normal market probes back and forth on single bars, small groups of bars, or pattern probing will hit tight SLs frequently resulting in overall losing. Therefore, IMO it is better to widen SLs for scalping and have a technique for quickly getting that loss back when one does occur thus leaving plenty of upcoming chart real estate left during the session for more FOT. Figuring from a 1c basis 36 entries were made and 36 exits for a total quantity of 72 trades. So 36 RT with comm costing around 1.04 per RT comes to $37.44 in comm. It was 42.25 points made X $5.00 point = $211.25 minus $37.44 =$173.81 net profit. The time traded was about 40 minutes. Not too bad for trading small on a micro and to make $173.81 in profits. Win rate ended up being 75%. Ok but not super. Enjoy and I hope it drives home the points of my post #2570 Disclaimer: All of these videos on this YouTube channel including this video are for entertainment and information purpose only that show how I like to scalp. Actual results can be different than real or SIM results so I am not advising anyone to use these techniques. You may not get the same results as shown in all these videos and you can even lose all your money plus more.
Well I got 1 front strut and rotary and brake pads on yesterday and bam that wiped me out. So today I will tackle the other side. It is tough being almost 70 and the car not on a rack but on a cement pad. I am sore this morning. LOL I likely won't be posting any more until tonight IF I do make any more posts. I am just waiting for weather to warm up a little to then tackle the other strut after 12:00.
Good Evening volpri, Thank you for the response. I agree with you. 2-3 losses in a row with Fixed R:R (i.e., 20:5 risk 20 points to make 5 points) would lead to needing 10-15 wins in a row just to get back to break even, this would take the entire trading session to recover. There is not wrong with this but trader trading will have to be exceptional good day to day. Good comment.
In my live trades, I actually stopped using SL or PT. Trading index and names without leverage, daily loss, even with buy at daily high and sell at daily low are not that much, that way I let my averaging down plays out and usually they would work out. I would never do that with leverage, e.g., like writing naked options.
Hope you don't mind me asking, why you only showed sim trades? Are real money trades the same? Take care.