Thoughts on scaling up

Discussion in 'Order Execution' started by superchargedv8, Apr 4, 2020.

  1. Changing broker because it glitches and very slow execution. Not everyone has decades of experience and some of us started from scratch so we have to learn as time goes by. If my question was not up to your standards then you should have left it alone and moved on OR you could have just asked me to be a bit clearer.
     
    #21     Apr 6, 2020
  2. minmike

    minmike

    If you are not hitting capacity constraints, it is all in your head. Automation is the best friend of scaling up. System had a bad day instead of I'm an idiot. Even if you automate paper trading so that you see how much your decisions cost.
     
    #22     Apr 6, 2020
  3. It very well might be in my head. I just found it odd that when i doubled my position as soon as i got in price would immediately start dropping, and if i hit my stop then it would immediately start reversing and this happened several times so thats why it struck me as odd since it was very clear and down to the cent. The position equates to just under 100k. I understand that the p&l variation was going to change based on the larger position but i was just trying to get some input and see if this was something that commonly happens with larger size or like you said is just in my head. For a second i thought it might have something to do with my broker (TOS) but i doubt it. Im still somewhat new so i might be going about it completely wrong but as long as i learn along the way i wouldnt call it a total loss.
     
    #23     Apr 6, 2020
    .sigma likes this.
  4. if i understand you correctly then the problem is easily fixable, i had a similar issue before where when i trade bigger its a loser trade, but found out it was no fault of the bigger position, it was simply a bad trade, but then i get shaken and on the next trade i take a bigger position then its a profitable one, i trade systematically so i play every hand that my system gives, depends on your style but in either case you need to systematize/quantify your position size and stick to it, meaning if for example you always take 2 contracts and u want to go to 3, u need to stick to it, because if ur trading is profitable over all, changing position size constantly based on how you feel in it self can turn the whole trading from profitable to losing, it would be even better if you can do it in terms of dollars, 10k per stock for example, this way you have no attachment to the quantity of the underlying besides that u know you are trading your STANDARD position size, across the board, across all instruments, this is done correctly can lead you to greatness, of course again assuming your profitable overall in the cumulative sum of your trades
     
    #24     Apr 9, 2020
    .sigma likes this.
  5. .sigma

    .sigma

    scaleup.PNG
     
    #25     Apr 9, 2020
    murray t turtle likes this.
  6. Thank you for the help!
     
    #26     Apr 9, 2020
    murray t turtle likes this.
  7. %%
    One of the funniest but most practical questions on elitetrader= '' WHY does the market ALWAYs reverse when I get in?? '' The right answer= ''stop trading so large''LOL.
    And don't confuse noise with signal...…………………………………………… Trend study helps; I also proved the market is not random- I lost far, far worse than average % 1st year I traded LOL
     
    #27     Apr 13, 2020

  8. or do exact opposite of what you normally would get in :) great stuff
     
    #28     Apr 13, 2020
    murray t turtle likes this.
  9. %%
    Great stuff.
    One reason people make so much money in real estate;
    they put $500 or a % earnest money as a deposit. And if things check out right/title deed inspection,.......... they buy the whole property.
    That' s why scale in can work so well in stocks /ETFs
     
    #29     Apr 15, 2020
    systematictrader likes this.
  10. Its not that it goes against you. Its the timing of the trade thats wrong. The broker doesn't look to stop you out price does the stop. Probably investigate your trades
     
    #30     Apr 18, 2020
    murray t turtle likes this.