Discussion in 'Risk Management' started by oldtime, Jan 24, 2013.

  1. They don't call me oldtime just because I am old

    Anybody else out there working with time?

    For instance, how long it takes you to get hit

    Too long, you tighten up the time, not the price

    Too soon, you widen the time

    But you do it all with price
  2. it all started when I guess I was doing ok in forex

    but sometimes I was trading every 20 seconds

    and other times I was only trading once every few days

    all based on price

    so I just set the whole thing up in a paper account, with no regard to money

    and suddenly, I wasn't trading on price

    I was trading on time

    Haven't actually done it with real money yet

    but that's the good thing about et

    no matter what idea you come up with

    somebody else has already tried it, and can tell you how it will go
  3. so for instance, in my case, I don't use stops, but I do add to winners and losers

    and when you are adding quicker than usual

    in otherwords, time

    you can adjust, to keep your money management in tune

    by using price to adjust time

    (and yes, I'm a pothead, and only smoke when I'm flat, and just happen to be flat at the moment, after a very profitable day I might add)

    It goes back to my dream of a strategy that evolves over time

    not based on price

    but how quickly or slowly things change
  4. There is the idea that Mandelbrot talked about relating to price action and time....
  5. yeah well, I know it means a hell of a lot more to you option traders than it does to me

    the point I was getting to is

    the regular occurring of instances

    measured by time

    rather than the values
  6. sooo.... this might not even be what you are talking about but... if you have a rate of change on the increase should you not adjust your position . because inessense time is speeding up.. if you considered price action a function of time..... direction changes yes.. but the rate is the same if scaled to time.. if you take a fast market .. slow it down.. it looks very similar to a slow market.. and vice versa.. i heard a guy talking about increasing position size in slow trading and decreasing it in fast markets.. basically your using the same position size adjusted to a scaled time..
  7. yes, that's exactly what I am talking about

    mathematicians have explained this to me many times

    it's always better to put it all on with a stop

    but I can only lose 100% one time

    so I have to be more careful

    but to put it in laymen's terms, you adjust by how often your limits are getting hit

    so if you are a one hour trader, and your limits are getting hit every minute, you need to widen up
  8. i've heard of guys just generally putting time stops on trades to... just a little more logic... if this and if this then stop out...
  9. two things have screwed me up more than you can imagine

    one was trailing stops

    the other was time stops

    and I've used them both ways

    to stop a loss and to add to a winner

    and both of them just totaly screwed me

    but wouldn't it be nice if it was just that simple?
  10. the only thing that works for me.. is trading in times of long movements.. haha anything inbetween i can't trade.
    #10     Jan 24, 2013