Time

It's an interesting method. I can't say I experimented much with it. Some traders *never* take a loss. Until one day (or maybe never), they blow out. Others, when they're winning, bet BIG. All that flies in the face of conventional orthodoxy, but if it works for a trader, then it works.

 

I take plenty of losses

just not the way they teach it in the book

and no, I am very conservative, and have never been a "Bet Big" trader

not my style

they will never write a book about me

unless it is who survived the longest

 

Some would argue that's all it takes. Only have to get rich once.

 

you can get rich many times

but you can only get poor once

and then it's back to a real job

 

Time is a topic that is never ending.
It is a variable like any other.
It can be fitted to fit a trade, all trades usually work out over 50 years, those who are still long from the tech boom may one day be right, their kids may benefit.

The change of parameters can work but the complexities of this is very sensitive.

John have a trade, it went bad, so he saw that more long term it will work out.
A loss is now justified, He changed his target allowing an acceptable stop loss risk level.

Soon all bad shorts seemed to change to more long term goals. Good trades were kept in the short term with proper target.

One bad trade ate up all the profits and was justified by changing time frame.

Your system can be made to work. Possibly even if time frame is changed mid trade. But good luck

Why not just learn to accept mistakes and to switch between buy and short ?

At the very least you will be able to calculate your profits properly.

This is what it seems you are avoiding

Why did you even consider this? Let alone how profitable it is, why did your brain choose this as some thing to study?

 

isn't that the way it always is? I've got this running over in my paper account and it is just consistently making money.

uses hard money stops to deal with losses

but adds to both winners or losers on time

the commissions are just crazy

but no drawdown yet, so still too scared to put it on for real

 

well actually, it doesn't use stops (don't like them) but it uses something similar

at anyrate, it takes small losses and tries to nip them in the bud before they get too out of hand

otherwise, if it hasn't got stopped out it gets added to, both winners and losers

the trick is setting the time interval

 

an interesting thought would be.. when you put on a trade.. isn't there some inferred time range in which you speculate things to happen... usually the longer i'm in a trade waiting for it to do the thing ithought it was going to the more i ended up being wrong about the whole thing..

 

yes, patience is a virtue, but like you say, at some point it becomes an indication that you overestimated the move.

In my case, it was just the opposite. Too many fills too fast. It's happened to me many times over the years. My solution was just to widen up. Then I got to thinking about using time.

 

your backtesting is just your trading... i'm sure there could be some real optimization aand backtesting to the time stop idea...