Trading Winning Positions - The optimal approach

Discussion in 'Strategy Building' started by mschey, Feb 16, 2006.

  1. tomorton

    tomorton


    You should take the opportunity of suggesting a better way forward, at least because it might help me improve what I'm doing.

    Let's suppose price is at 50 and already in a consistent uptrend. We enter long at 50 and the TA conveniently suggests a SL at 49. Let's suppose price continues upwards to 56 without any significant correction but then drops to 55.

    What I would do is buy at 50, 51, 52, 53, 54, 55 and 56. The SL on all open trades is always set at 1 below the highest new entry price. When the 56 trade opens, all the stops are at 55. Now price drops back to 55, and all trades close simultaneously.

    My net profit from the 7 trades is 5 + 4 + 3 + 2 +1 +0 -1 = 14. That's 14pts from a maximum move of 6, and a stopped out price of +5, and achieved with no account capital risk greater than 1 at any point. If these things mean anything, that's a r:r of 1:14.

    Please go ahead and outline an alternative strategy given the same uptrend scenario that matches this without greater risk and with at least equivalent r:r.
     
    #61     Feb 15, 2018
  2. volpri

    volpri

    Win ratio is more important....than any other ROFLMAO
     
    #62     Feb 15, 2018
  3. tomorton

    tomorton

    Me too.
     
    #63     Feb 15, 2018
    volpri likes this.
  4. volpri

    volpri

    Small pull back trend day. Great day for adding to losing positions in the ES. Over and over again.
     
    #64     Feb 15, 2018
  5. volpri

    volpri

    Grinding higher and higher.....someone said that would probally happen....
     
    #65     Feb 15, 2018
  6. volpri

    volpri

    Of all the metrics win rate trumps all.
     
    #66     Feb 15, 2018
  7. volpri

    volpri

    Trumps a winner and win rate trumps all! ROFLMAO
     
    #67     Feb 15, 2018
  8. Now this isn't the same as forex grid trading?

    Here buy one at 50, price hits 51 and you buy one and move all stops to 50. Price hits 52 and you buy one and move all stops to 51. Price hits 51 and you close all positions.

    Can I consider this correct?
     
    #68     Feb 15, 2018
  9. Provided you were uncertain that the trend was going to keep going up, this way makes sense. Otherwise you would go long with your largest position first and make 35 instead of 14. This sounds like you are not able to successfully predict market direction. Do not feel bad regarding this. You are not the only one. Hence this forum.

    Risk reward doesn't mean much, though. When price touches 50 I can buy with a stop loss of 1 and a goal of 80 and have 1:30 risk reward. Who cares?
     
    #69     Feb 15, 2018
  10. tomorton

    tomorton


    This is what you do but I don't know if its the same as forex grid trading.
     
    #70     Feb 15, 2018