Pekelo, Previously you posted that 14 points against you is roughly 1% of your equity. Considering the above trade I'm wondering , out of curiosity, what kind of maximum heat you are prepared to take ? Last week it got to the 5% range in heat. Best of luck on the reversal. Anek
Obviously I picked the wrong week to play it lazy and just stay long without concern which way the market goes and by how much. The question is good and I shold have used a 5 ES point stop loss. I have already been using it when shorting, but being long and falling just means that I am falling WITH the market, thus mimicing its movement. But honestly, I wasn't expecting so much fall so fast. Nevertheless a more sensitive money management would have been better. One reason I didn't worry much because: 1. Annual goal was already achieved. 2. I can always start using the 2nd unit making the leverage 1:2... 3. I was losing from decent gains. (well, stupid) At this point I am contemplating if I should just ride the waves and making only a few trades. (Boring!!) or If I should play it more actively with 2 units, which is more exciting but also riskier. Since I don't like boring, most likely I will do this later one. Oh yes, as a short answer to the question, I would have got out of long had the market gone down to zero YTD. Thus the fund is not allowed to LOSE money...
Still holding this long?? If you are, what made you stay even though the position was almost 100 points against you????
I am planning to get out above 1490. I should have covered today at 1490 but was busy with something else. The reason why I am still in the trade was explained in the post above. The goal of the journal was already achieved and as long as I am fluctuating WITH the market but still outperforming it, I am OK.(Name of the Journal is Verisimi, meaning it supposed to mimic the market) Lately I have been busy with other things, once September is here, I will trade it more frequently. I know I missed lots of the volatility and the opportunities, but this journal is/was mostly a TEST of my idea: How to outperform the market in the possible simplest way.... Those hotshots at the Bear Stern hedgefunds sure envy my fund's app. 4+4% YTD performance... P.S.: Let's say I go short tomorrow and the ES drops 30 points. That is 60 points difference relative to the market, and would mean an immediatelly 4.2% outperformance. Then I could really close the thread...
No, it counts. Why wouldn't it? I never said anything like that.... Getting out at 1504, closing the position...
For the record, I was up 106.5 before I took this long position and went for this wild ride. I got out with a 21 pts loss, so YTD I am up 85.5 pts currently, or 6%. The market is up 5.6% YTD., I am up 6% from trading and 4 % from the CDs, so currently beating the market by 4+%... From now on EVERY position long or short will have an automatic 5 pts stop loss, unless otherwise noted...
That is accounted for the whole year. Market update: Futures dropped heavy overnight, currently down 14 points at 1489 (finally I got out at a very good moment), so if we open here, would I go long, my outperformance would be 1% higher right now compared to yesterday.....