Why Is The Obvious Not So Obvious II?

Discussion in 'Risk Management' started by fordewind, Oct 18, 2017.

  1. SkyChef

    SkyChef

    Stop loss is part of risk management.
     
    #11     Oct 18, 2017
  2. Simples

    Simples

    I've never encountered this in 30 years of software development, though logic is not without merits :)
     
    #12     Oct 18, 2017
  3. ironchef

    ironchef

    Is it?
     
    #13     Oct 18, 2017
  4. bpr

    bpr

    I have seen the reverse argument as well unless we get the exits right no matter the entry...


    :rolleyes:
     
    #14     Oct 18, 2017
  5. aha!it`s close to what i mean.not exactly, but close.
     
    #15     Oct 18, 2017
  6. Vindago

    Vindago

    Getting the exit right, hmmm, yes, especially when you are wrong! that is the hardest thing... especially if you did not get the entry right.
     
    #16     Oct 21, 2017
  7. Vindago

    Vindago

    If you get the entry right more often then not, and get the exit right when you are proved wrong, then it does not matter much if you capture 50%, 80% or 100% of the move when price move in your direction.

    At the end of the day, you have two variables that will make you or brake you: rate of win/lose trades, and (average) rate of gain/loss per trade.
     
    #17     Oct 21, 2017
  8. matters a lot!
     
    #18     Oct 21, 2017
  9. Vindago

    Vindago

    Of course it matter, but only to a certain extent, as it is only part of one of the two variables. Let me explain what I mean: if your trading set up is good 4 times out of 5, you will average 4 winning trades out of 5 trades, than lets say that you set your risk equal to your average gain, so if you lose you lose 300$, if you win, you win 300$, you perform 5 trades a day on average, what will be your P/L at the end of the day? what if you perform 10 trades a day?

    what if you have the same set up but only expect to gain 150$ for a winning trade and you run 10 trades a day?

    you see, you can play with these variables to find the setup that works best for you.
     
    #19     Oct 22, 2017
  10. That`s all bs.How many times have you tried that and what are your results?

    Ok, im gonna give my answer...

    After you got your first obvious straight-the precise entries you need the second obvious without which the first one is hardly useful n the long run.

    After you get your entries down cold,YOU HAVE TO SIT OUT AN EGG.

    That is the second obvious that will finally lead you somewhere.Of course both obvious will not be revealed.You`ll have to work them out on your own.

    This thread may be closed.
     
    #20     Oct 22, 2017