why scale out

Discussion in 'Risk Management' started by investwthme, Dec 5, 2008.

  1. xxxskier

    xxxskier Guest


    lol......
     
    #51     Jun 9, 2009
  2. xxxskier

    xxxskier Guest

    mark, scroll back up in the thread, and see more "one event wonders". lol.

    and no, i will not be posting my trade log for the world to see.

    i have nothing to prove.

    check the 2009 pnl thread, you'll see how much $$ i've made since i've been posting my blotter the past 3 months.
     
    #52     Jun 9, 2009
  3. MarkBrown

    MarkBrown

    #53     Jun 9, 2009
  4. xxxskier

    xxxskier Guest

    it works in both trend and counter-trend trades, it all depends on entry trade location.

    i have posted in other threads how i identify chop from a potentially directional move using internals (add, tick, vold, vix) to help with figuring out if its a move or a head fake. besides watching internals like a hawk, i also look for inter-market diverergences between ES, NQ, YM, Russell. so besides watching MP for the long-term view, PA for the short-term view, and delta for exhaustion/continuation i also look at one other thing that i ties all of the above together......but that is for me only. some things are better left unsaid....especially in this paranoid and horrid place called ET.
     
    #54     Jun 9, 2009
  5. NoDoji

    NoDoji

    The true professionals who post on this site actually provide valuable input, and you are one such person. Thank you for posting your scaled trades; it's provided me (and I'm sure many others) with insight into the value of this method.

    Every neighborhood has its crazies; it's best to ignore them.
     
    #55     Jun 9, 2009
  6. MarkBrown

    MarkBrown

    just wondering what is the average trade length in minutes?

    oh and when i said long term i should have said working over a long period of time like years. didn't mean like long term trading, sorry.
     
    #56     Jun 9, 2009
  7. xxxskier

    xxxskier Guest

    thanks for the kind words...which are few and far between on ET. i also happen to like your journal wehich i've been following and consider to be one of the better threads on ET.
     
    #57     Jun 9, 2009
  8. xxxskier

    xxxskier Guest

    the days i make the most money are typically when i have one trade that lasts most of the day. so the avg. trade for me is x hours. on such days i make between 1.5k - 3k, and occasionally more. on days where the first trade doesn't work out i usually end the day with less then 1k profit or in the red.
     
    #58     Jun 9, 2009
  9. Buy1Sell2

    Buy1Sell2

    You are beginning to realize why scaling is inferior behavior. Good fortune on the rest of the journey!--Ishmael:)
     
    #59     Jun 10, 2009
  10. I will give you an example, lets say you are in a trade which you think will make say 5 points. You scale out 1/2 your position at 3 points and bring your stop to break even.

    There are now 2 possibilities after this occurs.

    1) The trade goes all the way to 5 points and you made money.

    2) The trade goes back to break even and you made money.

    Now lets assume you did not plan to scale out, the the same trade goes to 3 points.

    There are now 3 possibilities after this occurs.

    1) The trade continues on to the 5 point target you made money.

    2) The trade reverses and you get stopped out at a loss.

    3) The trade reverses, you are so upset that you are about to get stopped out on a trade that could have been profitable, that you remove your stop, and start adding contracts since you know it will go back up and you can make your money back. However, you were glued to your chart and did not see on the news that North Korea just launched a nuke at the united states causing you to blow out your account even though we were able using laser guided rockets to explode the nuke harmlessly over the ocean.

    So in conclusion while you might have made more money by not scaling out, you can also have a better money management system in place by using a scale out strategy.
     
    #60     Jun 13, 2009