We want to Develop a Trading Method.

rkkarnani · #21 15th April 2008, 12:17 PM

Quote:

Originally Posted by uasish

Vikram,

Somehow i am not comfortable in Putting priority for Entry ahead of Stop Loss,though every where it is like that,personally i will decide the Stop 1st before Entry & try to initiate a Trade more closer to the Stop,well this is my subjective defensive approach.

Asish

But Ashish da , how can we have a SL level unless we have a entry point. One may decide the SL in terms of points or percentage but not the level independently. Entry level has to be there to evaluate SL, yes we may opt to enter or not enter a trade after considering the SL value.
Priority to entry level, I think , has to be given and then only we get a SL level and then decide as per one's comfort level or trading rules whether the SL PERMITS US TO TRADE or the quantity to trade!!!
May be this is what you also are hinting at!!!!! Do correct me if I am wrong.
Best regards.
-R K Karnani

uasish · #22 15th April 2008, 01:36 PM

Quote:

Originally Posted by rkkarnani

But Ashish da , how can we have a SL level unless we have a entry point. One may decide the SL in terms of points or percentage but not the level independently. Entry level has to be there to evaluate SL, yes we may opt to enter or not enter a trade after considering the SL value.
Priority to entry level, I think , has to be given and then only we get a SL level and then decide as per one's comfort level or trading rules whether the SL PERMITS US TO TRADE or the quantity to trade!!!
May be this is what you also are hinting at!!!!! Do correct me if I am wrong.
Best regards.
-R K Karnani

When we come to know about a Pivotal Low ,already few % Up but the Stop is defined,unless Risk is quantified how can i go for position sizing,a fixed % stop is not my cup of tea,here i may be subjective.
Entry signal gets converted to trade only after the Risk is quantified.

kkseal · #23 15th April 2008, 02:48 PM

101% in agreement with Asishda.

Regards,
Kalyan.

dhakkan · #24 15th April 2008, 04:00 PM

Asishda/Saint explained at kolkata … (hope I understood correctly).

Let "x" be the amount I can afford to lose…
Stop loss points be say "s" and the price per point be "p"

My quantity is then = x/( s *p )

So unless I know my stop loss how can I calculate with what quantity I have to enter….

Asishda/Saint.. please correct me if I am wrong...

SGM · #25 15th April 2008, 04:25 PM

here for cash p = 1 and q = no of shares

for fno p = lot size and q = no of lots

Promod.. please correct me if I am wrong...

dhakkan · #26 15th April 2008, 04:31 PM

Sanjay,

thanks for the explanation... but you are embrassing me... How can I correct you..

you are the guru....

uasish · #27 15th April 2008, 06:33 PM

Q = X / abs(S - P) ; both for Long & Short

kkseal · #28 15th April 2008, 08:29 PM

Can we have a formula based on Risk-Reward instead of 'X'?
(The RR would be based on entry, target, & Stop and the tgt would be a conservative 1st tgt)

Regards,
Kalyan.