Information to transformation is biggest journey a trader undergoes,lot depend on the information ,it includes Money management,style of trading ( setup based aka discretionary trading or rule based aka systematic trading),Many misconception are there on MM as well as trading,so which eats trader trading life to large extent, time lag in mis information leads to delay in transformation.. This is main cause were people will stuck in single lot for years another issue it rises in our mind is Return on capital is depend on capital we trade,but it lot depends on MM and trading system (Rules based or discretionary) !!
My Journey In Technical Analysis
- Thread starter XRAY27
- Start date
Vijay !!! as i said there are many myths about entry, to MM, first is add on or all in..first doesn't have any systematic rule based way,MM of fno is based on FRMM,cash market will be in general on FFMM..many trade with FFMM ,which is the main reason, they stuck with single lot (provided it is mechanical system and tested it)
Return on 10 L or 10 CR is will be same for mechanical system if trading on index fut..many think that 10L we can have higher rate of return vis a vis 10 Cr. as i said lot dependent on information and transformation...
Return on 10 L or 10 CR is will be same for mechanical system if trading on index fut..many think that 10L we can have higher rate of return vis a vis 10 Cr. as i said lot dependent on information and transformation...
Since you mentioned this .......... Look up Brent Penfold ........... I dare say you might find his take on the issue ....... well ..... quite illuminating!!!
Hypothetically Yes. Practically No! A mechnical system has defined entry points! A mechanical allocation method for a capital of 10 CR will be large enough to move the market unfavourably!!! One will necessarily have to find innovative methods to skin this particular cat!!!
Look up what tactic Livermore employed to get out of his shorts during the great meltdown of the twenties before the market reversed for good!!!
Hypothetically Yes. Practically No! A mechnical system has defined entry points! A mechanical allocation method for a capital of 10 CR will be large enough to move the market unfavourably!!! One will necessarily have to find innovative methods to skin this particular cat!!!
Look up what tactic Livermore employed to get out of his shorts during the great meltdown of the twenties before the market reversed for good!!!
Stoploss :Many think that market .... ,so called operators hunt down the SL,but Setting no stops, although an easy way out
, is not a viable alternative to setting reasonable stops to safeguard against unrealized losses. However,the definition of a reasonable stop is not etched in stone, and it is very much dependent on prevailing market conditions and the trading technique adopted by the trader.
Trading Technique,structural pivots low and high, volatility stops,Fixed % ISL (Initial stop loss),which one you are gonna adopt..lot depends on Back test...Fixed % ISL is more effective way for my system,whats yours ??
, is not a viable alternative to setting reasonable stops to safeguard against unrealized losses. However,the definition of a reasonable stop is not etched in stone, and it is very much dependent on prevailing market conditions and the trading technique adopted by the trader.Trading Technique,structural pivots low and high, volatility stops,Fixed % ISL (Initial stop loss),which one you are gonna adopt..lot depends on Back test...Fixed % ISL is more effective way for my system,whats yours ??
Stoploss :Many think that market .... ,so called operators hunt down the SL,but Setting no stops, although an easy way out, is not a viable alternative to setting reasonable stops to safeguard against unrealized losses. However,the definition of a reasonable stop is not etched in stone, and it is very much dependent on prevailing market conditions and the trading technique adopted by the trader.
Trading Technique,structural pivots low and high, volatility stops,Fixed % ISL (Initial stop loss),which one you are gonna adopt..lot depends on Back test...Fixed % ISL is more effective way for my system,whats yours ??
, is not a viable alternative to setting reasonable stops to safeguard against unrealized losses. However,the definition of a reasonable stop is not etched in stone, and it is very much dependent on prevailing market conditions and the trading technique adopted by the trader.Trading Technique,structural pivots low and high, volatility stops,Fixed % ISL (Initial stop loss),which one you are gonna adopt..lot depends on Back test...Fixed % ISL is more effective way for my system,whats yours ??
Bcos I can afford only 20pt stop in BNF, i will use 20pt and then look for SL hunters/operators to blame
The size and more importantly the level of the Stop should be such that the probability is favourable, otherwise one should just sit on the hands.
whats yours ?? specifically to BNF, i've tried using opposite trade options instead of hard fixed stops and has worked well when there are larger than ATR bars but nothing mechanical that I can share.
and for those who dont use stops, unki tho baat hi alag hai
Similar threads
-
-
-
My journey of trading -- Traders should know that investing/trading is filled with ocean full of opportunites- Started by Maheswarra
- Replies: 1
-
-