You say you are either "in or out"......surely this implies that you dont scale into positions.....as then you would be (at some stage) only partially in.
But then you say that if the markets moves your way, you double the position.....isnt this scaling in???
So do you scale into...
AlterEgo,
The sentence may have not been entirely clear. What I meant was, that by reducing the maximum profit available on an individual trade, (and equally, reducing the maximum loss on an individual trade), I can generate a smoother equity curve.
Once I have a smoother equity curve...
Im not going to tell you exactly what I do......I will give you the vibe, which may or may not help you. If it gets you thinking about something new, that is a good result.....that is all I look for from these forums.
I got my data from a shop called pinnacle data, you can find them on the...
AlterEgo,
I have done numerous backtests over 15-20 years of data across 35 different futures.
It is obvious that adding to a position wont make as much money as doing the entire position up front......on a winning trade. But on a losing trade, the losses can be greatly reduced by...
I dont trade shares, i trade futures....I use Man.
If you want by $20k worth at $10, another $20k at $10.50, and another $20k at $11.00......that is three seperate orders....not 1 order split into 3.
Surely the brokerage is the same as for $60k in one hit?
If you are serious about your trading, you would find a broker that suits your needs. You wouldnt be lazy about your trading research, why be lazy about your broker.....they booth contribute to your P/L?
Howard,
I find that more than half of my trade lose money (actually closer to 70% lose money). Most of these go bad straight away, createing a loss on the 1/6th position.
The trades that go well.....go really well, far outweighing the losses on my many bad trades.
Essentially, the...
I dont see how scaling in and out adds to your brokerage....
If you do 2 contract, then 4 more, then another 6......you pay for 12 contracts.........if you dont scale in and just do 12 straight up, you still pay for 12 contracts?
Am I missing something here?
Gringotts,
In my trading system, I use risk management that increase trade size as my capital increase (ie, after a winning trade), as you suggest in this post.
However, more importantly, I use a leverage increasing risk management style within each trade as well. Ie, I open a trade with a...
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