Managing Trades: Multi-trades

trendie

Legendary member
6,262 1,015
I have been reviewing my past years trades, and putting together a plan to see if my trading can improve.
One concept I am looking at is taking three of four trades, based on my signals, and aggregating the position.
(rather than a clear SL on each individual trade)

The reason behind this is, if I look at all the trades I closed out for a loss, and then looked at how long it took for the market to return to the price, I find that price generally returns, in a meander.
Obviously, not true in a breakout.
Also, the price might spike far away from initial entry. (hence the aggregating)

But, my initial research (broad-brush, not detailed as yet), is showing that managing a number of trades seems likely to "improve" my trading.
I am conscious I may be biased here, and my desire to reduce my losses is the driver here. I need to check if my MAE is affected, margin requirements, etc.

Question: look at all your losing trades, and look at how long it took for price to return to it.
Question: look at all your consecutive losses, and if you held onto them, could you have closed out at an aggregated lower loss, or break-even?

PS: I will, in my research, simply take all buys and sells, and then manage those aggregated positions.
(and see that if I am trading in the correct direction, my nett positive direction trades outperform my nett losing positions)
PS2: I also need to check if the increased positions affects my percentage increase in account size.
PS3: My research so far doesnt take overnight charges into account.

Generally, do you have any plans to implement for the new year?
 

counter_violent

Legendary member
9,809 2,518
I have been reviewing my past years trades, and putting together a plan to see if my trading can improve.
One concept I am looking at is taking three of four trades, based on my signals, and aggregating the position.
(rather than a clear SL on each individual trade)

The reason behind this is, if I look at all the trades I closed out for a loss, and then looked at how long it took for the market to return to the price, I find that price generally returns, in a meander.
Obviously, not true in a breakout.
Also, the price might spike far away from initial entry. (hence the aggregating)

But, my initial research (broad-brush, not detailed as yet), is showing that managing a number of trades seems likely to "improve" my trading.
I am conscious I may be biased here, and my desire to reduce my losses is the driver here. I need to check if my MAE is affected, margin requirements, etc.

Question: look at all your losing trades, and look at how long it took for price to return to it.
Question: look at all your consecutive losses, and if you held onto them, could you have closed out at an aggregated lower loss, or break-even?

PS: I will, in my research, simply take all buys and sells, and then manage those aggregated positions.
(and see that if I am trading in the correct direction, my nett positive direction trades outperform my nett losing positions)
PS2: I also need to check if the increased positions affects my percentage increase in account size.
PS3: My research so far doesnt take overnight charges into account.

Generally, do you have any plans to implement for the new year?
How long have we got ! 😬

Whenever considering aggregation one must also consider position sizing and number of entries etc.
Bear in mind that most brokers allow hedging these days, so it's entirely possible to play both sides until one sides winning position > the other sides losing position. Overall aggregate position in profit.
Takes patience to play this game mind and also have to rely on pending orders to enable a market neutral position to deal with sudden or extreme market movement, overnights, or time away from the PC.
The broader concept is, that if you can't make a profit today, then you can manage it all again tomorrow. Rinse and repeat.
 

fibo_trader

Veteren member
3,725 73
I am conscious I may be biased here, and my desire to reduce my losses is the driver here.

Generally, do you have any plans to implement for the new year?

Put the same energy spent on trying to reduce losses into trying to generate massive wins - the former follows the Law of Diminishing Returns, the latter has sky as the limit. Think big, boy - you shoot yourself in the foot right at the starting gate by thinking soooooo small.

Since you are Hindu, you know this already ..................... in the Business world Hindus are the preeminent champions of drastically reducing overhead. Sure its a good thing to keep your overall costs down. To get a glimpse into why its better to instead focus on exponentializing production by blowing all doors wide open, all one needs to do is look at the American mentality compared to the Hindu one.

The forte of the American is to blast the doors wide open. The forte of the Hindu is to cut overhead costs dramatically. Combine 2 such cats for the ultimate partnership known to Man.

The match made in Heaven is therefore some % aspect of the combination or for an American to hire a Hindu to keep an eye on the backdoor.

INDIA + AMERICA = best combo for business, for TRADING mentalities ............... from an overall perspective
 

trendie

Legendary member
6,262 1,015
How long have we got ! 😬

Whenever considering aggregation one must also consider position sizing and number of entries etc.
Bear in mind that most brokers allow hedging these days, so it's entirely possible to play both sides until one sides winning position > the other sides losing position. Overall aggregate position in profit.
Takes patience to play this game mind and also have to rely on pending orders to enable a market neutral position to deal with sudden or extreme market movement, overnights, or time away from the PC.
The broader concept is, that if you can't make a profit today, then you can manage it all again tomorrow. Rinse and repeat.
Yes, I will consider position-sizing, of course. (goes without saying)
It has been a source of interest to me, that my Stochs signals follow a "higher-low" or "lower-high" patterns when getting signals.
I have been mulling the idea of taking each new signal to build a position, as presently I just take singular trades.
Lots of number-crunching for me!
 

trendie

Legendary member
6,262 1,015
Put the same energy spent on trying to reduce losses into trying to generate massive wins - the former follows the Law of Diminishing Returns, the latter has sky as the limit. Think big, boy - you shoot yourself in the foot right at the starting gate by thinking soooooo small.

Since you are Hindu, you know this already ..................... in the Business world Hindus are the preeminent champions of drastically reducing overhead. Sure its a good thing to keep your overall costs down. To get a glimpse into why its better to instead focus on exponentializing production by blowing all doors wide open, all one needs to do is look at the American mentality compared to the Hindu one.

The forte of the American is to blast the doors wide open. The forte of the Hindu is to cut overhead costs dramatically. Combine 2 such cats for the ultimate partnership known to Man.

The match made in Heaven is therefore some % aspect of the combination or for an American to hire a Hindu to keep an eye on the backdoor.

INDIA + AMERICA = best combo for business, for TRADING mentalities ............... from an overall perspective
Absolutely, F_T.
By building positions, rather than single trades, I could be accumulating positions for extended runs, as per your suggestion of thinking big.

I am not a Hindu. I was brought up by secular-Hindu parents, but they were smart enough to not impose these ideas on me.
I am essentially atheist.
If I want to experience god I will buy myself a Persinger helmet.
 

fibo_trader

Veteren member
3,725 73
Absolutely, F_T.
By building positions, rather than single trades, I could be accumulating positions for extended runs, as per your suggestion of thinking big.

I am not a Hindu. I was brought up by secular-Hindu parents, but they were smart enough to not impose these ideas on me.
I am essentially atheist.
If I want to experience god I will buy myself a Persinger helmet.

About the Hindu aspect, thanks, got it. Atheist is good. I referred to you as being Hindu because in some of your posts I read, esp. when you mentioned how you shook your head in consternation about some of the stuff your Mummy said to you in the sphere of Philosophy. My first thought and still primary thought on this subject is, "what a lucky guy to have such a fine mother" - if I was so lucky, I would sit and listen to her for hours if not days and months.

Your Hindu "blood" shines thru' that English body like a searchlight and will actually save your ass in the long run and dig you out of morass you are in as being English, surrounded by duffers that should be sent to Iraq.

:) :whistle:You and only you may go in Peace. :):):)
 

fibo_trader

Veteren member
3,725 73
Absolutely, F_T.

By building positions, rather than single trades, I could be accumulating positions for extended runs, as per your suggestion of thinking big.



Yes, yes, yes, but also way more than just this. To really understand the scope of "think big" I will call on Warren Buffet who actually puts it best ................... you gots to know when the opportunity has came-d and then take the BIG SWING.

If you follow that concept you will free yourself of countless hours of TRADING SCREEN TIME = a very low form of wages because if you take the 95% of traders and even if you subtract the blown accounts, i.e ignore them ................ you would have to divide their meager profits by #hours spent at the screen eyeballing trades = lower wage than even McDonald's.

Think big, trendie, big, I mean real big. And voila when it hits you will be on a different plateau where FREEDOM starts to make such sense.

Can you imagine the low level thinking that 95% of populaton have in thinking about their 8 hours at a job they hate, 2 hours in commuting, then getting home tired - all this for such meager wages as 60k/yr or even 80k/yr or even 120k/yr ......... the higher they go the more unhappy they are becaue their needs expand .

Solution? Blow earnings out the friggin roof by having or developing the skills and balls to take the big swings.
 

trendie

Legendary member
6,262 1,015
I get what you're saying, F_T.
I have found I make more money with less stress when I am also freelancing, as I have to take longer-term trades, and thus fewer trades making more.
I understand that. Patience to allow a trade to breathe into big bucks.

I think many traders dig themselves into a hole by trying to make money every day because they only have trading to bring in money, so feel compelled to snatch at small moves each day.
Traders should build a decent bank so they dont need to make cash every single week.
Or work as well, as their bank builds, until they can ditch the job.
Anyway......
 
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fibo_trader

Veteren member
3,725 73
I get what you're saying, F_T.
I have found I make more money with less stress when I am also freelancing, as I have to take longer-term trades, and thus fewer trades making more.
I understand that. Patience to allow a trade to breathe into big bucks.

I think many traders dig themselves into a hole by trying to make money every day because they only have trading to bring in money, so feel compelled to snatch at small moves each day.
Traders should build a decent bank so they dont need to make cash every single week.
Or work as well, as their bank builds, until they can ditch the job.
Anyway......


Amen! Welcome to the world where TREND SURFERS hang out. These cats spend so little time looking at the screen its downright ridiculous because #hours is in the denominator so the ratio of nett profits to #hrs can approach infinity, you get the picture. Once you have a decent sized bank trading capital account, you can afford to ride the trend and let your profits run to the natural extinction of the trend. No problem starting with the 5-min. chart, then moving on up to the levels to eventually get to the Daily where the pros hang out. The profits become staggering when you're operating off daily and like you said ................. very little screen time, so much less stress, so much more family time, so much more time for studying, checking out techniques and whatnot.

Small number of trades per month = small # of times you have sex per month ................ but every single one is a whopper of a gain and in the case of the latter, to the recipient who will be walking on clouds till the next episode.

:)
 

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