Random trading thoughts

[livingston]

Whilst working hard today trying to get to my usual daily pip target I began wondering if the following random trading process may work :

buy or sell at random (coin toss) at close of business (5pm est) apply 100 pip target, 30 pip stop loss.

1 of 3 things closes the trade stopped out at -30 or 100 pip profit or close at 5pm est.

This is certainly not how I trade, nor can I ever see myself doing it but I wondered if anyone has any comments or has backtested something like this?


Livingston

 

[trendie]

Welcome to the club!!

I did some posts a while ago about random-entry.
Do a search for thread titles containing "coin", you should find one.

Also, Fettered Chinos recently posted a series of coin-flips, ( using Cillit Bang, although I prefer Citrus Flash ).
Search for thread title containing "sword". You should find it.

You wont find any great system, but you will learn a lot about statistics and probability.
And get a lot of derisory comments and leg-pulling from "better" traders.
Have fun.

Good luck.

 

[livingston]

Thanks for the input, I will check out the threads.

Happy trading.

Livingston

 

[Satori]

I can't remember which 'famous' trader it was, but one of them once claimed that he could make more money picking his trades on a coin flip than most of his students/underlings/whatever could with all their complicated entry criteria, simply because he applied better money management, stops and exits.

 

[glide]

Money management

I can't remember which 'famous' trader it was, but one of them once claimed that he could make more money picking his trades on a coin flip than most of his students/underlings/whatever could with all their complicated entry criteria, simply because he applied better money management, stops and exits.

True, money management is everything and it comes from knowing yourself (what you want vs. what you allow, is one) . I tend to scalp (in addition to swing and pos trades), all I am willing to pay is 3 pips + spread, so max expense is 6 pips, and I can do 80+ a day. I take profit at first sign of weakness. This is set in stone, no matter what... unless a scalp turns into a swing which it often does. Never marry a position.... Happy trading.

 

[Rossini]

Dr. Van K Tharp wrote in his book 'trade your way to financial freedom' that money could be made this way. His view being that posision sizing and risk control are of much greater inportance than a good entry. He has shown the positive results in his book proving it can be done.