Split's effort to reduce trade losses-

[Splitlink]

The market took back all my gains last week and I am going to look into this and try to trade more carefully, losing minimum amounts.

Using a TF of 5M I have assumed that 0835 was the high for the morning and set a fair value 5413 for the short period that we have been open.

Sold FT 0902 5413. When +6 placed SL at 5413---Break even Stopped 0920

Repeat 0923 Sell 5412.8. Stop was going to be 6 points but decided to go above the high for 8 points.

This saved me, as I went to -7 before the price reversed.
Moving stop to breakeven 5412.8.
My problem, as mentioned yesterday in the "Sunday Debate" series, is that I disdain profits of around 10 points and end up with the trade in loss, not always, thank God, but enough times to annoy.
I've decided to take these few points and learn some humility! Bought to close 5407 for 5.8, but I have an idea that I will go a long way in a long time by doing this!

 

[HawkTrader]

This should be an interesting read as this is probably what everyone (should) be aiming at, not the latest entry method.

Any chance of posting some charts, Split?

 

[oiltanker]

i did short after 10am but have cut it based on the theory ftse climb stairs going up but jumps out the window on the way down. i see no jumping out the window so suspect we be going up.

 

[oiltanker]

how does fair value work? is that market profile auction theory stuff

 

[Mr. Charts]

Split, isn't this what happens in a choppy market, esp. during the summer?
Maybe it's worth taking smaller amounts during such times.
Maybe think about the volatility of the instrument you're trading in the appropriate time frame and when you get that profit then taking half the position size off the table and letting the other half run for another similar amount. Perhaps move your trailing stop on the second half to the exit point of the first half.
Just a few thoughts, though no doubt you've already considered them.
Richard

 

[oiltanker]

mr charts

How to Make Money Trading Markets link gives a file not found

 

[Splitlink]

This should be an interesting read as this is probably what everyone (should) be aiming at, not the latest entry method.

Any chance of posting some charts, Split?

This is what I did.. Now I still have a shorting mentality this morning, but no-one knows, of course! There's a trend line running up that the price is bouncing off but it's a chop, this morning. I've tried a short at 1227 for 5404.8. Stop 8 points.

 

[Mr. Charts]

mr charts

How to Make Money Trading Markets link gives a file not found

Fixed

 

[Splitlink]

how does fair value work? is that market profile auction theory stuff

MP has marketed the term fair value but I believe that there is an easier way of doing it
than that a-z stuff.

I draw a line through the bars, any TF you like, and the maximum number must be the same as the MP bell shaped model. I don't see how it can be any different.

For me, it's a signal line and as good, or as bad, as any other.

TRO, who is a scalper, so I don't follow him much, does that. I find his stuff very complicated but I have picked that out and I think it has some merit.

 

[Splitlink]

In any case, I got stopped of that one.

Hey! I'm 1.8 points ahead this morning! Lunchtime.

 

[oiltanker]

thanks.

there is an mp indicator for mt 4 but haven't used it.

 

[Splitlink]

Split, isn't this what happens in a choppy market, esp. during the summer?
Maybe it's worth taking smaller amounts during such times.
Maybe think about the volatility of the instrument you're trading in the appropriate time frame and when you get that profit then taking half the position size off the table and letting the other half run for another similar amount. Perhaps move your trailing stop on the second half to the exit point of the first half.
Just a few thoughts, though no doubt you've already considered them.
Richard

Hi Richard,

You are right, of course. I'm trying to solve a problem that I have with cutting losses. It has nothing to do with my normal trading which is, usually, fairly satisfactory. These trades are minimum,ie 50p, and they are not going to break me and it is, either, in or out. No half and half stuff, this morning!

Thanks for your interest. I will be reading your new thread later.

I thought that it was a thread, but it was a post. I've read it, anyway!

 

[rathcoole_exile]

I disdain profits of around 10 points and end up with the trade in loss, not always, thank God, but enough times to annoy.

Split, have you tried looking at trading 2 contracts ? close the first one at +5 or whatever, enough to cover your trading costs plus a little profit, then bring your Stop on the second contract to BE and see if you get a "runner"

Of course you get stuffed when the market turns against you immediately and you lose 2 contracts at -6 or whatever your original SL was,

but the reward may outweigh the risk ?

 

[Splitlink]

Split, have you tried looking at trading 2 contracts ? close the first one at +5 or whatever, enough to cover your trading costs plus a little profit, then bring your Stop on the second contract to BE and see if you get a "runner"

Of course you get stuffed when the market turns against you immediately and you lose 2 contracts at -6 or whatever your original SL was,

but the reward may outweigh the risk ?

Yes, sounds good. I'll try that this afternoon.

Second session---who needs hollidays?

 

[Mr Flibble]

Letting your profits run and cutting your losses? Not much wrong there, don't tinker is what I say. You may get 10 losses for every one win but that one winner could be way more profitable. Its a bit like the opposite to risky trading where you can blow your account after one big run against you.

Also those tight stops should give your heart a rest.