[The Bear]

I've maybe done 50-100 CL (1-2 contacts at a time) trades in the tradestation account, and I've had 1 tick of slippage on 2 separate occasions. In my opinion the order entry system works well for what I do. I Don't use the tradestation account for gas trading, but my records show I had 1 tick of slippage on a mini natural gas trade for 1 contract. I've maybe done 20 mini gas trades in it. It also worked fine.

Here and there I get slippage of 1 tick on my exits but it is in my favour (limit orders).

[The Bear]

I forgot to say, STOP LIMIT orders also work fine for me in the TS account for entries and I usually don't get bypassed even in fast markets.

[darthtrader]

bakrob99, I will certainly be scaling at some point. I really can't see though putting on 2 or 3 contracts with a 5k account risk wise.

Dalton really has my head swimming now. There was some quote from Mind Over Markets about trading logic only coming from putting on trades, something like that.

So what you guys think about this. Instead of trying to make money on this first 5k YM account, set a goal of trying to put on 100 trades and break even? Use a 10 point stop and an automatic 10 point profit target. Then keep putting on 100 trade blocks with the same 10/10 stop/profit until i have made money over the 100 trades? Basically like setup batting practice. That would seem alot more logical than backtesting to try to see if you actually have positive expectancy.

[bakrob99]

I understand that you are trying to keep the risk to a small % - but explain to me please what is the difference from the trades perspective if you place 2 contracts with a 5K account or 2 contracts with a 25K account. The market doesn't know.

I have found it easier to make $$$ by scaling out of positions which allows you to let the 2nd contract run ... the only way to make up for your inevitable stop losses.

Scalping makes your broker richer and you broker.

[BlowFish]

Originally Posted by bakrob99 »

I understand that you are trying to keep the risk to a small % - but explain to me please what is the difference from the trades perspective if you place 2 contracts with a 5K account or 2 contracts with a 25K account. The market doesn't know.

--Snip--

The reason people keep limit risk on any single trade percentage of there margin is to prevent blowing up. Your risk of ruin grows significantly as you put more margin at risk on any single trade.

As an example if you had a rigged roulette table that paid red 60% of the time would you bet all of your stake each spin? How long would you last? Would you bet 2%? 10%? 50%? Why?

If you had a roulette table that paid 70% of the time would you risk more? How much more?

The objective is to stay in the game, money will come if you do (and you have a positive edge of course).

Cheers.

Originally Posted by BlowFish »

The reason people keep limit risk on any single trade percentage of there margin is to prevent blowing up. Your risk of ruin grows significantly as you put more margin at risk on any single trade.

As an example if you had a rigged roulette table that paid red 60% of the time would you bet all of your stake each spin? How long would you last? Would you bet 2%? 10%? 50%? Why?

If you had a roulette table that paid 70% of the time would you risk more? How much more?

The objective is to stay in the game, money will come if you do (and you have a positive edge of course).

Cheers.

Another reason not to overtrade and quit while you're well ahead for the day, and satisfied.

If I really traded ALL of my setups after reaching my daily goal (which was reached by noon EST already), I'd be burnt out and ready to give it all back to the market.

Even as I write this, just glancing at the screen I see 3 more setups which I didn't take....oh the horrors of it all!!!

[wsam29]

Originally Posted by cooter »

LOL. Those who don't admit that they didn't blow up or nearly kill their very first futures trading account must be world-class traders by now.

Or they are liars!!!

[bakrob99]

Originally Posted by BlowFish »

The reason people keep limit risk on any single trade percentage of there margin is to prevent blowing up. Your risk of ruin grows significantly as you put more margin at risk on any single trade.

As an example if you had a rigged roulette table that paid red 60% of the time would you bet all of your stake each spin? How long would you last? Would you bet 2%? 10%? 50%? Why?

If you had a roulette table that paid 70% of the time would you risk more? How much more?

The objective is to stay in the game, money will come if you do (and you have a positive edge of course).

Cheers.

I think you miss my point. Let's say you randomly enter long or short ... based on nothing - just flip a coin.

Can you come up with a strategy to make money under that condition?

I think you will have an easier time doing so if you have a chance to scale out and move your stop up to let the other half of your position run.


I met a trader who was complaining about losing money and was looking for a better entry technique (aren't we all). He took a mentorship with Linda Radsche - who demonstrated that she was able to make money based on random entries (long or short) by using proper money management. She demonstrated that it NOT ABOUT THE ENTRIES ... IT'S ABOUT THE EXITS.