Welcome to the Traders Laboratory.

Ultimate Trade Analyzer Discussion for Ultimate Trade Analyzer owners to share results, questions and other feedback.

Reply
Old 01-08-2011, 07:33 AM   #17

Join Date: Jul 2010
Posts: 1
Ignore this user

Thanks: 0
Thanked 0 Times in 0 Posts

Re: SST Money Management Warning & Backtesting

Gotta side with Mr MMS on this one. Of course I can't vouch for the SST (its a trend follower I believe), but if I am playing the CL and ES with 2% risk (even with a significant edge)on each that may be okay, but if I add NQ, RUT, YM and some others at the same time, a bad chop spell will surely cripple me.

razor
razor99 is offline  
Reply With Quote
Old 01-16-2011, 10:53 AM   #18

Join Date: Jun 2010
Posts: 49
Ignore this user

Thanks: 5
Thanked 11 Times in 9 Posts

Re: SST Money Management Warning & Backtesting

I thought I'd give a warning based on my own experience using the new hydraulic nail gun I got for christmas. This thing really flies. I could build a new fence in my back yard 10 times faster than swinging a hammer. And, no more painful purple finger nails. In fact, no more finger nails at all. I have blown off 5 of my ten fingers in no time at all. And I still don't have a fence. Guess I should have read the rules more carefully, taken the responsibility to get better trained, and come up with a plan that didn't have my fingers as part of it. What a lousy nail gun.
Tiobingo is offline  
Reply With Quote
The Following 3 Users Say Thank You to Tiobingo For This Useful Post:
btrader (01-17-2011), SIUYA (01-16-2011), tjnoon (01-17-2011)
Old 01-16-2011, 01:36 PM   #19

Join Date: Feb 2007
Location: San Francisco
Posts: 89
Ignore this user

Thanks: 17
Thanked 34 Times in 16 Posts

Re: SST Money Management Warning & Backtesting

Ha ha! Lol.. Very funny Tio. But all jokes aside, I think you make two very important points. Rules! What about the rules? A trade system is only as good as the rules that go with it. Bharding talked about sticking to his rules but it appears the rules were drastically flawed. Also, taking responsibility for one's own trade decisions. I like to blame my wife too, but I always end up losing worse when I do that. She's always right!

SST stands for Seven Summits Trader. The reason we chose that name was to remind traders of the Seven Keys to Successful Trading. It appears to me that bharding forgot about or neglected to pay attention to 3 critical 'summits' or keys; Tradeplans, Capital Preservation and Total Immersion Training (and please realize that I say this with complete respect and empathy with what he experienced and only mean this to be constructive). But we talk about key level adjustments, standing down for news events, dynamic goal setting that allows you to take what the market will give you, NOT what you impose on the market -- we call it, the Power of Quitting and believe me, there IS tremendous power in quitting at the right time each session, when to trade and more importantly, when not to trade, etc. These things are also part of the SST.

Bharding mentions that not one coach explained to him the need to trade a small number of pairs. I think it is up to the trader to seek out and get the total immersion training that is needed. We do our best to make it available with a live traderoom, active owner's club, video walkthrus and recaps, published tradeplans with tight and concise rules, free informational webinars, etc. We have often talked about correlation in markets and even held a free informational webinar specific to that very topic. I think you would be far better off to actually take responsibility for your own trade decisions rather then try to blame the dog, wife, Netpicks coaches, etc.. Again, I say this constructively in an attempt to help you become a better trader. In the end, whether we like it or not, we wind up taking responsibility anyways as reflected in the balances of our own trade accounts.

A few questions came to mind when I read your post. What timeframes were you trading (what charts)? WHY are you trading for 7 straight hours (5 to midnight)? Netpicks coaches always talk about 'less is more.' You mentioned 2 months of backtesting. What did you backtest for 2 months? ALL the markets you traded? Did you actually put in your time to do your 25 consecutive mistake free trades on each in a live sim accnt -- as pounded by all the NP coaches AND as suggested in the Quick Start guide that came with the SST training materials? Did you start over again at trade zero when you made a mistake on say, trade number 23? (I mean, not even a super human could trade 7 straight hours a day on ten markets without making mistakes which incidentally, would really hurt one's trade results, at no fault to the system.) This is critical to PROVE you can actually trade your tradeplan according to its rules. It helps reinforce your knowledge of the system (what if you were unknowingly making mistakes? Yikes that would lead to a disastrous end result!) while also putting your tradeplan to the test to see if the stats continue to hold up while you practice actually 'executing' your trades in real time. By the way, did you actually produce a document, a written out 'official' tradeplan? If so, you can now go back and identify the problems with it and improve it. If not, then you really don't have a tradeplan at all. At least, not one that you can hold accountable.

You also mentioned your messy spreadsheet. As an NP coach myself (and a musician), I ALWAYS talk about practicing how you intend to play. Practice hard, play hard. Practice 'messy,' play 'messy.' We have a tool called the UTA which when used properly, would never allow you to practice messy. Ironically, that is what this sponsored forum began as. Are you using the UTA? Bad habits are hard to break so one is better off developing 'best practice' habits from square one.

I like to compare trading to piloting an airplane. If you don't master the instruments, rules of flight, physical ability to use all the levers and buttons, put in the necessary hours of practice time, etc. then there is a high probability that you will crash and burn. Treat your trading with the same respect OR expect to also crash and burn. As MadScientist suggested, consider it tuition, learn from the experience and hopefully what you have learned will help you get closer to becoming successful and recouping. But it begins with taking responsibility for crashing and burning on your own and NOT because of something that someone else failed to teach you. We can all learn something from bharding's experience.

Last edited by tjnoon; 01-16-2011 at 01:45 PM.
tjnoon is offline  
Reply With Quote
The Following 2 Users Say Thank You to tjnoon For This Useful Post:
MadMarketScientist (01-16-2011), Wcd (01-18-2011)

Reply

Thread Tools
Display Modes Help Others By Rating This Thread
Help Others By Rating This Thread:

Similar Threads
Thread Thread Starter Forum Replies Last Post
Best Money Management Book for Futures Trading? jeffgroove Money Management 12 01-25-2011 05:57 AM
VSA Official Summary Part 2 Soultrader Volume Spread Analysis 8 12-25-2010 03:36 PM
A New Paradigm in Money Management UrmaBlume Technical Analysis 4 02-04-2009 08:08 AM
VSA Official Summary Part 1 Soultrader Volume Spread Analysis 1 08-01-2008 05:29 AM
Money Management: The True Holy Grail Soultrader Money Management 12 05-22-2008 07:48 AM

All times are GMT -4. The time now is 11:22 AM.
Copyright ©2000 - 2017, Jelsoft Enterprises Ltd.
CS to VB integration by DeskLancer
2006-2011 Traders Laboratory, All Rights Reserved.