DbPhonix
I just read an article from one proprietary trader in my country.
His style is daytrade and as I know he can make money in his career for a long time.
He said that his method begin with
1. find the exit point
2. calculate risk/reward
3. find the entry point and think about contract quantity................
He think much about risk, and think lesser about entry method.
He take many rounds in a day.
.........................
I feel that with your teaching, we trade with the price behaviour.
We enter when price show some behavior that we've test and research.
We exit when price move to the exit point of our plan.
You don't teach much about risk even though I remember that you've talk about Mamis's book.
....................
Could you please give some comment about this trader's method above.
Thank you very much, Sir.
Risk management is built into the SLA: exit when the line is broken. If stopped out of two successive trades, stop trading.
Re this trader's method, it's too general to comment on, e.g., "cut your losses short and let your profits run". None of that answers the question of "how". If he's taking "many trades in a day", he's probably scalping, and the SLA is inappropriate for scalping as it makes as few trades as possible, preferably one or two.