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Showing results for tags 'watts'.
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I've been rather poor at keeping a trading journal in the recent past. So I've decided to start a journal here. I hope by posting daily updates (or nearly daily updates since I most likely won't post if I don't trade) I will feel more compelled to trade well. Hell, everyone can see my trades (the good, the bad and the ugly), right? So I better do this well.So, my hope is with this new accountability of showing my trades to fellow traders on this site, I may become more strict when executing trades against my trading plan. I've been also toying with the idea of recording my trades with a video screen capture program and a microphone. But that's another story. I'm trading the EC market on a simulated account with TradeStation. I follow a variation of the Watts scalping method. Below are a few of my key management rules which will most likely evolve over time. Trading Times: 5:00am - 830am central. Screens: 2225t long-term trend screen. 445t intermediate-trend screen and a 89t chart to pin-point entry and exit. Position Size: I follow a repeating sequence: First trade of the day is done with one contract. If it's a winner I trade 2 contracts on the next trade. If this two lot position is a winner I go back to 1 contract and start the sequence all over again. All losing trades revert to 1 contract on the next trade. Target 1: First target is 6 ticks from entry. Target 2: Either 6 ticks from entry or runner. This is another discretionary area. If I perceive the market as "choppy" I will simply exit at 6 ticks. If I perceive the market as "trending" I will allow this second contract to trail. I use an opposite Keltner channel to exit. Risk Per Trade: The maximum to risk is 20 ticks (20ticks * $12.50 per tick = $250). Many of the setups will risk far less per trade. When to Stop Trading: After two consecutive losing trades, stop trading for the day. After two consecutive winning trades, stop trading for the day. Maximum Day Loss: $300. Again, my goal is to trade well - not to make money. Yep, that's right! I need to execute my plan as described and not get emotional and enter trades that I should not take. This has been a major problem. So, here I go.
