'Risk Monitor' Feature in Open Ecrys Platform

[Frank 10]

Saw Ecry added this feature and was thinking about this while re-reading Mark Douglass' classic book 'Trading In The Zone'

 

To me, that book is about this:

 

Fear <==== Correct Mindset (Confident) ====> Reckless

 

 

There will always be an urge for your confidence to migrate to recklessness. But when you do get reckless and trade too big, you will inevitibly create the kind of trading experience that will cause you to become afraid --- which again takes you away from the correct mindset.

 

Pg 15:

"So what is the solution? You will need to learn how to adjust your attitudes and beliefs about trading in such a way that you can trade without the slightest bit of fear, but at the same time keep a framework in place that does not allow you to become reckless."

 

Part of this framework is risk management -- and this is where OEC's risk monitor comes in. Setting your account to only allow 'liquidation trading' (exits only) if you lose a certain amount of money seems like prudent way to counter human natures urges. You could set this tight or loose. I was thinking of setting mine relatively tight -- and then taking a break if hit... kind of like in poker -- start with a smaller chip stack and feel things out -- if you lose it, not end of world. If you grow it, now you have some chips to really play with.... Not sure, just exploring this.

 

If anyone has any thoughts on how they are using this feature, by all means chime in....