09

[elovemer 10]

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[BlowFish 10]

... as with any system... trade management is the most important component to success

... this system provides the trader only with an entry.... and a (possible) exit... and a stop

...once in... it is up to the trader to manage the trade and make the system profitable.

... if you get in and the trade goes your way.... it is up to you to take some off (where?) or to hold on full position for full move

.... or to hold on even thru 10 point level....

... if you have a 3 point stop... and you enter at 9 ... and it goes 12... you lost 3 points

... if you enter at 10... you lost 3 points if it goes 13 points

... if you enter at 9... and it goes your way .... and it goes 3 points from the turn....

... should you move your stop? and to where ?

... if it goes 3 points in the money on the trade.... do you move your stop? to where ?

 

... this is trade management... and it is only thing that really matters with any trade system.... the system you are using is secondary...

 

I certainly wont disagree with that . I wonder how you might manage this type of trade? (Actually or hypothetically). personally I would be uncomfortable with a trade that has been +7.5 getting stopped at -3. BUT as we are saying the S&P tends to move in 10 points a swing it seems to get the best out of this we need to do just that , give it a lot of breathing space?

[BlowFish 10]

.... i will probably just end up putting my screen shots and signals on my blog

... that way i get no headaches.

 

I understand that this is for you however I infrequently look at blogs. From my point of view (which I understand is irrelevant:)) I like to see it here where things show up in 'new posts'. Actually I do have a renewed interest in following along now you have clarified a couple of things.

[elovemer 10]

47.25.....38.25--37.25 globex not rth

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turn was 37.5 ... plus 3 from the turn is 40.5

if it goes 3 points from the turn.... the trader might begin to manage the trade

(taking some off and letting the rest battle, or moving stop to the turn at 37.25 for a break even stop, or both.)

 

... if it can't go more than 3 points from the turn... etc.

... if it can't go higher than 40.25 ... then ... etc.

 

... if the trade goes 6.5 points from the turn, i.e. 43.75, and the trader does nothing

....then the trader is quite dumb

...

... If you enter at 9... And it goes your way .... And it goes 3 points from the turn....

 

... Should you move your stop? And to where ?

 

... If it goes 3 points in the money on the trade.... Do you move your stop? To where ?

Edited January 15, 2010 by elovemer

[elovemer 10]

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[elovemer 10]

... if a trader is short from 47.25

... how does he/she know whether to close out or reverse the trade at the long signal

... or

.. remain in the trade.. with hopes of a 20 point move instead of only 10 ?

[elovemer 10]

from globex 42.5

....32.5 would be next long signal

not rth signal

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from globex 37.5

.... 47.5 would be next short signal

not rth signal

Edited January 15, 2010 by elovemer

[elovemer 10]

trend... don't play

 

42.5 became 44... 34 signal

3 pnt stop is 31

low was 31 ... wld be stop out

 

from globex 42.5

....32.5 would be next long signal

not rth signal

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from globex 37.5

.... 47.5 would be next short signal

not rth signal

[elovemer 10]

47...27

 

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[elovemer 10]

27.5

.......36.5--37.5

 

37.5 is also 50%

[elovemer 10]

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[elovemer 10]

37.75 hit ..... on 37.5 signal

 

.. 3 points is 34.75

[elovemer 10]

37.75

.....28.75--27.75

[elovemer 10]

stop 25.75

low 26.25

 

3 points.... trade management (move stops to 26.25 for example)

29.25

 

6.5 points... trade management (take some/all off for example)

32.75

37.75

.....28.75--27.75

[elovemer 10]

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[elovemer 10]

26.25

.........35.25--36.25

[elovemer 10]

... trade management is not necessary when the trade goes against one

... but very very important... when the trade goes in one's favor

 

..... moving stop to break even... when ?

.... trailing stop ... when ?

.... take some/half off ? when ?

... take all off ? when ?

 

stay in trade at 10 points, or reverse position ? when ?

[elovemer 10]

globex

26.25.....46.25

 

26.25

.........35.25--36.25

[elovemer 10]

.. if trend,

either stay out... or focus on 20 points instead of 10

[elovemer 10]

47

.....38--37

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[elovemer 10]

47.....38 ...

trade management at 41

Edited January 20, 2010 by elovemer

[elovemer 10]

47....27

again

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[elovemer 10]

until the range is broken.... 20 points is the signal to watch

[elovemer 10]

25.25......45.25

 

=================

[elovemer 10]

for trend market.... use fade system on 10 pnt basis

for example....

if one believes there is trend....

 

on wednesday 47...38 and 43....33

the method is to reverse position on a 4--5 point gain

 

the objective is to use the counter trend trade to fund an entry in the direction of trend