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tradersky

Daytrading ES

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he appears to be just trading "price" but let me tell ya something... his entries are friggin SCARY.

 

I mean, hes shooting for a fixed target of 1pt each time in the ES, which is fine and dandy (and i'm sure it helps him keep his high win rate as 1pt is typical fuzz and pop in the ES) but look for example on his last day's example....

 

3 wins right? but the last one took at least 3 points of heat before coming back up to his target for a point... is this prudent? is he even using stops? what if it hadn't turned around at all? are you willing to tank your entire account on one trade?

 

Even his trade example video shows a move taking a 5-6pt adverse move before it comes back to his 1pt target. If you want to trade like that you might as well go to the roulette table in vegas. At least there you might be able to find a hooker after you lose all you're money.

 

he says he trades only in simulation (as to avoid any monetary bias for recommending the trade???) Really? Like himself and his band of merry men with their 1 lots are going to push the market in a given direction? maybe if they were chucking 2000 lots at the market.

 

He appears to have no money management in place and in most cases he isn't even getting 1:1 on his trades.

 

I'd be VERY wary.

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That would be wary depending on the size of the account. If a trader decides to trade any systems less than $5000, that would be crazy (financial suicide). Trading futures market is a risky investment regardles stop or no stop order.

 

I am in wayne;s trial and I like what I see eventhough there is no stop. I havent seen any loss yet since my trial began last week wednesday. I must say, I am amaze in his system.

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Ha I think I started a thread once about inverse risk/reward or whatever, and mathematically we can't say it's any better or worse than a standard R/R. But you should absolutely be aware that anyone can hit huge numbers of small winners in a row by taking huge risks. Its just eventually the big loss comes in. I'm not saying thats a negative per se because the person could still be well in the green when that big loss comes, but a high win rate is a given and means nothing until you see the PnL after a few inevitable losses.

 

It's kinda like the difference between buying out of the money options and selling them with no edge in either. In buying them, you lose, lose, lose, lose and then hit a big winner ( which may or may not put you in the green). In selling them you win, win, win, win and then take a huge loss (which may or may not put you in the red). Neither is better or worse than the other per se, but you shouldn't take the high win rate as a positive all on its own.

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I took losses when I figured I was wrong based on the assumptions I made when entering the trades.

eg; If I thought something was going to bounce from a low point, and I had a 20 point stop loss, I took a loss when it did not bounce.

If I sold something based on a continuing drive downward, I rolled my stop to the last swing high level, and got stopped out there.

It just depended on the instrument.

I may have to stop myself out of a current short US ten yr bond trade if it keeps going higher.

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No its not Waynes system.

I apologise for being sarcastic previously....

If you follow my posts about a system that picks up pennies, I was making the point about having more losses than winners and still making money.

But if you are new to trading I hope you get the message that following a system that looks for lots and lots of small wins, can be profitable but can also get you into trouble quickly. There are some very good intense traders out there who make money doing these things, but I also think most of the people you will find here would advise against it.

If Waynes system is about this then good luck, but be aware of the pitfalls.

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