NCA 2: THE CHARTBOOK

[IgazI]

Gold.png (102.48 KiB) Viewed 1364 times

[IgazI]

When scaling into a trade you do not want to be more than 50% invested early on:
1 + 1 + 2 = 1R
1 + 2 + 3 = 1R
2 + 3 + 5 = 1R

Take entry:
1 - when you're 52% sure about a move.
2 - when price makes a move.
3 - when the midpoint between your 2nd and 3rd entry feels like a safe location for a stop loss.

If you are not more than 50% invested then it doesn't really matter what price does because you will not be facing the possibility of a large loss.

[Wizzlebizzle]

When I started collecting my own data and making my own observations a couple of years ago I discovered something interesting. I was tempted to put it on another form, just to get some confirmation on wether I was right or maybe made an error somewhere. I ended up not sharing it, because I thought if it were true it was too valuable to share on that particular forum.

I was playing around with the usual "beginner" tactics of "moving stop to break even after X amount in profit" and "taking half the position off at 1:1" and my conclusion was that they were both worse than just letting a position run. Then I delved deeper into why this is, from a mathematical standpoint. I remember pretty much proving (with some very simple formulas, I'm no math hero at all) that it makes mathematical sense to add to you positions.

Nothing new on this forum I know. But still great to find out on your own with own found evidence. I'll see later if I can find my findings in my notebook.

[Jhx]

When I started collecting my own data and making my own observations a couple of years ago I discovered something interesting. I was tempted to put it on another form, just to get some confirmation on wether I was right or maybe made an error somewhere. I ended up not sharing it, because I thought if it were true it was too valuable to share on that particular forum.

I was playing around with the usual "beginner" tactics of "moving stop to break even after X amount in profit" and "taking half the position off at 1:1" and my conclusion was that they were both worse than just letting a position run. Then I delved deeper into why this is, from a mathematical standpoint. I remember pretty much proving (with some very simple formulas, I'm no math hero at all) that it makes mathematical sense to add to you positions.

Nothing new on this forum I know. But still great to find out on your own with own found evidence. I'll see later if I can find my findings in my notebook.

That's interesting. If you happen to find your notes please go a bit more into that

[IgazI]

When I started collecting my own data and making my own observations a couple of years ago I discovered something interesting. I was tempted to put it on another form, just to get some confirmation on wether I was right or maybe made an error somewhere. I ended up not sharing it, because I thought if it were true it was too valuable to share on that particular forum.

I was playing around with the usual "beginner" tactics of "moving stop to break even after X amount in profit" and "taking half the position off at 1:1" and my conclusion was that they were both worse than just letting a position run. Then I delved deeper into why this is, from a mathematical standpoint. I remember pretty much proving (with some very simple formulas, I'm no math hero at all) that it makes mathematical sense to add to you positions.

Nothing new on this forum I know. But still great to find out on your own with own found evidence. I'll see later if I can find my findings in my notebook.

It's no mystery: time = range, size = money, time in the market with size = range & money.

I scale into trades because I realize that

ruth_langmore.png (142.72 KiB) Viewed 1240 times

All that I know is that I want more when I am winning and less when I am losing.

[Jhx]

But when talking about scaling in like this, we're only talking about putting all the initial R at play, right?
It's not the same as adding in the sense of stacking, or is it?

[Wizzlebizzle]

When I started collecting my own data and making my own observations a couple of years ago I discovered something interesting. I was tempted to put it on another form, just to get some confirmation on wether I was right or maybe made an error somewhere. I ended up not sharing it, because I thought if it were true it was too valuable to share on that particular forum.

I was playing around with the usual "beginner" tactics of "moving stop to break even after X amount in profit" and "taking half the position off at 1:1" and my conclusion was that they were both worse than just letting a position run. Then I delved deeper into why this is, from a mathematical standpoint. I remember pretty much proving (with some very simple formulas, I'm no math hero at all) that it makes mathematical sense to add to you positions.

Nothing new on this forum I know. But still great to find out on your own with own found evidence. I'll see later if I can find my findings in my notebook.

That's interesting. If you happen to find your notes please go a bit more into that

I can't seem to find it. I'll be able to regurgitate the gist of it when I have some time at hand.

This is another reason I would like one of them E-ink note taking devices

[IgazI]

But when talking about scaling in like this, we're only talking about putting all the initial R at play, right?
It's not the same as adding in the sense of stacking, or is it?

'Stacking' focuses on maximizing profit whereas 'scaling in' is more about minimizing risk.

[IgazI]

I can't seem to find it. I'll be able to regurgitate the gist of it when I have some time at hand.

This is another reason I would like one of them E-ink note taking devices

You should try Obsidian w/ the basics of how to use it and possibly take a course if you have money to burn. . .

or you could look for YT videos.

[Wizzlebizzle]

I can't seem to find it. I'll be able to regurgitate the gist of it when I have some time at hand.

This is another reason I would like one of them E-ink note taking devices

You should try Obsidian w/ the basics of how to use it and possibly take a course if you have money to burn. . .

or you could look for YT videos.

Thanks. That looks handy indeed. I prefer to be able to work away from a PC, I lose my edge when I am behind my PC, especially in terms of flow.

I'm thinking along the lines of this https://remarkable.com. or https://supernote.com