jrtrading wrote:Hi MightyOne,
Does your willingness to take a loss (space implosion) change as you accumulate MACROs?
Do I understand the above correctly in saying that you are more careful with losing space in the beginning,
since your money is a larger part of space, than after some accumulation when space consists of much OPM?
In your experience, with experience, is it common to reach targets (21.2%) without implosions on the way?
Comparing the MACRO approach to doubling, it seems as if MACROs are not as aggressive by default.
I hope this makes sense, if not I apologize.
You don't really have to think about all of that when you are using macros.
Your goal is to make so many lines and the first step towards that goal is not losing lines.
The second step is narrowing the lines so that they are made more quickly.
If you have just spent half of the day trading and are sitting with 2% then don't get aggressive, but if the market hands you a bag of gold and you still have the whole day ahead of you then pocket 1% and see if you can make it an even better day.
You might have been trading for 16's and, having narrowed to 12's for the second trade, the market suddenly shoots upwards and gives you 9 lines. On your 15 minute chart there might then be a trade, that looks obvious, that you decide to trade for 4's; after a few lines you widen to 6's (partial profits) and then next trade you widen to 8's
As a rule of thumb, you slash your position size in half when you see a tall candle or price breaking above a cone.
Aim for 4% per day, be happy with 2, and don't cry about 1.
.92%/day is +0/year.
Always remember that if it is not a breakout then it is a cone: