10,000 TRADES
Posted: Thu Mar 24, 2016 4:30 pm
http://www.moneyandmarkets.com/10000-tr ... 04?t=ezine
Do you agree with the author's closing statement?
Do you agree with the author's closing statement?
TheRumpledOne wrote:http://www.moneyandmarkets.com/10000-trade-rule-76804?t=ezine
Do you agree with the author's closing statement?
I do not agree that one should focus on entries as it is the least important part of trading; more so if your position is sized to withstand short-term volatility.
If you are going to focus on something then focus on not losing money and on maximizing your potential reward.
Are entries important? Of course they are, they are a whopping 10% of your success.
Other things about the author:
1) he has a $min size and he stops at two doubles.
Conservative, but how can I disagree with a man who is after my own heart
2) he returns with double after his stop is hit.
This is a move that is common in Craps, but first I feel that I have to explain how craps and daytrading are similar.
a) The house advantage acts as trading costs.
If the cost is small, if the wager is near even (48.6/51.4), then there is room to profit. We don't look at the house edge of a single bet but to the "house edge per bets resolved". Craps is a unique game, there is nothing like it in the entire casino.
b) There are statistics that you can count on.
The average number of rolls per shooter is 8.5 and 70%+ of the time a shooter will reach 3.8 rolls of the dice. The key is to only make bets that can be turned off or taken down (not counting hedge bets, which are also very important).
c) the patterns act as market conditions.
There are different strategies for different market conditions. It is the same in Craps, you "bet what you see".
...now about the doubling...
It is important to remember that whatever you are risking is what you are risking. Your only concern is maximizing the probability of ending the session with a profit. You are not doubling to chase your losses you are doubling because your buyin allows it and because it is more likely that you will recoup in two rolls than in four. If the day ends in a loss then it ends in a loss.
d) +10 or 21% and you had better leave the table.
See pips, take pips.
3) he narrowed his stop to 25 pips.
A few years ago I had said that if you lose much more than 20 pips then good luck ending the day in profit (without increasing your size to reduce the size of the loss).
Anyways, I agree with much of what he says.