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Guy,
Sounds like you are getting the money management part down pat <G>.
Also the system buy signal timing is great. I did add to my DELL position
this morning, but I'm still mostly cash. I'll re-evaluate this week end.
JimG
----- Original Message -----
From: Guy Tann <grt@xxxxxxxxxxxx>
To: Metastock <metastock@xxxxxxxxxxxxx>
Sent: Monday, July 26, 1999 9:17 PM
Subject: Now we get the Buy
> JimG and All
>
> Well, we finally got a buy signal for tomorrow, which is in agreement with
> our Intermediate Term Signal (ITS). I can't believe that our sell
actually
> made money after that big move up against us. <G>
>
> Of course, we're getting a little braver and adding to the positions when
> they go against us. Seems to work fairly well. Lately, we've been
starting
> with small positions and adding to them every 10 or 20 S&P points. The
last
> 3 trades have been remarkable, even though they initially had major draw
> downs. This last one was a little scary until the bottom dropped out. We
> even made a margin call, which we never do, and then added to the short
> positions. Brass cajones.
>
> We feel that we have to have confidence in our trading system.
>
> If we had stuck to our older visual stops, we would have taken a loss on
all
> 3 trades instead of making money on all 3. With these major swings, the
old
> stop percentages we developed when the S&Ps were at 600 don't seem to
apply.
> We're now trading without stops and will take our chances with these draw
> downs. By starting with smaller initial positions and scaling our trades,
> we hope we're doing a better job of money management and minimizing our
> risks while maximizing our profitability. Our initial positions are
usually
> 15% of capital and then we scale up from there if it goes against us. We
> have also reserved a majority of our capital back from the account and
hold
> that in Tbonds, thereby eliminating any risk of going broke. While
> substantially reducing our trading positions and holding funds back, we
have
> actually invested up to 60% of our futures trading account. We're still
> feeling our way, but since we have limited our overall risk, reduced our
> initial exposure, we don't feel that we're exposing ourselves to much risk
> at all. Anyway, by applying these techniques, we hope to eliminate any
> possibility of going broke. We'll see how it works. So far, so good.
>
> Regards
>
> Guy
>
>
>
>
> "If all else fails, immortality can always be assured by spectacular
error."
> Observation by economist John Kenneth Galbraith.
>
>
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