|
PureBytes Links
Trading Reference Links
|
If you are trading three contracts, with the first two earlier exit to enhance
profits, your entry must be very accurate, otherwise you would simply lose 3
times as much on any losing trade, which could, in a 40% accuracy system, have
disastrous drawdowns.
John F. Berentson wrote:
> I trade breakouts of congestion areas in which the breakout can be expected
> to cross a support/resistance zone, either real or artificial. The
> risk/reward of the trade, based primarily on the distance between
> support/resistance zones, must meet my discretionary criteria, generally at
> least 3 or 4 to 1. I use a couple of indicators as negative filters. IOW,
> 100% discretionary and not all that complicated.
>
> I generally use tight stops, which is one reason to employ my stop strategy.
>
> JFB
> Shaven Heads Trading NYC
>
> -----Original Message-----
> From: Sigstroker@xxxxxxx [mailto:Sigstroker@xxxxxxx]
> Sent: Sunday, September 27, 1998 9:49 PM
> To: omega-list@xxxxxxxxxx
> Subject: Re: System Exits
>
> Out of curiosity, which formations do you usually base your entries on?
>
> In a message dated 98-09-27 09:50:02 EDT, jfb.nyc@xxxxxxxxxxxxxxxx writes:
>
> > I trade the S&P's using a variation of Joe Ross's technique. It requires
> > trading at least 3 contracts. The first contract is exited during the
> > initial positive move and "pays the overhead and cost of the trade." The
> > second contract is exited at the first congestion area or beginning of a
> > retracement. The third contract is left to ride with a wide stop after
> > moving the stop to break-even.
> >
> > While it probably has a lot to do with my trading style, I make most of
> my
> > money from the first two contracts.
> >
|