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MARTIN MARTIN Bernardo <bernardo.martin-martin@xxxxxxxxxxxxxx> responds:
>I would appreciate if you or any other menber of the list could
>expand more or give me references on the following;
>
>1. Scaling in/out as a way of protection (not exposing to much at the
>begining of a trade) and maximizing your profits (let profits run)
My approach is pretty informal: Start with one contract, then when
you have enough profit in that contract that a reasonable stop
on two contracts still leaves you with a satisfactory profit, consider
adding that second contract. On the exit side, keep a trailing stop
somewhere safely back from where you think the market shouldn't go,
but OCO that with a profit target where you think the market might,
in your wildest dreams, get to.
Joe diNapoli, Mr. Fibonacci, has some interesting techniques for
being a bit more quantitative about profit targets. You might
track him down somehow and see what you can find. He's spoken at
TAG a few times, so that'd be a good starting point. Maybe someone
else can amplify on this point...
>2. You mentioned some notes of Chuck's TAG lecture some years ago.
>How could I get them? Please give any other reference to book,
>author,etc you consider valid
The TAG talk I heard was in 1993, but Chuck has spoken at TAG several
other times, too, on various subjects. Contact Tim Slater of TAG
at 504-592-4550 for tapes lecture notes from old conferences.
>3. I guess that what you mention as volatility trailing stops is based in a
>certain X ATR of the last Y days? (I myself find it very useful, as the
>"turtle" way of determining how many contracts to trade related to
>percentage of equity risk and volatility (ATR).
I see in looking up that TAG phone number, that Chuck spoke on "New
Techniques Using Average True Range" at this year's TAG conference.
I should order that tape myself...
Gee, this is sounding like a ringing endorsement for Chuck LeBeau,
and I guess it is. :) You can learn a lot of good stuff from his work.
Cheers,
Jim
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