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At 03:40 PM 2/15/98 -0800, Chris Jackson wrote:
>snipped
>>
>> I would like a system that can also catch those large moves in addition
>> to taking the small chunks. Maybe there is a different way to make a
>> hybrid of a volatility breakout and a trend following system?
>
>This is where trading mutiple contracts really helps. Trade Mid Am
>contracts if need be.
>
>The traders that I personally who I know make money all use this
>approach. Psychologically it is much easier.
>
>For example you could exit the first position at a profit target of some
>kind.
>Then you will still be in the trade on those occasions when the market
>starts to trend.
>
>Ray Barros has explained the rule of 3 ie. breaking your position down
>into multiples of 3 contracts.
>
> Another
>> idea is to incorporate pivots so that the system takes volatility
>> breakouts that exit with say the first profitable exit, unless they take
>> out a pivot, in which case you hold for a longer period of time?
>>
>> Paul Cote
>
>
Chris,
This reminds me of the money-management advice I got from
Troutman, defender of sticks. He reasoned that an account
minimum of $5,000 is required (and that is too low, really)
for other reasons than drawdowns. You should break up the
trade even if you are just in one position. And a case
could be made for multiple positions (different due dates
and/or different commodities or instruments).
Thanks,
Pete
petena9090@xxxxxxxxxxxxxx
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