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Troy Kelley wrote:
> Traders,
>
> I have been paper trading the mini S&P for a few months now. I like
> paper trading the mini because I can I just buy at the ask and sell at
> the bid, and I wait about 5 to 10 seconds for my order to be executed.
> In other words, it is easier to estimate entry and exit points with the
> mini than it is with the big contract.
>
> Enclosed is an excel spreadsheet of my results. As you can see, I was
> off to a great start, but then I started basically going sideways after
> that.
>
> Is this the type of performance I can expect from trading futures? Can
> some of you more seasoned traders tell me if this is a typical equity
> curve for trading?
>
> Thanks
> Troy,
Sorry, but I couldn't read your attached file. If I have to download it from
e-mail, I don't do it. Anyway, the answer probably is that you have developed some
sort of trading system. . Most traders select a trading system which favors a
particular type of market behavior. Very few trading systems are good at handling
multiple market behaviors. Behaviors are for example whether a market is trending,
non trending, in a trading range or consolidation, high volatility or low
volatility, etc. Therefore, whenever a market behavior occurs that a particular
trading systems favors is when that trader will tend to make money. Conversely, those
times during the less favored market behavior will usually result in lesser profits
or possibly losses. The only way to overcome this is to be able to accurately
forecast future market behavior patterns or adapt the proper trading system or
strategy accordingly. Of course, billions of dollars have been spent trying to do
this, but to my knowledge very few if any have succeeded Therefore, you will
probably have to resign yourself to the fact that the markets are not automatic money
machines there to dispense a daily income for all who trade. At best, the experienced
talented intuitive trader will be able to recognize when the market is beginning to
deviate from his or her favored market behavior and reduce their exposure to the
market.
With the above in mind, I highly recommend that you chart your daily equity.
After a while,
you will be amazed to find what you can deduce about your future profit and losses.
In regard to your equity, you will be able to determine support and resistance areas,
Elliott wave patterns, Fibonacci retracements, and sometimes you will be able to
forecast market behavior based on the patterns you see on your own equity chart. It
is an excellent money management tool and sometimes can be used to confirm market
signals. I have read articles by several top traders who are keen on using this tool.
Try it, you'll like it.
Cheers,
/\/
\/\/
>
>
> ------------------------------------------------------------------------
>
> Name: work s&ps.xls
> work s&ps.xls Type: Microsoft Excel Worksheet (application/vnd.ms-excel)
> Encoding: base64
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