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Well it is not an easy thing to achieve picking only those trades that are real
winners...
Apart from that, I suppose best is to know your broker personally and leave him
some discretion when executing your orders. The one monitoring the trades can
only be you, but the one buying selling the breakout upon your trade signal can
only be him. Indeed he will be better positionned to judge whether this is a
real or false breakout, but that implies also that sometimes the broker may be
wrong. You have to accept that and let him know that is OK to be wrong, as long
as on balance, it works better to leave him some discretion versus not to.
Gwenn
| -----Ursprungliche Nachricht-----
| Von: Chris Jackson [SMTP:chrisj@xxxxxxxxxx]
| Gesendet am: Tuesday, September 21, 1999 10:33 AM
| An: realtraders@xxxxxxxxxxxx
| Betreff: Broker / Experienced Breakout trader feedback request
|
| Broker / Experienced Breakout trader feedback request.
|
| In the book Trade Your Way To Financial Freedom by Van Tharp he says you
|
| should know your system inside out and fully understand your concept.
|
| He uses an example of trading breakouts. He says you should communicate
| what
| you are doing to your pit broker and what you expect from them.
|
| So if you are a trend follower who trades breakouts, you want to trade
| "real" breakouts and he says you should tell your broker that.
|
| He says you can find someone who will act with a bit of discretion on
| your
| order and that if the market is really moving, your order will be
| executed.
| On the other hand if a few traders are just testing new high/low prices
| then you do not want to be executed because there will not be any follow
|
| through.
|
| He says you can get that kind of service but if you do not communicate
| what
| you want then you obviously will not get that kind of service.
|
| The example is given in the context of a trend following approach.
|
| My questions:
|
| Someone other than the trader would have to monitor the market as the
| breakout level was approached , further someone (possibly a different
| person
| ie. a pit broker) would have to make the judgement as to whether or not
| the
| breakout was real.
|
| Is this in fact possible or is it unrealistic ?
|
| Even if it is possible I realize that their judgement as to whether or
| not
| the breakout was real will not be 100% correct but overall there may be
| an
| improvement. Difficult to quantify.
|
| Does anyone know of a futures broker who offers such a service ? Broker
| replies welcome.
|
| If it is achievable, can someone please explain how this could be
| achieved.
|
| Anyone have any comments or additional questions that they think I
| should be
| asking ?
|
| Thanks,
|
| Chris
|
|
|
|
|