- Scale-in: I scale into my trades. I put on as many as 4 trades with the following geometric sizing...1, 1, 2, 4 units. One unit equals 40% of my trading account. For example, if I have a $10,000 trading account 1 unit equals $4000 trade size. I'm seriously thinking of reducing my unit size in half. I will probably finish this month out and then decide if I reduce my units. I mostly add units when the trade goes against me. Yes, I know it defies all logical thought.
- No stops: Yes, it is true. Reckless, I don't think so. The reason it is not reckless is because I'm trading very small units, even when you add all units. Secondly, I do exit trades when it goes significantly against me, but not by placing a hard stop. I'm thinking of modifying this logic slightly by only placing a stop on my last and largest trade. Or when I'm loaded up with all lots then I might put in a stop on all units, I'm just not sure yet. I need more data to figure out what is best.
- Trade with the trend: This means put on the daily candlestick bars and trade in that direction. I'm thinking of adding in the weakly chart for decision making.
- Trade against the 5 minute trend, preferably at the top of the 5 minute bars
- Profit taking: I have not figured out what is best. Sometimes I have taken quick profits and other times I have tried to let them run. Not sure what is best at this point.
- Naked charts: I'm not trading with anything on my charts. I make my decisions based on pure price action.
- Focus Trading: I'm am only trading the EUR/USD.
The one big issue with this strategy is the occasional big hit. Anytime you trade without stops and double down on your losses a time will come when you get nailed. I have a couple good sized loses so far and it seems to be performing well. So, I'm trying to work through some of the deficiencies of this strategy. Only time will tell how it all goes.
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