Comments on: Is This a Good Day Trading System? http://theessentialsoftrading.com/Blog/index.php/2008/05/07/is-this-a-good-day-trading-system/ Information and resources for those looking to learn about trading and the markets Wed, 23 May 2012 13:10:54 +0000 hourly 1 http://wordpress.org/?v=3.2.1 By: Hazizi http://theessentialsoftrading.com/Blog/index.php/2008/05/07/is-this-a-good-day-trading-system/#comment-12228 Hazizi Thu, 08 May 2008 01:39:06 +0000 http://www.theessentialsoftrading.com/Blog/?p=483#comment-12228 Thanks John for your reply, and Lou for your input. the 0.16 is Nett profit. In a day the system can give more than 20 signals, but I usually trade between 930EST to 1300EST on the ES. It sounds great on most days that I can finish trading the first few minutes-30 minutes using this system as I can stop at 4 ticks profit (2ticks x 2 trades only). I pay USD 5 per round turn. So, my nett profit is USD 20 per contract. The issue of losing streaks in the first 2-3 trades for a particular day did occur, I will trade until I am profitable and then stop. So far I manage to do that in the last 60 days. On few days I need to be glued to the screen for 5 hours straight. But most days I'm done in 30 minutes. When I'm losing, the strategy changes a bit, I won't be looking to make 2 ticks in each trade. I will ride the trend tring to get as much ticks as possible to recover. This seems a little riskier, but I am already down so much for the day, taking 2 ticks will take me ages to recover. My worry about this system is that I might one day will not recover (out of exhaustion since 5 hours watching the screen continuously can take a toll on my concentration and execution). I might take a losing days. When or how much losses I can take before I stop? Thats the penultimate question. Thanks John for your reply, and Lou for your input.
the 0.16 is Nett profit. In a day the system can give more than 20 signals, but I usually trade between 930EST to 1300EST on the ES.
It sounds great on most days that I can finish trading the first few minutes-30 minutes using this system as I can stop at 4 ticks profit (2ticks x 2 trades only). I pay USD 5 per round turn. So, my nett profit is USD 20 per contract.

The issue of losing streaks in the first 2-3 trades for a particular day did occur, I will trade until I am profitable and then stop. So far I manage to do that in the last 60 days. On few days I need to be glued to the screen for 5 hours straight. But most days I’m done in 30 minutes.

When I’m losing, the strategy changes a bit, I won’t be looking to make 2 ticks in each trade. I will ride the trend tring to get as much ticks as possible to recover. This seems a little riskier, but I am already down so much for the day, taking 2 ticks will take me ages to recover.

My worry about this system is that I might one day will not recover (out of exhaustion since 5 hours watching the screen continuously can take a toll on my concentration and execution). I might take a losing days. When or how much losses I can take before I stop? Thats the penultimate question.

]]> By: Lou Vozza http://theessentialsoftrading.com/Blog/index.php/2008/05/07/is-this-a-good-day-trading-system/#comment-12222 Lou Vozza Wed, 07 May 2008 14:42:30 +0000 http://www.theessentialsoftrading.com/Blog/?p=483#comment-12222 Hi John, To the trader who asked you if this system is a good day trading system. The developer of the system tells you to quit if you make 4 ticks in a day. what does he advise on the loss side? What if, just thru randomness, your first two trades are losses. You're down 16 ticks. Are you supposed to quit for the day? Or are you supposed to keep trading until you make the 4 ticks. This can happen in your system because its incorrect 1.5 times out of 10. Seems like risk/reward isn't that great. Just my opinion, but I think you could find a system that does a lot bettter than a 0,16 return. Hi John,

To the trader who asked you if this system is a good day trading system.

The developer of the system tells you to quit if you make 4 ticks in a day. what does he advise on the loss side? What if, just thru randomness, your first two trades are losses. You’re down 16 ticks. Are you supposed to quit for the day?
Or are you supposed to keep trading until you make the 4 ticks.

This can happen in your system because its incorrect 1.5 times out of 10.

Seems like risk/reward isn’t that great. Just my opinion, but I think you could find a system that does a lot bettter than a 0,16 return.

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