RTY Trading Testbed [Record = 14 for 64 | -3.70pts | -$185.00 per contract]

[Bustin Stones]

With the 2 year Treasury rate having peaked in early Nov, going short will probably not be as profitable as going long in the near future.

[lamboguy]

Originally Posted by Bustin Stones

With the 2 year Treasury rate having peaked in early Nov, going short will probably not be as profitable as going long in the near future.

he's not looking for anything long term. when the market falls most of the time you make bigger scores faster going short.

[PaceAdvantage]

might be going long soon..."but the markets are closed today!"

Not the futures markets...they are open until 1pm EST...

[PaceAdvantage]

LONG RTY @ 1894.9
STOP @ 1892.40

[PaceAdvantage]

I remember years ago there was a huge move in the futures markets on MLK day...but it was a down move...maybe we get a huge up move today?

Wishful thinking, yes...

[PaceAdvantage]

Unless I get stopped out in the next hour, I will be holding onto this one through the break from 1pm to 6pm....

[PaceAdvantage]

Originally Posted by PaceAdvantage

LONG RTY @ 1894.9
STOP @ 1892.40

STOPPED OUT @ 1892.30 (1 tick of slippage)

P/L = -2.60pts

Record = 14 for 45 | +114.20pts | +$5,710 per contract

[lamboguy]

Originally Posted by PaceAdvantage

STOPPED OUT @ 1892.30 (1 tick of slippage)

P/L = -2.60pts

Record = 14 for 45 | +114.20pts | +$5,710 per contract

you lasted a long time on that tight a stop. i knew a guy that had a big run using tight stops on stocks. he was basically playing breakouts though, he made a lot of money, but that was in the mid 90's and he was paying $25 commission per trade. today you can trade with a good direct access company for as little as one-tenth of a penny per share without dealing with order flow. when i was active i was using Centerpoint trading. i was also able to borrow all the shares i wanted to short on action stocks. but even with that great platform, i found it very tough to make money. at the end, i was borrowing shares to short before i traded shares to go long. i rather spend my time these days battling the CAW, at least i know what i am up against at all times.

for the most part, i like your way of playing the game with the e mini futures, you certainly have made a few big scores with your method. just stay focused at all times and don't vary 1 centimeter off your plan.

[PaceAdvantage]

Originally Posted by lamboguy

just stay focused at all times and don't vary 1 centimeter off your plan.

That's the goal at this point...I varied more than a few centimeters and missed two huge scores so far...and also endured a 20+pt loss....

Not going to vary again...there's always another trade down the road that meets the actual rules.

[PaceAdvantage]

The biggest key to my success lately is this, and it's the one thing I will share about what I do.

I have eliminated PROFIT TARGETS

I always tried to create trading methods and backtested and optimized them with predetermined profit targets in mind...ALWAYS

Once I decided to experiment and find a way to get rid of hard, predetermined profit targets in my trading, I entered a new realm of profitability.

And it made total sense...trading is hard enough to begin with. First off, you have to pick the correct STOP LOSS...the point where you've lost enough in a trade where you say "ok, this isn't working, I need to get out."

If I was also using a profit target, that means I have to be correct TWICE...I have to be the super-genius who not only picks the correct point to bail when I'm losing, but also the correct point to bail when I'm winning.

I'm not that smart.

So I found other ways to exit a profitable trade that didn't limit me to some predetermined profit target that made little sense to begin with.

Sure, there are others on this world who can look at a chart and see "this is the perfect point to exit with a profit..."

I'm not that guy.

So when I rid myself of profit targets, my trading became way more profitable.

It's the only way I've found that enables me to employ the old trading adage that goes something like this:

"Cut your losses, but let your profits run."

I couldn't let my profits run when using a predetermined profit target.

Now I just get out when the chart tells me to get out with a profit. Maybe that is also a profit target, but it wasn't the way I used to use them.

I have another method that gets me out at the end of the day, no matter how much profit I have in the trade. This isn't a profit target, but more of a time target I suppose...

[PaceAdvantage]

Tomorrow morning might be a good time to short? That's what I'm thinking right now...

[PaceAdvantage]

SHORT RTY @ 1899.30
STOP @ 1907.30

[PaceAdvantage]

Originally Posted by PaceAdvantage

SHORT RTY @ 1899.30
STOP @ 1907.30

Well that was rough, hard, and completely without lube...not happy days recently at casa RTY for me...

STOPPED OUT @ 1907.30

P/L = -8.00pts

Record = 14 for 46 | +106.20pts | +$5,310 per contract

[PaceAdvantage]

Since I feel so very violated at the moment, and the market looks like it might be weakening again...I get the feeling I'm going to get royally fucked and the market is going to tank now that it's stopped me out....

I hope not...but sometimes it must do this to try and fuck with a trader's psychology...because that's what the market is designed to do...

My job is to not let it...which I won't...venting here is probably good therapy for that.

[PaceAdvantage]

RTY hitting new highs on the day now...I feel better...