I don't know if it's called trading-edge, but 85% winning ratio for the last 30 days trading sure mean something. I don't intend to show-off, just share how I trade lately. Okay, here's my 'edge' :
1. Market Reading : Futures,Index,Bonds,Oil,Gold,Sector,TICK,VIX some of my indicator how market behave especially the first hour. There will be multiple scenario like
a. Mixed indicator with weak future, market tend to chopped
b. Align indicator, market tend to trending.
This is just guidance, and give more confidence if I go with the market.
2. Support Resistance : AMZN had a clear S/R and tend to go to .50 price. This is important cos lot of bottom/peak go to this number.
3. Time Frame : My best time will be first hour of trading. My underlying tend to follow the market and it's quicker profit taking (or losing).
4. Partial profit and scalping : I hate winning trade become losing so partial profit very good for my mental state as I took off the money first. That's the most importance thing about trading. Profiting. Scalp half my position and let my profit run.
5. Averaging mostly down : I know this is very dangerous strategy but very high..VERY HIGH probability especially if you go with the market. I averaging down 3 times on 3 pit stop with different strike price. My first entry will be low delta cause it had lower probability. 2nd entry with higher delta after it went down to next pit stop. 3rd entry will be averaging down my 1st position.
Exit very fast with low margin because it's just Capital Preservation
( Notes : I knew AMZN because it tend to pullback to .50 pricing so that's my profit taking point. And it worked a lot. Just don't greedy, oh and option price mean a lot at this point )
6. Stop Loss : I hate Mediocre Stop Loss. Why? I think this is the new stupid advice of trading. When lot of people using stop loss then you know who took the stop loss and ride your direction. Do I take loss? Of Course!!! but not in the way most people do. I took huge STOP LOSS which only trigger 1 time in 22 day trade. It's contrarian with my posting here. But the things is Smart Stop Loss is the one never got triggered. So, be smart for your stop. I will discuss it later.
7. ATR or Average True Ratio Daily..this is important because you don't want to go long at $2 HI-LO when the ATR is 2.15, especially at early hour.
8. Adjusting position. This consider to be Loss Management also. Adding and Reducing position is important. Option had different strike so adjusting here like lower probability entry will be lower strike, higher probability entry will be higher strike. I LOVE OPTIONS :)
9. LOCKED PROFIT : NO MATTER HOW SMALL,HOW RIDICULOUS, LOCKED PROFIT!!! GOOD FOR YOUR HEALTH.
10. ALMANAC, History repeat itself
11. Anticipating NEWS and EVENT
There's some of my edge, I also had uninterpreted called instinct. I hope my share will be useful for your trade also.
Good Trade
OMG, you're sounding so like C, De'Trader!
ReplyDeleteBy the way, I still can't believe that he declared on his blog that he's got a very huge risk appetite but has extremely small tolerance for loss.
Does that even make sense?
Does he actually trade??
Thanks for stepping by :)
ReplyDeleteWho's C? Got to know him/her
I love averaging down because AMZN tend to more forgiving. Play GS like this and you get slaughtered in a second.
I prefer lot of small winning and very few huge losses rather than moderate big winning but quite lot of small losing trade. It suits my psycholgy thingy.
It's Options btw. You don't have to check your margin every time. Buy what you can afford style.
Later I'll explain my strategy more detail..Good Night