tag:blogger.com,1999:blog-27784316.post1204300868698753776..comments2023-09-06T03:23:43.027-07:00Comments on I AM A FUTURES TRADER: Chris Johnstonhttp://www.blogger.com/profile/01542415946929766288noreply@blogger.comBlogger6125tag:blogger.com,1999:blog-27784316.post-56325572074866362782012-09-21T06:18:08.289-07:002012-09-21T06:18:08.289-07:00Bobby that is such a long answer it is beyond what...Bobby that is such a long answer it is beyond what I can do here. You are going to have to sign up for my newsletter to get those answers. I will cover those in great detail. It is only $125 a year so it is not real expensive. I think water boarding might be better than reading all my posts going back in time!<br /><br />The net of it is that there are different types of edges for trading depending on the time frames. Although I think we need to make things as simple as we can, to answer your question is complex.<br /><br />Generally, if you want high win % you are going to have to trade off average win to average loss. If you want high ratio of average win to average loss, you will have to trade off winning percentage.<br /><br />There is no right or wrong way to trade, it is a matter of preference and just understanding what you get with each approach.Chris Johnstonhttps://www.blogger.com/profile/01542415946929766288noreply@blogger.comtag:blogger.com,1999:blog-27784316.post-67651378716142570812012-09-20T12:24:00.625-07:002012-09-20T12:24:00.625-07:00Hi, Chris. I see your logic as:-
Expectation = (%w...Hi, Chris. I see your logic as:-<br />Expectation = (%win* average profits)-(%lose*average losses)<br />It is either high %win or high average profits that determine one has positive expectation.<br /><br />I am interested in your approach on both methods you have just described. If you don't mind, please share more, probably on the time frame you use, etc...<br /><br />I always held high respect for full time traders because trading is probably one of the toughest job out there. Therefore, I am planning to read your entire blog from the very first posting to know more about you and your approach. <br /><br />Thanks and cheers.<br /><br />Bobby from Malaysia.Anonymousnoreply@blogger.comtag:blogger.com,1999:blog-27784316.post-81286294476555835462012-09-20T12:07:34.764-07:002012-09-20T12:07:34.764-07:00no I am not in that feeder cattle trade anymoreno I am not in that feeder cattle trade anymoreChris Johnstonhttps://www.blogger.com/profile/01542415946929766288noreply@blogger.comtag:blogger.com,1999:blog-27784316.post-84525982420925735322012-09-20T09:42:11.643-07:002012-09-20T09:42:11.643-07:00are you still long feeder cattle from a while back...are you still long feeder cattle from a while back?Anonymousnoreply@blogger.comtag:blogger.com,1999:blog-27784316.post-33318653196147098832012-09-20T06:17:11.138-07:002012-09-20T06:17:11.138-07:00Bobby, this is a very good point. I would agree in...Bobby, this is a very good point. I would agree in general with what you have stated. However, I have different strategies that have different exit parameters. Some methods I use like the Bond System win more than 80% of the time. These methods often have the average loss a little more than the average win, but they profit by having mostly winning trades. Both of the trades you reference were from that method. Had they been what I am calling a swing trade in my trading service that I am launching, I would have held them. The Soybean trade short I pointed out was a Swing trade, which is why the stop was kept where it was.<br /><br />I am pretty organized about how I approach this business, and I am willing to live with what my methods bring me. In both Gold and BO, I just followed my rules without any opinion or subjectivity. In the case of Gold and also RB which I was long at the same time, had I held them a little longer I would have made more. I don't try to be perfect, I try to follow my rules. I will be covering this in great detail over time in my newsletter.<br /><br />Since the BO long was not a swing trade it had a quick exit parameter.<br /><br />Hope that makes senseChris Johnstonhttps://www.blogger.com/profile/01542415946929766288noreply@blogger.comtag:blogger.com,1999:blog-27784316.post-10925029295776218842012-09-19T23:59:15.197-07:002012-09-19T23:59:15.197-07:00Hi, Chris. I read about your Soybean Oil trade (ZL...Hi, Chris. I read about your Soybean Oil trade (ZLZ2). I did a similar trade which was LONG 55.73. I entered using stop limit order and my initial stop loss was at below 54.72. I am not sure about your stoploss. However, I risk over 1.01 and I think it is "irrational" to take 0.50 profits by risking $1.01. I just doesn't make sense if we think in the long term. Till now, still maintain my stop at 54.72.<br /><br />I think this applies to to your gold trade weeks ago. you exited the trade with a huge profit by the end of Friday closing. However, Gold went higher in the next few sessions. In fact it was still relatively higher than the price you exited. My argument is easy, keep the one that show you profits and cut those that show losses, as fast as possible. <br /><br />What is your take?<br /><br />Regards,<br />Bobby from Malaysia.Anonymousnoreply@blogger.com