One of the main issues for discretionary traders is the SPEEED.
I don't know about you but I can't trade off the usual range bar charts in this environment. Also, my algos have been getting more slippage and with the increase in the number of bars printed in a day with those range bars, the slippage is taking a lot of profit away.
One compromise is to go back to those "old fashion" time based bars. They're not so old fashioned now. But I make the timeframe very short, say even 30 seconds.
Another thing I do is backtest for what is the largest target I get with winning trades about 90% of the time. I make that T1 and exit half my position. I've mentioned in a previous post that I have cut my size. I then have T2 and T3 each of which scales out 25% of the original position. T3 can be far out if you add a trailing stop that kicks in after T1 has been filled.
Finally, with algos, I have several that trade the same symbol with non correlated strategies.
Trade safe, Trade Smart and Trade often to let the math of your edge to work.
jenrique42
ReplyDeletebut the safest and most intelligent for discretionary traders
"It is doing nothing and just watching how the market evolves"