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Great news Josh - you haven't jinxed me today(just teasing you as I'm not a superstitious person)....I did one silly trade that I shouldn't have taken and monkey'd with a trade that would have worked if I just didn't touch it.....damn trading can be hard at times.
Ignoring the breakeven trade +50 tics (4/5) ....
60tics (3/3) some great set-ups BUT missing the signal bar....as Mack said recently on his Saturday YT vid:
1) Wait for prices to come to Key Entry Points (aka Supp/Resist, EMA)
2) then take the trades with proper signal bars....
Seems easy, but as we all know it's not that easy otherwise we would all be driving Ferrari's
A few great trades were missed simply because the market is moving so quickly.....and I'm loath to use market orders.(or just not quick enough)
Personally I think the PATS system is really about being able to read the chart for support/resistance levels....the HSI(all markets really) bounces off them regularly which means you can trade them to your advantage.
Sadly, when I started out I deliberately went the mechanical algo path and although I was aware of their importance I ignored them completely...in hindsight that was an obvious mistake.
@Godzilla really enjoy your journal. I've started SIM trading and taken only a few live trades on the MHI (mini for the HSI).
I'm curious what type of stop loss strategy you use with this instrument. The daily ranges are very large but I don't want to risk too much per trade. At the same time giving this room to breathe seems necessary.. so striking that balance has been a challenge.
I "only" use PATS entries for 99% of my trades unless I've screwed-up and pulled the trigger early or sometimes in frustration late....as Mack says you "cannot be early or late" you place your trade 1tic above the signal …
Firstly, good news your on SIM - don't be silly and trade live until you have a proven method(edge). proof = $10k profits on SIM.
Second, using the PATS method the stoploss is always the length of the signal bar + 2 ticks...1tick above for sig bar high for entry and 1 below the sig bar low for exits (opposite for sells).....so in theory the stoploss is adaptive to each entry you take....you have to monitor it and move your stop quickly as required.....so for large range sig bars (which I dont recommend) you need a larger stop and need to move it back and for smaller sig bars you move your stop closer and have a smaller loss in the event of a loss.
When I traded MHI I used 10ticks as a preset stoploss and moved it as required. Once I could trade the MHI consistently profitable I graduated to HSI! HSI is a beast be careful if you trade it. Without an edge it will drain your account very quickly.
Now regarding your risk avoidance...you have to ignore the dollar amount and place the orders correctly - remember your on SIM so train yourself to place the trade (move stop if required) then relax, breath normally and dont let any tension build up as this needs to be avoided as it's a stress you don't need(you have to kill your emotions - trade like a robot).....otherwise you will "monkey" with your trade and get a loss that could have been a profit if you just followed the rules....yes I have done this many times and been burned as well like everyone else.
SIM is perfect for those 2 things....perfecting your chart reading/entry technique and to practice controlling your emotions when a trade position is on.
I no longer use a breakeven trigger on my orders , ie market moves to 10tick profit then SC automatically moves the stop loss to entry level and many times it will hit the break even stoploss then trade higher and then hit the target profit if I had bigger balls(patience) and just held tight.
If you use "runners" then by all means use that break even strategy but then the correct trigger to move your stoploss to breakeven is at 11tics not 10tics.(in my case for HSI = 1 tick greater then your 1st target) personally I don't use runners....but if I get up to 3+ contracts I might consider it.
In the beginning I would trade SIM live then trade the session on SIM replay that night (learning from my mistakes).....you can learn twice as fast
Anyway enough rambling from me....just remember it takes time to master yourself. If you want to dig deeper look at the works of Dr Van Tharp...books/home study only.
Thank you so much for this. I enjoy the rambling !!!
Yes, I'm mainly sticking to SIM because this instrument intimates me. I've taken 2 trades live total and am 2 for 2 both winners. Overall, I feel I'm getting the feel for how this one flows but the speed and volatility are something I'm not used to which is why I'm trying to figure out the correct stop/targets to set.
I have not studied the PATS method at all. I've seen it discussed here around on the forums before. Judging by your consistency I think it might be something I should invest some time in and attempt to apply it to the HSI/MHI. TY!
Bit of struggle today (7/9) + 53tics....first losing trade was dumb - poor signal bar.
I keep wavering between a 20tic target for contract 2 or as I normally do just 10tic target for the whole order...everytime I try it is doesn't workout.... Patience is a virtue.
I know Mack doesn't teach this per se, but sometimes I wonder whether in a strongly trending market (i.e. EMA in a steep angle), it makes more sense to hang onto both contracts for longer (with SL at BE). If you can get in on a 2nd entry after a retrace, there's often a very good chance of making more than your usual fixed target, especially if it's the start of a measured move. Food for thought, anyway.
Thu - -80tics (0/2) - turned it off....if I get 2 in a row wrong I know something is NOT right so it's best to walk away from the screen.....try and minimise losses when things are not going well. No patience yesterday...sux!
Assembled a trampoline in the back yard for the kids instead that kept me busy and replaced the headset bearings on my road bike..sweet!
Fri - Mojo is back but not 100% (6/9) + 46tics.....I know I'm leaving $$$ on the table but the curry lunch is calling.
A great week overall but lets forget about Thursday..
)
...in hindsight that was an obvious mistake.
Patience is a virtue.
