Which software is best for position sizing strategy?

[salvadorveiga]

impressive pip thief... really nice ratios youi got there...

is that a software you designed to look for corrective patterns?

 

[The Pip Thief]

I am a pattern trader as an art form. I feel that this is the only way to trade. Focus on money management and look for low risk / high reward entries. Also this gives you the freedom to pick an chose and not beat yourself up when you miss a trade. I blew out some accounts before I figured this out. It is a money management game not a "Who has the best buy and sell system."

When I used to follow a system I used beat myself up when I missed a trade and screw myself all up psychologically. I had no money management at all. I laugh looking back those painful years.

As for my win rate. It is in the 40's I miss a lot but this PositionSizer has really brought my trading to another level because of the graphical nature. I used to use a position size calculator but this is much better for me personally.

As for the patterns I trade. They are double tops or triple tops. Elliot ABC's and a couple of inside bar set ups as well. With these set ups there are plenty of opps in a day even in I miss a couple.

Hope this helps you out. If you are a system trader what kind of money management do you use. If you do not have any it is never too late to start. It took me 8 years before I became profitable.

One last thing - Beware of buy/sell system providers that do not even touch on money managemnet.

The Pip Thief

 

[The Pip Thief]

Here are some Double and Triple Top set ups that did not work out. I guess I should show some losses since that is what most of my trades end up doing. I am not saying I lose money. There is a big difference between the two.

The Pip Thief

 

[The Pip Thief]

One last note. I love the way the first double top was formed. If you notice the way it formed, in a matter of 3 two minute bars we jumped back up to that top. That is the banks jerking the small traders around and a big hint in my mind. That is why I say this business is really an art form.

Buy and Sell systems can never give you the detective work that a human mind gives you. Just thought I would show you some of my logic. If you cannot control yourself then go with an auto trade system but if you have any kind of self control you will be able to out perform a system that some vendor is selling.

The auto trade systems that work better than humans are rarely sold to the public and I mean a really big RARELY.

The Pip Thief

 

[salvadorveiga]

Here are some Double and Triple Top set ups that did not work out. I guess I should show some losses since that is what most of my trades end up doing. I am not saying I lose money. There is a big difference between the two.

The Pip Thief

I am aware of that. I am a systematic trader and I do use money management. It is based on volatility plus the importance the system gives to each time frame based on the strength/lack of a trend.

I know you trade based in EW forms, I was just wondering if that position sizer was a method of your own or something you programed since it indicates stop placement and popssible targets.

From what I see, it tries to identify ABC ppatterns and once it fails to go above the C top, confirming the continuation of an impulse move, it triggers a trade with a stop placement right above the wave C that cannot be undercut.

Tight stops, and potential big moves. if it happens to grab a 3rd wave impulse ratios can get pretty big like 20-30 or more.

 

[The Pip Thief]

One final note that makes me laugh so hard I fell out of my chair!!!!!!!!!!!!!!

Someone, and I am almost sure that it is a software vendor that does not like what I have to say has rated this thread as ZERO stars to bring the rating down. This thread, for all you beginning traders out there might very well be the most important thread that you will ever read. Not to pat myself on the back, because I am far from perfect and I lost money for years.

Money management is the most important aspect of this business and the person that rated it this thread badly either has an agenda or is very unaware of the true nature of this business.😆:clap:👍:idea:

How you like them apples??????????????

The Pip Thief

 

[The Pip Thief]

Salvadorveiga,

PositionSizer works with a series of price capture clicks. You chose your entry price, stop price, then 0,1,2 profit targets and it gives you your position size based on the % Risk model and your RR ratios at which time you click the TRADE POSITION button. Then your order is sent to the broker and upon order fill the stops and target orders are place automatically as well You need to have reason to buy/sell or some kind of system I should say. PositionSizer is an order entry add-on and not a program that tells you when to buy or sell.

As for the 3rd waves. Sometimes they can be huge. You are right on that. But this is when trading gets the hardest psychologically. This is where I make all my mistakes. Getting out to early and not following the ATR all the way down.

Funny as it may be the PositionSizer now has an Auto ATR so I am able to let it manage my stop automatically.

The Pip Thief

 

[thunderbolt1]

Hi Pip Thief. Do you have a list of books you could recommend?
Many Thanks.

 

[The Pip Thief]

Hello Thunderbolt1,

Money Management - MOST IMPORTANT
All of Dr.Van Tharps material is good. I would start with his books because his course is $995. The most important area to cover is Position Sizing.
Super Trader: Make Consistent Profits in Good and Bad Markets by Van K. Tharp
Trade Your Way to Financial Freedom by Van K. Tharp

Motivational -
Market Wizards 1 and 2 - Jack Schwager
Just a quick note. I went through the two books and every single trader in both books refers to money management as being critical to success and most say it is even more important than the buy/sell system.

Psychology - Both books say the same thing kind of but in different ways and it cannot hurt to read both.
Trading in the Zone: Master the Market with Confidence, Discipline and a Winning Attitude by Mark Douglas
The Disciplined Trader: Developing Winning Attitudes by Mark Douglas

That should get you started. Notice how I did not give you any books on buy/sell systems. That is for a reason. It should be the last thing you read. One last thing. Do yourself a favor and get PositionSizer before you enter another trade or start trading. It is by far the thing that will make you last the longest if you risk 1% while you are new. This will get you through the learning curve of all the mistakes that happen unexpectedly and leave you saying "Where did all of my money go?" You have to ask yourself if you think you are going to lose 100 trades straight at 1% risk which would have to happen to lose all your capital.

Plus you are from Ireland if I am correct. Doing all the currency conversions is a pain and this is done for you before you enter a trade so you are risking a true 1% of your account base currency. Not some guestimation.

I do not know your story but if you new and are still at break even after 6 months consider yourself as doing very well and even in the top 5% of all new traders.

Good reading!!!😎

The Pip Thief

 

[thunderbolt1]

Thanks for the list, I really appreciate it. Im already reading Van tharps Trade your way to Financial Freedom, thats what got me interested in Position Sizing in the first place.

Ive been trading for about 15 months now and while I have had a good enough result for the last 7-8 months , I have woken up to the fact that the more I read and learn the more I realise that I simply dont know enough.

:smart: