Trading Q and A
Q: Is there a way to track other things?... I'm working with 'stops', and I want to track the size stop necessary for each trade so as to not get stopped out.
A: You can certainly track different exit management techniques in the Exit Strategy section of the Tracking sheet. I’ll go into more detail below just in case I didn’t understand your question correctly, and then I’ll comment more just in case there is a hidden question in there somewhere ;-)
If you’re trying to tame the market by avoiding getting stopped-out… that is not something the Tracking sheet can help with, nor should any trader think that they can trade for any length of time without getting stopped-out; it’s part of business to limit your losses by being stopped out at a predetermined amount, to avoid damaging your account.
However, if you can describe different scenarios in the Exit Strategy section of the Tracking sheet, you can certainly track which management technique works best for your trading style.
For example, if you find that placing your stops under the low of the most recent pivot keep stopping you out, then maybe you should go back and review those trades and try to come up with a common denominator. You may find that placing the stop another .05-.10 cents away may do the trick for a majority of the trades, or taking ½ your normal risk and using double the stop amount. Then, adding your other ½ risk after the trade has been confirmed to go in your intended direction.
The only way to know which produces the best results is to track & record the different techniques by simply adding or changing your Codes and Descriptions in the Exit Strategy section. You can even track various Stop-out techniques (if you wish).
i.e.,
1) Stop-out under prior pivot
2) Stop-out at ½ risk and double the Stop
3) Etc.
When you have a similar amount of data in the various sub-categories (#1,2,etc – from above), then you can begin to compare them and assess which is producing the least amount of loss. So again, don’t try too hard to avoid the Stop-out; just keep them all at a loss of 1R, while concentrating on staying in the trade (to your targets) to make multiple “R’s”.
Even if you find yourself stopping out and losing more often then you win, it should only be a deterrent if you are not making more on your winning trades than those on your losing trades, (this is the Payoff Ratio).
I hope that helps. Kind regards,
Greg at TJS
A: You can certainly track different exit management techniques in the Exit Strategy section of the Tracking sheet. I’ll go into more detail below just in case I didn’t understand your question correctly, and then I’ll comment more just in case there is a hidden question in there somewhere ;-)
If you’re trying to tame the market by avoiding getting stopped-out… that is not something the Tracking sheet can help with, nor should any trader think that they can trade for any length of time without getting stopped-out; it’s part of business to limit your losses by being stopped out at a predetermined amount, to avoid damaging your account.
However, if you can describe different scenarios in the Exit Strategy section of the Tracking sheet, you can certainly track which management technique works best for your trading style.
For example, if you find that placing your stops under the low of the most recent pivot keep stopping you out, then maybe you should go back and review those trades and try to come up with a common denominator. You may find that placing the stop another .05-.10 cents away may do the trick for a majority of the trades, or taking ½ your normal risk and using double the stop amount. Then, adding your other ½ risk after the trade has been confirmed to go in your intended direction.
The only way to know which produces the best results is to track & record the different techniques by simply adding or changing your Codes and Descriptions in the Exit Strategy section. You can even track various Stop-out techniques (if you wish).
i.e.,
1) Stop-out under prior pivot
2) Stop-out at ½ risk and double the Stop
3) Etc.
When you have a similar amount of data in the various sub-categories (#1,2,etc – from above), then you can begin to compare them and assess which is producing the least amount of loss. So again, don’t try too hard to avoid the Stop-out; just keep them all at a loss of 1R, while concentrating on staying in the trade (to your targets) to make multiple “R’s”.
Even if you find yourself stopping out and losing more often then you win, it should only be a deterrent if you are not making more on your winning trades than those on your losing trades, (this is the Payoff Ratio).
I hope that helps. Kind regards,
Greg at TJS
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