Lost My Ass

I traded off of the Adaptive OR this morning as I planned. The first trade was a 1.25 point loss. I took three more, thinking that the next one would be the one. All according to my setup, and all losers. In the end I got chopped for -6.75 ES points. Didn’t have time for any EoTPro trade setups today, but it’s seeming like I don’t have the margin to trade their way anyway. :/

The lesson? Maybe one trade off this Adaptive OR is the maximum–It’s a win or a loss. Maybe I need a chop filter of some kind. Plus, trading in August bites. Same time frame that I blew myself up last year.

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11 Responses to “Lost My Ass”

  1. Jeremiah Says:

    Trading in August does Suck. I know a lot of traders that take the last 2 weeks in August off and work on their plan or go on vacation. The ones that don’t go on vacation trade only trade half to a quarter of their normal size (what I do).

    Also, here are two things that I do that might help. One, take a 3-5min break between trades and the second one is if I get stopped out on a setup 3 times in a day I’m done taking that setup for the day. If it happens 2 days in the same week I’m done taking it for the week.

    I don’t think it’s that my setup doesn’t work, I just think it’s not working in those particular market conditions.

    Hope this helps.

  2. James Phua Says:

    is there any fundamental reasoning behind why trading in august sucks?
    btw prospectus could u elaborate on ur statement “I don’t have the margin to trade their way anyway. :/” ?
    do they trade 3 contracts with different profit targets or something?

  3. Jeremiah Says:

    for me it’s 3 reasons.

    1. Volume tends to try up at the end of summer
    2. I personally know successful traders that say the same thing.
    3. The most important – when I look at my own results July and August have historically been my worst 2 months.

  4. James Phua Says:

    hey jeremiah i was wondering how many ticks is ur stop loss?

  5. Jeremiah Says:

    depends on the setup – somewhere between 2-3 points on the ES

  6. Prospectus Says:

    Jeremiah: Thanks for the ideas. I should have stopped at three today and saved 1.5 points. I’m going to sit August out in future unless I have a good system for chop. I agree–it’s not the setup that is bad, it’s the market conditions that don’t match the setup.

    James:

    Trading in August sucks because the volume is low, chop is high, nothing really follows through, lots of random noise. This summer (until recently) has been very uncharacteristically good for trends, IMO because of the dollar dying and the rally off the March lows.

    As far as EoTPro, they trade 4 contracts per position. They let 3 go after 1 point, and save one to trail a stop in case of a big runner. So I feel I need margin for at least two. Think or Swim doesn’t use daytrading margins. I have to pay full overnight margins. Either I am not compatible with EoT’s style, or I may need to switch brokers.

  7. TradAnsh Says:

    Prospectus – Sorry to hear about your bad day.

    ToS does support Intraday margin (currently 33% of regular margin) but you need to have a minimum balance of 15K. You can confirm this and the latest margin reqs with them.

  8. Prospectus Says:

    TradAnsh, I didn’t know that! I’m a good way off from 15K, but I’ll bear that in mind.

  9. James T. Says:

    i know that to day trade equity u need 25k but how about day trading futures for TOS? i heard it is significantly lower on other brokers but i have no idea about TOS in that regard. i have enough for equity but i wanna separate my accounts for different trading instruments so i can monitor P/L more closely.
    anyone?

  10. TradAnsh Says:

    15K is the limit for day trading futures specifically at ToS. Standard PDT limit of 25K still applies for stocks, options etc as per SEC guidelines.

  11. Jeffrey Lin Says:

    yesterday was just a sick day. finally broke my streak with my system until i just ignored the chop and let things ride. even AH and overnight there were opportunities to get out with a profit on both long and short…

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