Halloween weekend update – work continues…

Over the weekend:

  • Looked at building a model for testing the Udine 00 scalping strategy.  Made some progress but not yet usable – maybe my Excel skills have taken a dive?  This strategy (on the forum of Forex Factory website) caught my attention because it seemed to be built around the premise of 00 numbers.  The trader is actually referring to single zero levels rather than double zero levels for example 1.6040 (rather than 1.6100) but nevertheless – still interesting.
  • Read a good chunk of The Pit Bull book, lent from a friend – thanks James! Written by a very successful trader with decades of experience in stocks, options and futures. Found the quality of the material mixed at this point.  At the end there is a good 20-page summary of recommendations for how to trade.  If pressed for time, I would suggest to read that chapter first.  On page 263, there is a fantastic quote from Thomas A. Edison – “the reason a lot of people do not recognize opportunity is because it usually goes around wearing overalls looking like hard work.”
  • Did a bit of testing on Wallarchi trading strategy.
  • Went to skaters’ Halloween party – awesome! Drank lot of beer – also awesome!

My pipeline of trading strategy ideas is growing and growing.  But you really only need to make 1-2 ideas work and then have some other strategy fairly ready to go, in case existing strategies stop working.  I think this is actually a trait/skill of mine that I tend to overlook – being able to generate, document and prioritise ideas – it’s a numbers game – if you fire off 100 shots, 1 or 2 are bound to hit the target, right?

For now I am putting nearly all of my effort into one single trading strategy (as you will have noticed from reading the blog here).  However I am also trying to get 1-2 others going, in case EMA doesn’t work out, or in case I want to have more than one strategy going at a time.  So, notice that I never stop looking for new ideas and new material – to give me potentially new angles, to continue learning, to continue getting better.  Thus, my work never seems to stop.

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2 Responses to Halloween weekend update – work continues…

  1. James says:

    there were quite a few things to take from the Pitbull book
    – Marty has the personality to be a trader, especially short-term. He has confidence (most of the time), high tolerance of risk, determination and work ethic
    – He had his wife to bounce ideas off, perhaps its a good idea to have a quick-fire discussion before placing a trade? Leveraging working with other traders in your office
    – It took him a year to get his method straight, the guy was aware of broader trends and themes and used those as part of his ability to read the tape (he was big on momentum, fading, taking the alternative trade)
    – When he had a really strong idea he really went all in – bit like having a 8% card edge
    – He also took considerable risk, especially early on, probably risking 3-8% of bankroll, if these hadn’t worked out – there would be no book

    The main reasons i lent you the book was to see the need for a consistant method (but can be a synthesis of other methods), when you have a scenario that you deem as a really strong idea you increase your risk – and also to see that some do become wildly successful in something as crazy as trading

    I do think you are doing the right thing in the number of trades you have per day and your management.

    A couple of suggestions, perhaps having a plan for the day – my idea of a slight bias based on news, trends etc and HTF ideas – to inform your short timeframe work

    and the bouncing ideas off other traders you share an office with. I think if you can integrate those properly it may improve things??? (as opposed to searching for new trading strategies, which i am not sure is the answer????)

    Liked by 1 person

  2. Thanks for all these suggestions James – much appreciated – look fwd to talking them over at our next coffee meet-up! I finished the book now – it was a great read – somewhat depressing at the end when he encountered heart failures and couldn’t stop himself from putting on trades. It’s good to see that he seems to be back on top of the world as recently as 2013 in his Amherst speech.

    Like

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