Sun May 13 16:15:13 CEST 2018
THIS IS NOT TRADING ADVICE. IT IS A 'LIVE' DEMONSTRATION OF HOW INTELLIGENT / PROFITABLE TRADING CAN UNFOLD.
The rules I use for applying those 'triggers'...
I trade using 'financial spread betting'; a rule I agree with is that the size of loss I anticipate, ie the size of my guaranteed stop loss, the distance, should represent 1% to 5% of my overall treasury and no higher, at all at all at all.
I buy with a guaranteed stop loss of 40 points below the buy price (or 80 points if it's a bigger item and says 'at half strength') and a limit of 20 points above the buy price (in both cases I just round the buy price down after the decimal point to .0) or 40 points above it for trades marked 'at half strength'.
For 'at half strength' trades I trade, therefore, half as many pounds per point as the other ones.
I pool risk and speed up the process by opening as many as possible, but the sum total of the guaranteed stop distance of all open trades ought really to stay under 30% of my treasury, and without a doubt I do not ever let it go above 50%.
In the event that my entire pool suddenly or slowly grinds to stops and I lose them all, I cease trading for 12 months and treat the loss as a signal of either a crash or a very bad downturn to avoid.
The companies I trade on are ftse companies whose prices are in the range between 100 and 400 points and if they are between 400 and 800 points I trade them as 'half strength' trades
author: Claro K Si
(if you test these rules out on the markets you will see that they work fairly well outside of volatile conditions and long downturns)
Warning: this is not trading advice; the predictions given are the opinions of the author; the risky burden of attempting to copy those trades but failing due to erroneous behaviour is entirely on your shoulders; be aware that if you trade on financial markets, for example using financial spread betting tools, prices go both ways, losses can be heavy, particularly if you do not pay attention to what you're doing and fail to completely understand the platform and its characteristics properly; seek professional advice if you are a beginner looking to learn how to use such tools; also be aware that a very high percentage of users of such sites are alleged to lose in the longterm; also note that this distribution of success reflects to some extent the broader reality of the financial markets, particularly across a 'long' period of time such as one or two decades.