Author Topic: WHEN NOT TO TAKE A TRADE?  (Read 3731 times)

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Offline Simon C

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WHEN NOT TO TAKE A TRADE?
« on: 09/10/2012, 04:57:56 PM »
I am writing my trading plan and I have a question that interest me what other people have in their trading plan. Q. SPA 3 triggers a buy price but the market moves quickly. what percentage in movement do you allow the price to move to still be good trade or a no trade :ehh:? I relies answers are just personal preferences but still good to help build my own plan. 

Offline David Sayer

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Re: WHEN NOT TO TAKE A TRADE?
« Reply #1 on: 24/10/2012, 05:17:01 PM »
Hi Simon,
This question is a popular one but has been given many names, so finding previous forum posts was a bit harder than I expected. Please have a read of these threads and see if it answers your question.

http://www.sharewealthsystems.com/forum/index.php/topic,2272.0.html
http://www.sharewealthsystems.com/forum/index.php/topic,406.0.html
http://www.sharewealthsystems.com/forum/index.php/topic,1485.0.html
http://www.sharewealthsystems.com/forum/index.php/topic,2142.msg10389.html#msg10389

Regards,
David

Offline Simon C

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Re: WHEN NOT TO TAKE A TRADE?
« Reply #2 on: 25/10/2012, 12:40:51 PM »
Thank you David

Iv read the post and they have given me a some insight on this subject. I have not created a rule as yet but this is still a variable I need too work on and incorporate into  into my trading plan . With the new money management rules executing smaller trade sizes and minimum brokerage staying the same I think the market movement % plays a bigger role than before the new rules. Thank you for your hard work and follow up, it is greatly appreciated.  :thumb:

Offline Gary Stone

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Re: WHEN NOT TO TAKE A TRADE?
« Reply #3 on: 25/10/2012, 09:52:20 PM »
Simon,

Quote
With the new money management rules executing smaller trade sizes and minimum brokerage staying the same I think the market movement % plays a bigger role than before the new rules.

Have a serious think about this. Risk is now normalised to a far greater degree and percentage moves are percentage moves so teh market probably plays a smaller role provided you are not at extreme brokerage levels.

Also, the simulation is the simulation. The market movements will be factored in to the outcomes. SOme trades would have been done with 5% or even 10% moves on the day of entry I'm not saying that this is what you should put into your Trading Plan just that such trades are in the simulated equity curves as they were not filtered out.

Regards
Gary
On the journey