Which trading goal is best and why?

Discussion in 'Index Futures' started by K-Rock, Jun 12, 2006.

  1. sulli


    I agree.

    To the original poster:
    I would suggest basing your daily goal on volatility. The goal would be to extract a percentage of what is available on the timeframe in which you trade.

    This method allows you to evaluate the efficiency of your trading. It allows you to strive for a greater percentage so that you are not stuck aiming for example 2 pts a day.
    #21     Jun 16, 2006
  2. Two things..
    • Setting goals makes for miserable trading.
    • How does the market know what your goals are?
    #22     Jun 16, 2006
  3. Urkel


    So goals are terrible for trading, but downside limits are essential....
    #23     Jun 16, 2006
  4. Uncle Points....

    #24     Jun 16, 2006
  5. Now the mechanics of each individual trade and the reasoning behind trade management....is completely different than money management.

    Get the terms straight
    • Trade Management
    • Money Management
    #25     Jun 16, 2006
  6. lwlee


    I have a slightly different approach. I think in term of ticks. Set the barrier of success low enough so that it can be achieved on a daily basis. Even on those days, when you feel like shit, you should be able to hit that goal. For the ER, I set my goal to 10 ticks.

    Everyone should have a goal but they should have the discipline to be patient and forgo a day or two of trading if there are no setups.
    #26     Jun 16, 2006
  7. Sound point, but why talk about "Trade Management" and not "Trading Strategy"?

    Money management is for people WITHOUT a (working) strategy, i.e. for losers.
    #27     Jun 16, 2006
  8. This I agree with.

    I do not find a valid use for popular "money management martingale type" strategies, other than to rank several trade set-ups and allocate funds according to the rank, which these do not teach.

    Optimal F, Kelly Ratio, FRM....etc...do not work. But again, if you have several set-ups within your strategy, one can rank the probabilities and bet more with the higher set-up.

    find an edge first...

    Michael B

    #28     Jun 16, 2006
  9. I think you should change your target to at least 2 points a day or at least 40 points a month. Goals can be restrictive too.
    #29     Jun 16, 2006
  10. I'm an equity trader myself, but I totally agree with spike500 here. My personal goal is 5% return on my account per month, and sometimes I crush that target, sometimes I go negative. As long as the general trend of your equity curve is sloping the right way (up!), you're not a failure and can concentrate on improving.

    I always try to measure myself up against what the markets offer - I can have negative days where I'm still quite happy with my performance, because my methods sometimes produces losses and I did "the right thing". It's not every day that everything moves like it should, and you shouldn't beat yourself up over that.
    #30     Jun 16, 2006