Posted by traderdavek on 9th of Aug 2011 at 10:00 am
What has worked for me is to hedge a position (long SPY with 3x
inverse SPXU) when I see the trade going against me. I'll
remove the hedge if and when the trade comes back.
Unfortunately, I did not do this soon enough in the current
min-crash.
Doing something similar with the same instrument but day trading
on 5 minute charts which is the only way one could get positioned
once the freefall started. It is the only thing that has allowed me
to hold on to my position and compensate somewhat for the drawdown.
This has been a real learning experience on getting a grip on
emotions. It has been stressful, I've had to trade furiously around
the position. You have to be pretty disciplined with taking profits
on a hedge as you don't want the trade to go against you and turn
into more losses, but then you have to hedge again as major support
areas get taken out. The only complaint I have is that I am
supposed to be on a holiday!
Vida, yes I've been doing the same -- hedge trading around the
position and it's been intense although worth doing. It's weird
having the long position just sitting there staring at me with it's
red numbers and I "can't" do anything with it but I have to keep
trailing out on the shorts to not give back too much since I don't
know when we're going to bottom, then I have to get the shorts on
again if we head down again -- nothing like the noose to focus the
mind! BTW thx to tumbler for helping me think about options -- I'm
doing the Multi and went with calls instead of cash after the first
signal -- has helped some in terms of $$$ loss numbers.
Your comment "nothing like the noose to focus the mind" is spot
on! I've also had to trade much larger positions than I normally
do. I've actually done well but of course still red due to the spy
system position. But in a way, thanks to the system I've been much
more decisive and nimble.
All my other long positions were stopped out in a timely manner
and normally I'd be watching things with popcorn. I am also doing
the multi and we may still get out of this OK, but it's been a real
lesson on mental fortitude. When the system gives an exit it will
be a relief. I am afraid of a small bounce and then further fall to
new lows before a larger rally...
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A thought on SPY Swing System Stops
Historical Draw Downs to the system
Posted by traderdavek on 9th of Aug 2011 at 10:00 am
What has worked for me is to hedge a position (long SPY with 3x inverse SPXU) when I see the trade going against me. I'll remove the hedge if and when the trade comes back. Unfortunately, I did not do this soon enough in the current min-crash.
Doing something similar with the
Posted by Vida on 9th of Aug 2011 at 12:25 pm
Doing something similar with the same instrument but day trading on 5 minute charts which is the only way one could get positioned once the freefall started. It is the only thing that has allowed me to hold on to my position and compensate somewhat for the drawdown. This has been a real learning experience on getting a grip on emotions. It has been stressful, I've had to trade furiously around the position. You have to be pretty disciplined with taking profits on a hedge as you don't want the trade to go against you and turn into more losses, but then you have to hedge again as major support areas get taken out. The only complaint I have is that I am supposed to be on a holiday!
Vida, yes I've been doing
Posted by bkout3 on 9th of Aug 2011 at 12:39 pm
Vida, yes I've been doing the same -- hedge trading around the position and it's been intense although worth doing. It's weird having the long position just sitting there staring at me with it's red numbers and I "can't" do anything with it but I have to keep trailing out on the shorts to not give back too much since I don't know when we're going to bottom, then I have to get the shorts on again if we head down again -- nothing like the noose to focus the mind! BTW thx to tumbler for helping me think about options -- I'm doing the Multi and went with calls instead of cash after the first signal -- has helped some in terms of $$$ loss numbers.
Your comment "nothing like the
Posted by Vida on 9th of Aug 2011 at 01:07 pm
Your comment "nothing like the noose to focus the mind" is spot on! I've also had to trade much larger positions than I normally do. I've actually done well but of course still red due to the spy system position. But in a way, thanks to the system I've been much more decisive and nimble.
All my other long positions were stopped out in a timely manner and normally I'd be watching things with popcorn. I am also doing the multi and we may still get out of this OK, but it's been a real lesson on mental fortitude. When the system gives an exit it will be a relief. I am afraid of a small bounce and then further fall to new lows before a larger rally...