Re: 60min Flow Trades for the Week: Saint's Method
Prabhjeet, Bee
Very nice discussion been carried out by both of you and some very valid points put forward. I completely understand what you have been trying to put forward.....but just want to put up a few points, which though are obvious to you...but a reiteration of these would help the newcomers:
1. There is no right or wrong here....as I had mentioned in the 1st post of this thread. Absolutely fine if the trades differ. But one thing we have to remember....I am presenting the method (and the trades thereof) as per the method designed by Saint Sir. I know most wont agree with this as far as trading Stocks on Aggressive method (I hate this word now....there should be ONLY one method...the 60min Flow method), but lets debate that later.
2. Any deviation from the base method, is only as per individual preference. To me thats OK..I personally cant put my money on something I find difficult to grasp. Just as an example....pl see the post by Smart Trade on the JP Ass trade. Even though we both seem aggressive, even our trades differed there....but more important than that is, we are consistent in what we do.
3. Sometimes it is better to have used the "Pure" and sometimes "Aggressive" methods.....but we dont trade looking at the rear-view mirrors. What matters is what gets you more points....overall.
4. Both have their own advantages and disadvantages.....feeling foolish to even repeat them again. But would just like to highlight ONE major dis-advantage being put forward for the "Aggressive" method. That is..frequent Whipsaws. Will explain just that now:
(a) For most trades (not all though), Stop Losses are different if you are following these methods.
(b) This means Aggressives will have a higher probability of stops being hit that the Pure ones.
(c) What it also means is that FOR THE SAME POINTS EARNED,Aggressives would have made more money than the Pure ones. This is because..due to smaller stops, the Position size of Aggressive is much bigger than that of the Pure follower.
(d) Overall......I am convinced by my backtests that the advantage of making higher amounts greately nullifies the disadvantage of making higher number of losses.
Nothing more coming to my mind now, so will stop here.
Thanks a lot again for the great discussion being carried out here.
Rakesh
Prabhjeet, Bee
Very nice discussion been carried out by both of you and some very valid points put forward. I completely understand what you have been trying to put forward.....but just want to put up a few points, which though are obvious to you...but a reiteration of these would help the newcomers:
1. There is no right or wrong here....as I had mentioned in the 1st post of this thread. Absolutely fine if the trades differ. But one thing we have to remember....I am presenting the method (and the trades thereof) as per the method designed by Saint Sir. I know most wont agree with this as far as trading Stocks on Aggressive method (I hate this word now....there should be ONLY one method...the 60min Flow method), but lets debate that later.
2. Any deviation from the base method, is only as per individual preference. To me thats OK..I personally cant put my money on something I find difficult to grasp. Just as an example....pl see the post by Smart Trade on the JP Ass trade. Even though we both seem aggressive, even our trades differed there....but more important than that is, we are consistent in what we do.
3. Sometimes it is better to have used the "Pure" and sometimes "Aggressive" methods.....but we dont trade looking at the rear-view mirrors. What matters is what gets you more points....overall.
4. Both have their own advantages and disadvantages.....feeling foolish to even repeat them again. But would just like to highlight ONE major dis-advantage being put forward for the "Aggressive" method. That is..frequent Whipsaws. Will explain just that now:
(a) For most trades (not all though), Stop Losses are different if you are following these methods.
(b) This means Aggressives will have a higher probability of stops being hit that the Pure ones.
(c) What it also means is that FOR THE SAME POINTS EARNED,Aggressives would have made more money than the Pure ones. This is because..due to smaller stops, the Position size of Aggressive is much bigger than that of the Pure follower.
(d) Overall......I am convinced by my backtests that the advantage of making higher amounts greately nullifies the disadvantage of making higher number of losses.
Nothing more coming to my mind now, so will stop here.
Thanks a lot again for the great discussion being carried out here.
Rakesh
