Published in June 18th, 2010
BarroMetrics Views: Stops and their Use III - Hedging
Today I’ll conclude this series.
Let me first say that this is my view and I don’t expect to change anyone’s mind. Let me also say that I believe ‘hedging’ to be one of the worst practices novices can adopt.
Let’s be clear about what I mean by ‘hedging’: […]
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Published in June 17th, 2010
BarroMetrics Views: Stops and their Use II
With the interest in the “Stops and their Use”, I thought I’d cover the topic a little more fully.
I believe hard stops (i.e. stops that are in the market) placed are necessary to guard against catastrophic loss. I place my stops at a point beyond which I am not […]
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Published in June 15th, 2010
BarroMetrics Views: Stops and their Use
The other day, I came across a blog that found that on a R:R of 1:1, a drop at or below 65% and the equity curve became unstable. He also found by adding stops the win rate would cause the win rate to drop and he also found that his […]
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Published in April 20th, 2010
BarroMetrics Views: Change in Methodology (II)
Our trading methodology needs to fit our personality. That being the case, my search for a new approach meant that I would need need to look for an answer among indicators and moving averages. My personality looks for ‘price structure alone’ rather than ‘price structure as moderated by some indicator’.
I […]
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Published in April 19th, 2010
BarroMetrics Views: Change in Methodology
Two readers have raised important questions about the change in methodology and timeframe.
The questions will take up a couple of blogs.
I’ll take Joe’s question because that will also answer Peter’s. Joe asks: “I assume that you are now trading with much shorter time frames with more frequent entries and exit( hence […]
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Published in April 9th, 2010
BarroMetrics Views: The Education of a Trader (3)
So far I have been considering the ‘how’; I am answering the question, ‘how I acquire the knowledge I need’? In this blog, I want to turn to the ‘what’?.
Most of us have heard and read that success depends on acquiring the know-how to construct a set of […]
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Published in April 5th, 2010
BarroMetrics Views: How Do I Set Stop Levels? (3)
This blog looks at the way I manage a trade. As you may expect, my approach is based on firstly protecting my capital base and only then looking at protecting profits. To do this, I use the Rule of 3 and the Expectancy Return Formula.
The Rule of […]
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Published in April 1st, 2010
BarroMetrics Views: How Do I Set Stop Levels? (2)
Ranadagger asked: “could u please also guide as to when do u put ur stop to breakeven and how do u start trailing the same. how much of paper profits do u protect, when do u decide to take partial profits and when do […]
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Published in March 8th, 2010
BarroMetrics Views: Risk Management
What is risk management? For me it’s a set of tools that balance maximization of profitability with minimization of risk of ruin. It’s made up of two categories:
Trade Management: the strategics and tactics to manage an initial exit (when we first place a trade) and the strategics and tactics to manage our […]
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Published in January 19th, 2010
BarroMetrics Views: Subjective Risk Management
In preparing for my talk on Risk Management sponsored by CMC Markets (see attachment: Art of Trading.pdf), it struck how important a role the subjective aspects are for Risk Management.
Our Vision and Goals set the scene for the driver of our Trading Rules (of which Trade Management forms a part; Trade […]
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