NexusFi: Find Your Edge


Home Menu

 





the art of leverage as i see it


Discussion in Trading Journals

Updated
      Top Posters
    1. looks_one creekboy with 44 posts (3 thanks)
    2. looks_two Fat Tails with 3 posts (1 thanks)
    3. looks_3 Big Mike with 1 posts (0 thanks)
    4. looks_4 Quick Summary with 1 posts (0 thanks)
    1. trending_up 8,019 views
    2. thumb_up 4 thanks given
    3. group 3 followers
    1. forum 48 posts
    2. attach_file 0 attachments




 
Search this Thread

the art of leverage as i see it

  #1 (permalink)
 creekboy 
phl pa. usa
 
Experience: Advanced
Platform: tos
Trading: es
Posts: 1,126 since Mar 2012
Thanks Given: 106
Thanks Received: 347

I am taking Big Mikes suggestion of starting a thread -

it will be based on 2 things

1- will monitor a sim leverage trade to the extreme on both gain and loss sides

2- will continue my agreed competition with bh -on his quest for 20k from 1 k

Visit my NexusFi Trade Journal Started this thread Reply With Quote
Thanked by:

Can you help answer these questions
from other members on NexusFi?
My NT8 Volume Profile Split by Asian/Euro/Open
NinjaTrader
ZombieSqueeze
Platforms and Indicators
Better Renko Gaps
The Elite Circle
Build trailing stop for micro index(s)
Psychology and Money Management
Ninja Mobile Trader VPS (ninjamobiletrader.com)
Trading Reviews and Vendors
 
Best Threads (Most Thanked)
in the last 7 days on NexusFi
Get funded firms 2023/2024 - Any recommendations or word …
59 thanks
Funded Trader platforms
37 thanks
NexusFi site changelog and issues/problem reporting
24 thanks
GFIs1 1 DAX trade per day journal
22 thanks
The Program
19 thanks
  #3 (permalink)
 creekboy 
phl pa. usa
 
Experience: Advanced
Platform: tos
Trading: es
Posts: 1,126 since Mar 2012
Thanks Given: 106
Thanks Received: 347






this is for cme -reguarding leverage -test this on a sim that does not shut down over night-
why leverage kills all traders using multiple contracts-time posted 8:43est
using the june contracts -
go short 1 contract at 1356.50-

now allow the trade to run against you on purpose for at least


@ 1364.50 add 8 contract (ave = 1363.61)using 9 contracts

@ 1372.50 add 72 contracts (ave =71.51)using 81 contracts

@ 1380.50 add 648 contracts (ave =79.50)using 729 contracts

@ 1388.50 add 5832 contracts (ave =87.50)using 6561 contracts

so you see why leverage kills imagine 6561 contracts @ 1387.50 -every point is a 328k move

i believe this is the same principal as the grains of rice story from the nile valley

Visit my NexusFi Trade Journal Started this thread Reply With Quote
  #4 (permalink)
 creekboy 
phl pa. usa
 
Experience: Advanced
Platform: tos
Trading: es
Posts: 1,126 since Mar 2012
Thanks Given: 106
Thanks Received: 347

you saw in yesturdays action -
we had our 1 contract short from 1356.50 go against us as planned
we then added 8 at 1364.50 -
we now have 9 contracts short from our 1363.61 ave
we took approx 5 points of heat or 2250 dollars of mental pressure
you saw in yesturdays action a p/b to the 1363 support line ,
which at that time we could have reduced our position by 8 contracts -
leaving 1 contract short from 1364.50 -

i decided not to reduce-so will maintain all 9 from the 1363.61 ave -

at the weeks close we are in the red approx 1350.00 dollars

Visit my NexusFi Trade Journal Started this thread Reply With Quote
  #5 (permalink)
 creekboy 
phl pa. usa
 
Experience: Advanced
Platform: tos
Trading: es
Posts: 1,126 since Mar 2012
Thanks Given: 106
Thanks Received: 347

no change in the leverage trade -

dh challenge added 2 long trades for 6 ticks each off the afternoon channel action -+150

Visit my NexusFi Trade Journal Started this thread Reply With Quote
  #6 (permalink)
 creekboy 
phl pa. usa
 
Experience: Advanced
Platform: tos
Trading: es
Posts: 1,126 since Mar 2012
Thanks Given: 106
Thanks Received: 347

@ 1372.50 add 72 contracts (ave =71.51)using 81 contracts


our over night action -added our next leg in - i am always impressed at how the market came to breakeven on our trade and proceeded up

this is the second time in 2 entries we could have reduced at or near breakeven to restart the system -

time will tell if we get 1 more entry

Visit my NexusFi Trade Journal Started this thread Reply With Quote
  #7 (permalink)
 creekboy 
phl pa. usa
 
Experience: Advanced
Platform: tos
Trading: es
Posts: 1,126 since Mar 2012
Thanks Given: 106
Thanks Received: 347

as we near our next entry

@ 1380.50 add 648 contracts (ave =79.50)using 729 contracts


this entry will be layered in

1381.00==81 contracts

1380.75 == 81 contracts

1380.50== 324 contracts

1380.25== 81 contracts

1380.00==81 contracts

the total add is still 1380.50 initial ave buy in

Visit my NexusFi Trade Journal Started this thread Reply With Quote
  #8 (permalink)
 creekboy 
phl pa. usa
 
Experience: Advanced
Platform: tos
Trading: es
Posts: 1,126 since Mar 2012
Thanks Given: 106
Thanks Received: 347

@ 1388.50 add 5832 contracts (ave =87.50)using 6561 contracts


we are officially all in on this trade @ 1387.50 ave

at the close we were 1,300,000 in the red-

again at the ave in point we could have reduced for a 1 tick profit on the reduction -

if this trade were to come to the 85.50 area over night i would be inclined to reduce at that area and add higher up on the short


2 -
6 tick loses on the dh challenge in the chop zones ---150

Visit my NexusFi Trade Journal Started this thread Reply With Quote
  #9 (permalink)
 creekboy 
phl pa. usa
 
Experience: Advanced
Platform: tos
Trading: es
Posts: 1,126 since Mar 2012
Thanks Given: 106
Thanks Received: 347

we see on the sim trade -

every called out level has now become s/r - how can that be -

the market gave us the chance to reduce and start over 4 times -

but the wanting to be correct is what kills traders accounts

remember every 3 point advance is a million dollar red move -

which greatly reduces our risk reward ratio-

greed and leverage are spelled the same

thus far we have been 2 million in the red

Visit my NexusFi Trade Journal Started this thread Reply With Quote
  #10 (permalink)
 creekboy 
phl pa. usa
 
Experience: Advanced
Platform: tos
Trading: es
Posts: 1,126 since Mar 2012
Thanks Given: 106
Thanks Received: 347


well since march 8th -we have seen our first good glimpse of daylight -

had 3 points today positive in our favor -with the hit of 1384.50 ,i was looking to reduce at 1385.50
but did not -

was up approx 984k

closed down 410k

Visit my NexusFi Trade Journal Started this thread Reply With Quote




Last Updated on August 7, 2012


© 2024 NexusFi™, s.a., All Rights Reserved.
Av Ricardo J. Alfaro, Century Tower, Panama City, Panama, Ph: +507 833-9432 (Panama and Intl), +1 888-312-3001 (USA and Canada)
All information is for educational use only and is not investment advice. There is a substantial risk of loss in trading commodity futures, stocks, options and foreign exchange products. Past performance is not indicative of future results.
About Us - Contact Us - Site Rules, Acceptable Use, and Terms and Conditions - Privacy Policy - Downloads - Top
no new posts