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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Published in August 21st, 2009
BarroMetrics Views: Area of Competence
The other day I was on Bloomberg’s ‘Asia Confidential with Bernie Low’. As is the normal pattern with this type of shows, viewers are invited to ask questions of the guest commentator. Here you take pot luck with the questions: the viewers will tend to ask questions from their own mindset […]
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Published in June 16th, 2009
BarroMetrics Views: It’s Your Money, Husband It!
This blog focuses on highlighting the risks traders face when choosing brokers.
A little context: I view brokers as being in a fiduciary relationship and as owing a fiduciary duty to their clients. Ray, what in heavens name do you mean? It sounds like legal-eagle double talk!
Think of it in […]
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Published in March 4th, 2009
If there is a key concept that leads to trading success, it’s the understanding, integration and application of the Expectancy Return:
(Average Dollar Win x Win Rate) - (Average Dollar LosS x Loss rate)
Where:
A$Win = the average of the dollars won in our winning trades
Win Rate = the total number of winning trades/sum total of all […]
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