Over the past 30 days I’ve been implementing a few different nuances to my trade entry and management style.  I’ve been testing a few strategies with my programmers, and  have been practicing them after-hours with NinjaTrader market replay.  Only recently have I started to trade the adjusted style with some size in the live market…

For the past 3 to 4 years, I’ve primarily been an all-in, all-out trader.  Meaning, I get in to a trade with a single entry, then get out with one or two entries.  This has worked well for me, but only because I’ve developed and maintain a disciplined entry strategy.  Those that are using the MAP Trading Strategy know about our 3 entry patterns.

Having developed into sort of a perfectionist with my trading, sometimes I tend to get frustrated if I don’t pick off an entry or exit right at the best price.  Granted, it hasn’t been that big of an issue, but I’m always looking to improve.

One thing that can help take the edge off of having to execute perfect entries and exits, is being able to “glide” into a trade by placing a series of orders throughout a single trade (flat to flat).  If I know the market has the probability to take a few bars (233 tick bars) to pivot, then I’ll hit the bid/ask anywhere in between 2 and 5 times.  Basically, I’m breaking my usual contract load into 3rd’s or 5th’s.  Don’t get me wrong, I’m not scaling in to every single trade; only the ones where I know I have time and don’t need to be extremely precise on the exact entry price and bar.  If I have price that goes a couple ticks against me, I can add to the order, effectively getting a better price.  But I’ll only do this if my entry pattern is still valid, and the original compelling reasons to take the trade are still there.  Sometimes I’ll add if I get a little pop in my favor that breaks a squeeze, but only if I have room for my maximum stop of 1.25 points to be below/above the latest pivot price.

In addition to the softer entry strategy, I’ve been getting better at taking graceful exits.  If I feel like a trade isn’t going to work out, I’ll just close on market.  More times than not my gut is right, but if not, then I have no problem getting right back in.

The exits historically have been pretty clean and clear for me… with the exception of when I’ll get up 2+ points, not hit a target, then have the market come back and take me out.  Sometimes my psyche can take it, other times it really rocks my world.  So, to combat that instinctual drive to maximize my profits, I’ve let myself take about 10%-20% of my trade off prior to my main target.  For any MAP Mastery students reading this, you might be freaking out and saying something like, “But Chris, our baseline trading plans typically say to hold for the target or let the market hit your stop.”  For beginners, that’s absolutely true.  I think it’s vital to gain confidence in whatever targets you’re using.  Also, you need to develop the skill of being able to hold for your target instead of getting shaken out of every tick.  But once you develop that confidence, I think you really need to sink into your own personality and risk tolerance.

To sum it all up, my technical strategy really hasn’t changed.  My setups are the same, my entry patterns and targets are the same… all that’s been adjusted is a few management nuances that I believe will increase my long-term profitability and take some of the edge off.  Like I’ve said a million times, there’s no single “right” way to do this business… Actually, there is a right way.  That way is your way!

Just another personal trading insight…

Chris Dunn

Filed under: MAP Trading Strategy, Thoughts, Trading by Chris Dunn