Small Profits

It has been a challenge both in practice and funded trading to be profitable lately. So, aggressively last night I began doing backtesting again, at a slower speed. Often when I do backtesting, I do it at 8x speed. Yesterday I did it at 1x, 2x, and 4x. 2x is like trading at 1.5 min. 4x is less than a minute, but it can be like 1 min. To go faster, it's not even close to what real trading would be like, so it's less valuable for me at this point.

I've found I have to set my profits typically at 2 ticks. At times, it will have to be 1 tick, other times 3, 4-6 ticks. Rarely will I be able to take a trade of more than 6 ticks as of recent.

Most days in the past 2 weeks have not been trending. Yesterday trading was in a 6 pt range, not much. You have to be able to take profits quickly. It was frustrating trading because I refused to believe we were in a sideways day.

So, instead of being frustrated, go with the flow. Take what the market will give you. If it gives you a trend, then take it. If it's sideways, take short profits and being willing to get in and out of trades more quickly.

From "Trading in the Zone", he talks about always being present, focused, in the NOW. What is the market telling you NOW! If it tells you to get out, get out. Backtesting last Thurs & Fri, I found typically taking 1-6 ticks allowed me to be profitable, while waiting for a bigger movement typically cost me bigger. Not good.

You can't force the market to do anything as the market doesn't care anything about you. Stay focused. Stay present!
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