alsi

[nala]

Hi all . I curious to know how many contracts do do trade at a time or what is the max that you trade? What sytem do you use?

[#2]

use at least 5% of your Capital. Don't expose too much of your money to risk of volitality

[#3]

use at least 5% of your Capital. Don't expose too much of your money to risk of volitality

[Rams]

minimum 2, max 5

[nala]

Can i use 1 contract to build up eventually to 2 then to 5? Is it possible to use simons engulf candles system to achieve this goal.?

[Mar-11]

i believe the number will be determined by your capital.

[SimonPB]

nope, quantity traded is about risk, not capital .. 2% rule ..
http://www.justonelap.com/webinarDetail.asp?intWebinarID=27

[Rams]

Nala, one contract is ok if you in a losing streak but if you in a winning streak, then you will be tempted to increase the number of contracts...but yes you can trade Simons system with one contract.

[SimonPB]

just try engulfing with ALMI .. costs/spreads will mean profit almost impossible ..

[suki]

Candle of death

[#11]

you cannot day trade with ALMI's

[SimonPB]

yip, I typo'd, left out the don't .. you can trade gaps with ALMI ..

[#13]

I beg to differ Simon, it is just plain daft to trade gaps with ALMI's. You can't trust the stops, the spread is too wide, and the costs are 10 times the cost relative to the ALSI. If you are averaging 100pts for gap closes, your transaction costs alone are 20% of the total.

[SimonPB]

stops always have to be manual on ALMI .. spread costs adds about 50 points to a trade .. so on 100 piint gap, it soso .. but on a 300 point gap ??

[SimonPB]

stops always have to be manual on ALMI .. spread costs adds about 50 points to a trade .. so on 100 piint gap, it soso .. but on a 300 point gap ??

[#16]

You are advocating using an instruments that will cost you 50pts in spread - plus excess slippage (because of manual stop) + the equivalent of 26pts in transaction fees? That is 70-100 pts a trade? Or 1/3rd of your 300pt gap? An ALSI will cost you 15pts on the spread, virtually nothing on the slippage and 3pts on the transaction fee. 18-20pts vs 80? You can't seriously be advocating ALMI for day trades?

[3JN2]

ALMI great for learning. Did 20 "paper trades" now doing 20 ALMI trades. Make or lose R100 or so a trade. Proving systems with 20 ALMI trades, then on to one ALSI for 20 trades, then two ALSI.

[3JN2]

ALMI great for learning. Did 20 "paper trades" now doing 20 ALMI trades. Make or lose R100 or so a trade. Proving systems with 20 ALMI trades, then on to one ALSI for 20 trades, then two ALSI.

[#19]

and you won't learn anything IMO. Your entire strategy and approach will be different on an instrument as heavily geared as an ALSI. You don't learn to drag race in a tractor, just like you don't learn to plough a field with a stock car. They are different instruments built for different purposes.

[3JN2]

Fair comment. I watch ALSI but trade ALMI purely to limit risk. Points made or lost more important than actual profit. My point is that trading ALMI is a more accurate reflection of reality than ALSI "paper trades"