Dillon Kennedy

† | Equities Trader | Intraday Focused

[Dillon Kennedy @premohs]

something i’ve been doing is tracking Peak R values, R to final trail (I also trail 50% of my remaining position, so this stat is importnat for me to log), and R giveback from peak R to final trail

on average, i have an R giveback of 1.73R from peak R. Which means I can expect to lose about that much R from my peak unrealized R.

knowing the actual in depth stats like this helps massively with holding through pullbacks, but also helps to optimize your exit strategy in the first place.

[Dillon Kennedy @premohs]

@kenctrades Qullamaggie has a pretty good perspective on this that helped me out a lot personally. Here’s the link to the clip where he talks about it:

https://t.co/le2jsi8rZ8

[Lone @lonextrades]

Qullamaggie on Why You Are Always in a Drawdown

“You're never gonna sell everything at the top. Just get that thought out of your head. You're gonna be in a drawdown probably 99% of the time. Remember that.

You can make 500% in a year and be in a drawdown 95% of the time. That's just how it works. If anyone's gonna tell you otherwise, they're a liar and probably trying to sell you something.

Look at stuff like NFLX over the past 10 years or AMZN. One of the best performing stocks over 10 years. You can see it spent like, what, 2/3 of the time in a drawdown. Now it's in a drawdown again. Where this ends, who knows. That's just how it works.

No matter how good or bad your returns are, you're gonna spend most of the time in a drawdown. No matter what. Only time you're not gonna do that, if you’re a day trader or scalper, one of these guys that make 50 bucks per day and they're super happy about it. They make like 500 trades, end up with 50 bucks.”

[Dillon Kennedy @premohs]

@kenctrades @BrianLeeTrades @gstrades @trade0us It was great to be able to talk to everyone and listen to what they had to say. Still can't believe @gstrades is waking up at 1am for pre market though while on vacation. That's real commitment lol

[Dillon Kennedy @premohs]

i just started with looking at all my trades (just a good sample at least of 50 trades) in my journal. I’ll test certain ideas in there like the exit signals. So i’ll go in and see what the new outcomes would be if I had utilized exit signals. Then I’d see the new outcomes and check if it was better than the original or not. So for the exit signals for example, they wouldn’t come up on every trade, but on the ones they did come up on it was overall a better outcome than not using it. I saw that only 1 or 2 times I would have gotten out early of a winning trade, but the amount of R saved on the losses made up for it way more than those 1 or 2 winners I let go. I also saw the best trades for me go in the direction very cleanly and don’t offer exit signals, and they’ll hold trend extremely well, so helps to see that as well.

hopefully that works as kind of an example for where to start. Just have to get creative with the ideas, and test your trades and see what could the outcomes be if you did something else. then just mock up the new stat line and compare. then also i’d recommend back testing and gathering data in other conditions too with the new implimentations to confirm and get an idea of what the execution is like too.

[Dillon Kennedy @premohs]

@jtrader 1. They don’t implement change based on data received from past behaviors.

2. They quit.

All you have to do to be successful is learn from your mistakes, and don’t give up. That’s literally it. Time will do the rest.

[Dillon Kennedy @premohs]

@jtrader the backyard is sick, looks so peaceful

[Dillon Kennedy @premohs]

I’ve been there. Not with scripting specifically, but with doing too much of something and making your system so strict that it’s near impossible to even trade it, and it just gets messy and over complicated. It makes you feel trapped in a sense and like you have no room to breath.

There’s for sure a balance to be achieved with every system. It just takes a ton of trial and error, and everyone’s balance is different. But it sounds like you’re on the right track.

[Dillon Kennedy @premohs]

Recently discovered the value in using scripts. Very big thing I overlooked for a long time, and i’m assuming a lot of others as well have overlooked.

It can take a 3 to 4 step identification process and turn it into a 1 step process; higher efficiency.

[Brian Lee @BrianLeeTrades]

6. Systematizing trading decisions can give you greater leverage of your mental faculties. By freeing up space that would otherwise be occupied with rapid emotional decisions, you are able to focus on trade management which is far more important.

Think “if/then”

Can you create conditions or triggers to enter and exit trades?

Pro tip: If you can systematize it then you can code it into script (not automation)… say labels or indicators that indicate when to buy or sell. Further you can backtest them on old and new samples, giving you more confidence in your system.

[Dillon Kennedy @premohs]

@MapleStax yes

[Dillon Kennedy @premohs]

@QJ_trades yktv

[WOLF @WOLF_Financial]

You’re taught to:

- Buy a $30,000 car
- Own a $500,000 home
- Take out $30,000 for college
- Spend $35,000 on a wedding

All before you turn 35.

Society isn’t setting you up for success.

They’re setting you up for failure.

[Dillon Kennedy @premohs]

@DouglasHNuts love to see it