Position size, hot keys, number of orders - please advise

[onlyjava 12]

I heard from a trader that 

"My position size is set at $35,000 for my hot keys. So if I want to increase a position size over $35,000, I will hit a hotkey a couple of times  to enter  a trade"

Example scenario: when I could have one order for 3000 shares, I will end up with 3 orders for 1000 shares each.

Advantages:

With a fixed position size and related hotkeys I can master the mechanical aspect of trading. (instead of getting confused with more hotkeys etc)

As I get more confidence I gradually increase my capital and position size without changing the hotkeys I have mastered. Let us say, I start with $20000 and after 6 months I double the capital to $40000. I don't change the hotkeys that I have for $20000, I just hit the appropriate BUY|SELL hotkey twice if I want to take advantage of the extra $20000.

Disadvantages:

More transaction fees?

Timing lag?

 

Please advise me - thanks.

Edited March 21, 2020 by onlyjava

[JasonH 47]

On 3/20/2020 at 7:21 AM, onlyjava said:

I heard from a trader that 

"My position size is set at $35,000 for my hot keys. So if I want to increase a position size over $35,000, I will hit a hotkey a couple of times  to enter  a trade"

Example scenario: when I could have one order for 3000 shares, I will end up with 3 orders for 1000 shares each.

Advantages:

With a fixed position size and related hotkeys you can master the mechanical aspect of trading. (instead of getting confused with more hotkeys etc)

Disadvantages:

More transaction fees?

Depends on the fee structure for your broker, but if your broker does things similar to CMEG, then it doesn't matter. The fees and commissions you pay are driven by the total number of shares, not trades. See my post here.

Timing lag?

Please advise me - thanks.

 

 

[Nperez13 0]

I’m interested to know any further findings, as I find my self I. The same predicament. A hotkey would allow me to simply my entry and focus on trade/pattern. But I’m not too sure how you could dictate your risk per trade if you’re buying the same amount for every trade. 

[onlyjava 12]

1 hour ago, Nperez13 said:

I’m interested to know any further findings, as I find my self I. The same predicament. A hotkey would allow me to simply my entry and focus on trade/pattern. But I’m not too sure how you could dictate your risk per trade if you’re buying the same amount for every trade. 

Hey @Nperez13

 

I have tried various techniques.  My latest approach is using BUYING POWER and buttons like below.

I am liking this so far. I am a momentum trader mostly - so I have to make quick decisions and all the risk/reward calculations etc was too much to handle.

Not many people are going to like my approach 🙂

I guess you have find your own technique.

 

B 200 -> buy 200 shares

B .20 BP -> buy 20% of buying power

S SL 25c - > (set for shorts) stop loss 25c above the price

S SL $150 -> (set for shorts) stop loss to fixed $150 total above the price based on the total price and quantity of of the shares

I guess you will be able to figure out the rest.

 

[JasonH 47]

15 hours ago, Nperez13 said:

I’m interested to know any further findings, as I find my self I. The same predicament. A hotkey would allow me to simply my entry and focus on trade/pattern. But I’m not too sure how you could dictate your risk per trade if you’re buying the same amount for every trade. 

@Nperez13 You can use hotkeys to trade with a fixed risk. i.e. Wherever you double-click on the chart, that becomes your stop loss and can be equivalent to any amount you choose ($50, $200, $500..) The hotkey can calculate how many shares to purchase (and equity to risk) based on that stop loss you define. So if your stop loss is $0.50 away from the current price, and you program the hotkey for a 1% risk (a.k.a $100 on your $10,000 equity account), then it will automatically purchase $100/$0.50=200 shares for you. Unless the stock is too expensive and you cannot afford 200 shares, then the hotkey can simply purchase the maximum number of shares you can afford, in which case your risk is something under 1%. So your risk can be under your max risk, but never over.

[Nperez13 0]

On 11/14/2020 at 11:30 AM, onlyjava said:

Hey @Nperez13

 

I have tried various techniques.  My latest approach is using BUYING POWER and buttons like below.

I am liking this so far. I am a momentum trader mostly - so I have to make quick decisions and all the risk/reward calculations etc was too much to handle.

Not many people are going to like my approach 🙂

I guess you have find your own technique.

 

B 200 -> buy 200 shares

B .20 BP -> buy 20% of buying power

S SL 25c - > (set for shorts) stop loss 25c above the price

S SL $150 -> (set for shorts) stop loss to fixed $150 total above the price based on the total price and quantity of of the shares

I guess you will be able to figure out the rest.

 

Thank you for response @onlyjava  , @JasonH 

I've come to realized some hotkeys are better suited to the time of day, trading style, and trade setup. I've been finding more success implementing $15k buying power hotkeys during the market open for ORB's, and Risk/Share $20-50 for Reversals and ABCs; Since you have more time to determine proper risk, and it will help you protect your realized gains from the morning. 

Also using a Logitech mouse with hotkeys buttons helps, since once you double click you'll be quickly press another button to enter without having to move the mouse over to the montage. 

Blackfriday deal for a 20 button mouse lol 

https://www.bestbuy.com/site/logitech-g600-mmo-wired-optical-gaming-mouse-black/5608091.p?skuId=5608091&ref=212&loc=1&ref=212&loc=1&gclid=CjwKCAiA-_L9BRBQEiwA-bm5fkL6isgYjfVgZfKKHKdv3z5-S3GXAEju1YDjHPB6gpzJ8yoxo1NRtBoC9aMQAvD_BwE&gclsrc=aw.ds

 

[onlyjava 12]

Hey @Nperez13

>>>>> Reversals and ABCs; Since you have more time to determine proper risk, 

You hit the nail right on the head !  Thanks