Defensive

Posted on Apr 7 2015 - 9:00am by Sharpe Trade

I don’t play chess with any level of skill.

Yes, I know how the pieces move.   A few basic opens.  That’s about it.  So that being said, I once took some time and had a 1900 rated friend ‘showing me the ropes’ of the game.  He’d walk me through various games. Various ‘opens’. Different ‘end-games’.  Well, in the middle of one of these sessions, I had moved my bishop out into the middle of the board, and was quickly trapped.

I sat there for about 5 minutes trying to figure out how to extricate myself.

When he finally leaned forward and said …

You know Dan, he can move back where he came from too

Duh.

Quite simple.  Just have return the bishop to his original starting point, and the entire ‘trap’ was non-existent.  It struck me how simple the solution was.  I just couldn’t see it.

The markets are not very different.

As I said previously, I think we have a complete meat-grinder on our hands.  Yesterday, my edge favored the downside.  We then rally a bagillion points, and now, my edge is totally and completely mixed.   I have no edge in this market. However, as I said some time ago … we’ve gone completely defensive in this meat-grinder.  Especially since this market has completely chopped me up earlier in the year, and had me hit my draw-down kill-switch (which, by the way, is very, very low compared to other professionals)

I know when it’s time to pull the pieces back.

I’ve simply put on a strategy that will make money in any situation.  The market goes up?  I make money.  The market goes down?  I make money.  It will allow me both to recoup some of the losses I had earlier in the year, and at the same time, wait out this meat-grinder

I’m playing defense.

Leave A Response