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Thanks for you insight. I like the 2 point stop as well. But what I don't like is the false moves in the direction of my stops that catch them and then continue in the direction I wanted them to in the first place.
Do you put your stops into the market or stop it out manually when it reaches that level?
My TS strategy has a 2 point stop but usually I've run up a bit and could have gotton out with a 1/4 point or more or even breakeven before the rundown to my stop.
What I'm actually looking for is tradestation code to take a minimum profit if I've run up and it starts to run down.
Thank you,
JJ |
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The ES was an analogy I don't trade ES, sorry if I mislead you.
Once I have an entry, I normally don't do anything. Either I win or lose. I have everything pre-programmed on my platform AKA stop-loss/trailng stops and profit target. As I have a trailng stop in place at a resonable distance form the market, I am not worried 'cause it will decrease my exposure systematically.
You must have a pre-concieved calculation on your Risk/Reward before placing a trade. If the range is too wide for your risk tolerance, consider not to enter. Stop loss are comprised on two things
1) Logical placement - Away form any pressure points AKA pivots,Fibs/ S/R etc.
2) Risk Tolrenace - not necesarily a percentage ratio of your bankroll but you much in your head are you willing to risk?.
from that pont, you must let the trailing stop reduce your exposure on the market.
There will be no escape from be stopped out ocasionally, not even with trailing stops. There's no free lunch my friend. You know that. Just consider yourself lucky 'cause your initial risk was reduced, unfortunately the market went the other way.
You need to account for current range on the market you're trading. Maybe 2 point ES has become part of the "noise" and you migth have to lower your gear and shoot for a wider stop-loss.
The overall range on indices has changed since late July I beleive. It's a fairly normall event by this time of the year as the summer is ending, newely refresh traders are coming back to the market and most fund managers are allocating funds into the bond market, hence pushing the market into new ranges and levels.
A fairly easy way to measure range: Just backdate your charts at the begining of august. If you're trading on 5 minutes, move up to a high timeframe like 30 minutes and establish an average high/low and midpoint( some people call the median) I beleive you can do it around the first week of August. Don't have to backdate the whole period just that week. Then move forward to the past week and compare. That way you will have an feel for what's going on and adjust your trades accordingly.
I don't know how many contracts you're trading, just have in mind ES is $12:50 a tick. My humble advice: It's good to lower the amount of contracts(hence lower your leverage) you're trading and shoot for wider ranges/stop-loss so you can be in tune with the market.
Another thing you migth consider: Everybody is screaming (Bull) lately. A weak dollar, Gold/Crude oil are going thru the roof, comodities are soaring, ect. I have a feeling that wider ranges are waiting for us ahead.
Peace