[Blu-Ray]

Thanks Blowfish

Yes you're right, I feel a bit of an idiot now, as I thought my stop was a stop limit order, not a plain old stop order. My broker says stop limit orders are not allowed on that exchange, but I'm going to find out for sure if this is true.

As for slippage with the Dax, 4 points was my worst but happened several times and it was for this reason I moved over to the stoxx.

You are right, I need to also find out where my orders are held, as the scenario you had would be a nightmare.

Thanks again

Blu-Ray

[Dogpile]

I may just borrow that method after some backtesting.

since you are entering on a little momentum, you want it to move right away... thus if it doesn't, you don't HAVE to wait for the swing low to trigger your stop.

if it does move right away in your favor, you can move your stop up fast. I often move my stop quickly to the opening price of the bar that triggered me in or to the low of the bar that triggered me in -- with logic being that the momentum you joined in on needs to carry or else you will exit for scratch or rounding-error type of loss.

another thing is if you do get the initial push up, you can take a piece off like 1/4 of the position and now keep a slightly wider stop to ride out some noise and the gain on the 1/4 position offsets the small loss on the 3/4 of the position for again, a scratch. you essentially get a free ride -- a free call option with asymmetric payoff relative to risk.

you occassionally get chopped up a little no matter what you do anyway. this type of method works for me because you can still catch a big move -- higher timeframe reward if you are right about the higher timeframe technical pattern with lower timeframe risk if you are wrong.

another option is to take a small initial position on a limit with a wide stop and wait for the parabolic to trigger to complete the position and then take your stop up to something near the swing low.

[MC]

Originally Posted by Dogpile »

since you are entering on a little momentum, you want it to move right away... thus if it doesn't, you don't HAVE to wait for the swing low to trigger your stop.

if it does move right away in your favor, you can move your stop up fast. I often move my stop quickly to the opening price of the bar that triggered me in or to the low of the bar that triggered me in -- with logic being that the momentum you joined in on needs to carry or else you will exit for scratch or rounding-error type of loss.

another thing is if you do get the initial push up, you can take a piece off like 1/4 of the position and now keep a slightly wider stop to ride out some noise and the gain on the 1/4 position offsets the small loss on the 3/4 of the position for again, a scratch. you essentially get a free ride -- a free call option with asymmetric payoff relative to risk.

you occassionally get chopped up a little no matter what you do anyway. this type of method works for me because you can still catch a big move -- higher timeframe reward if you are right about the higher timeframe technical pattern with lower timeframe risk if you are wrong.

another option is to take a small initial position on a limit with a wide stop and wait for the parabolic to trigger to complete the position and then take your stop up to something near the swing low.

Thanks for the added pointers.

I like the momentum style but haven't played that for awhile. I used to play stock breakout plays back in my earlier days and they worked well.

I've been a divergence/counter trend trader lately and want to get back into being able to ride momentum as well. Especially when the market has a heavy trend going on, no point in fighting the wave.

And the timeframe comment is a perfect outlook for this style too.