90% Profitable Setup

Status
Not open for further replies.
Aaaah Spectra, lets add to my example


Same rules, flip a coin, 3 cent target, hold forever, but lets now add a stop.

How about a stop 50% below your entry price?

How about 25%?

How about 10%?

How about 1%?


What you will discover is, that as you make your stop tighter, you win% goes down to ensure your expectancy stays negative :D Everything stays perfectly in balance.


Lesson: Stops are not a means of creating positive expectancy and can even lower expectancy for systems that already have a positive expectancy.

Setting proper stops is itself a very important and non-trivial skill.

Damn im good :D Hahahaha
 
Setting proper stops is itself a very important and non-trivial skill.
More...

I agree so don't have much to post. I see newbies setting stops way to close that get hit by wiggle. It is difficult to find that perfect stop. Alex and I always try to pick logical places based on the charts. It's hard to do that with an automated system. He'll play the MaxSpap setup and adjust his stops to what he feels is proper.


CajunSniper / Puretick.com Administrator-Trader
 
Quote from Spectra:

eSginal and TradeStation. Just got done with this setup today. Made 34 points on the YM.

CajunSniper / Puretick.com Administrator-Trader
More...


Thought I remember seeing that the stop for this setup is 40 pts. Is that correct?
 
Correct. It gets lowered once the first target is hit. 40 is actually looking pretty low as of late. The volatility on the YM has really picked up since the big move.

CajunSniper / Puretick.com Administrator-Trader
 
Quote from Spectra:

Correct. It gets lowered once the first target is hit. 40 is actually looking pretty low as of late. The volatility on the YM has really picked up since the big move.

CajunSniper / Puretick.com Administrator-Trader
More...

So you are thinking of increasing it? I could not even imagine taking a 40pt stop, nevermind a bigger one. But I guess this is what makes a market. good luck
 
No probably not. Only if this keeps up for another 2 months or so.

I took a 36 point stop today (almost as bad) on a trade I did myself. Alex was a against it but I have my moments as well. Gave back a few of my earlier gains from system calls.

40 Points in the YM is only $200 per contract. It's not like losing $40.00 per share on 1000 shares of APPLE.

CajunSniper / Puretick.com Administrator-Trader
 
Quote from Spectra:



40 Points in the YM is only $200 per contract. It's not like losing $40.00 per share on 1000 shares of APPLE.

More...

But your comparing apples to oranges...:p
 
How do you like them apples. hehe Ok yes just was making sure people know the ratio here. A 40pt stop on the ES would be huge!

Cajun
 
It's a bit too vast for me. I've seen you guys make some good money on this setup. I just don't have the account size to risk 40pts. good luck monday.
 
If I get into a trade and it should act a certain way when the market is trading normally than a fixed stop is not needed as the market will tell you it is not a "good" trade and try to scratch it.

I understand the the stop needed in BOT or some emergency/event stop..... but fixed stops in scalping and gray box trading is nothing but not understanding the price action that you are trading.

Let the market action be your stop not some 40 point fixed number. Just my opinion.
 
Status
Not open for further replies.
Back
Top