Aggressive break even move or let the price fluctuate ?

Laissez Faire said:
The problem with breakeven is that it's usually a random price point for most trades and/or the stop is moved to breakeven too soon. There's something to be said about not letting a winner turn into a loser, though.

If I scalp for 6 ticks on ES - I'll auto-BE @ + 5 ticks. The ES generally moves in segments of far more than 6 ticks all day long, so there's no way I'll let a + 5 tick trade turn into a loser just to get that final tick. I may override my ATM here and lock in 1 tick if I perceive momentum to be waning. If stopped out - I'll just take another signal later.

If I scalp for 12 ticks on ES - I'll lock in 1 tick @ + 8 ticks.

This is automated in two different strategies and I don't really need to do anything after my entry order is submitted. If I think 6 ticks are on the table - I'll employ that ATM. If I think 12 ticks are on the table - I'll employ that ATM.

If there's a larger move in play I'll try to capture a good part of that, too, usually trailing a stop behind price wherever I perceive it to be safe to do so.

The one rule or principle I try to adhere to is to never let a winner turn into a loss. When you're trying to capture a larger swing that's not always easy to decide as a trade may wobble a bit initially and in no way be a winner just because it moved a bit in your favour. If you move your stop to breakeven at that point you're usually stopped out prematurely and price may go to your target without you.

No easy answers in this game, but some things become clearer with more experience.
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Grab them profits.
 
Leob said:
Never measure, but I think to the break even approach at at least some trailing is better...

Any one??
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Hello Leob,

Yes it is challenging to measure manually if breakeven will help your trading style or not. Better if you can program it, but that may be challenging as well.

If you are aiming for big profits, I think trailing is better. If scalping, just trade it and take a guess.

When in doubt, take good guess.

I really like the mindset of @volpri as he says just take the profits quickly. So I do not need to breakeven cause I try to take the profits fast.
 
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Breakeven is a concern since it is generally a random price point for most transactions, and/or the stop is pushed to breakeven too soon. However, there's something to be said for not allowing a winner to become a loser.

I'll auto-BE @ + 5 ticks if I scalp for 6 ticks on ES. The ES fluctuates in far larger portions than 6 ticks during the day, therefore I'm not going to let a + 5 tick trade develop into a loser simply to obtain that final tick. If I sense that momentum is decreasing, I may override my ATM and lock in 1 tick. If I'm stopped out, I'll merely wait for another signal.
 
Leob said:
Do you have strict rules or depends on volatility?
Maybe based on other factot?

In the long run anyone try to comper this 2 approach?

Never measure, but I think to the break even approach at at least some trailing is better...

Any one??
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Man, it's the same approach as getting your ass out when your stop is hit. You can move the stop higher as prices go up, but the bottom line is you need to absolutely play by the rules you've set up for yourself.
 
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