Am I ready to go live?

@DougStewart
Are you using limit or market orders for your paper trading? At $7.95 average profit per trade, your system is super-sensitive to slippage. Just 1 tick slippage would render the entire system unprofitable. In paper trading, you may get the "fill" of your limit order if price touches the limit. In real trading, you may not get that fill.
 
comagnum said:
What dollar amount do you have slippage programmed for?
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As I have very limited experience, I haven't PLANNED any amount for slippage. On good days I occasionally get way ahead of myself and start wondering how to get fills on large lot orders. I anticipate I won't be able to "scalp" for 1~2 points at over 5 contracts. Perhaps y'all could shed me some light on this point...
 
nonlinear5 said:
@DougStewart
Are you using limit or market orders for your paper trading? At $7.95 average profit per trade, your system is super-sensitive to slippage. Just 1 tick slippage would render the entire system unprofitable. In paper trading, you may get the "fill" of your limit order if price touches the limit. In real trading, you may not get that fill.
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This week I started trading 3 contracts per trade (I think that's called a "three lot", at least that's what we called in the back office of the options brokerage where I worked 2000~2004). I've gotten a few partial fills using limit entry orders, so I've started to experience that (the Trade Station sim seems very real to my inexperienced eyes). I use limit orders more than market orders for entries. I've used market orders especially when I want to exit pronto.
 
Doug, I am moving away from ES,,,but I have alot of experience with it. Yes, you are pulling too many trades IMO. My average on ES is 4.5 per day... Every time I enter a trade there are only three outcomes, win/lose/break-even. My goal is to step into the game and put myself at risk as few times as possible each day and achieve my profit targets. Sure come days are better than others, but for the ES with my criteria there is about 3-5 setups per day. I WAS a big over-trader in years past. I know that I was pushing marginal setups. Now, my setups are more picky to enter.

I hope that makes sense.

I believe the time spent in SIM is really good. Once it becomes robotic, you are ready.

good luck to you...
 
DougStewart said:
This week I started trading 3 contracts per trade (I think that's called a "three lot", at least that's what we called in the back office of the options brokerage where I worked 2000~2004). I've gotten a few partial fills using limit entry orders, so I've started to experience that (the Trade Station sim seems very real to my inexperienced eyes). I use limit orders more than market orders for entries. I've used market orders especially when I want to exit pronto.
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I am way late to read this long thread but just noticed you worked "in the back office options brokerage" and for 4 years. Why, Sir, did you waste all that knowledge and are now relying on a set of indicators that are of questionable value. As you know you can easily trade the ES using options as well as futures. That is by far the better method. No ax to grind here, just know the game of trading the ES very well and understand what it is to even consider the loss ratio you are experiencing in sim. Losing trades are really catastrophic to your psyche and more so to your account. Is it possible to trade without losses? Really? With hedging using options against futures I have not had a losing day in over 7 months. Drop the indicators and save the cost thereof -- not needed when you have positive expectancy with proper money management.

Thanks for this interesting thread and all the great responses -- a true ET example. Best for your continued success.
 
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