And why not add to each and every trade as it goes against the position? I made this method to have 45-55% of trades to become plus one tick on original entry, each added price level shortens risk one tick and can extend profit by one tick. Gives me very nice days when the ES is choppy all day long and should it trend, I can collect on parts of them as well. I do well by scalping as I do, I don't require the market to go far to be profitable and be consistent at it. It actually saves risk and can double profit if price reverses fast enough, as opposed to putting on all contracts at original entry where reward to risk is less than one to one. When I first came up with idea, I back tested past ten years, forwarded tested and been trading is past four years and does much of what I have expected and happy with losing percentages extremely low. This method is not about making the most profits, it is geared to lowest losing percentages which allows more confidence to trade heavier so profits are not lost.
ES Journal - 2015
- Thread starter Buy1Sell2
- Start date
Unorthodox but interesting, best wishes with your health issues.
Am sure many had trouble today with narrow range and another reason I don't like breakout trades, ES is very much an incredible market to trade, but it is NOT a feel good market like Crude Oil when many times those are momentum plays during day session and why I prefer to trade mostly pre-market as I am better at chop than trend. When you force yourself to wait in ES, you can gain 2-4 ticks thereby reducing risk and giving yourself a chance at two point profit plus. This is a game of risk and not profit. I often hear or read why ES is way it is, ES is a hedge of a index of stocks. This about it, individual stocks then S&P500 is index of stocks for better risk than buying few different stocks, then ES is a hedge for all of this. Index goes up, brokerages also buys ES, when they feel highs are in they get out and go short to hedge the stocks, like waves of the ocean, so the ES is herky jerky cause of all that goes on based on stock market. It not like trading Coffee which hedges just coffee, but too often traders see Commodity markets like they are stocks, and only time you can do this is when your account has the entire cost of one contract of instrument, then there is no margin.
Once you can open one's eyes to understanding ways to cut risk in ES, then you can profit easier.
Once you can open one's eyes to understanding ways to cut risk in ES, then you can profit easier.
