ES Journal Archive (2006 - 2008)

[Buy1Sell2]

Quote from blaster1:

You may be right as far as my stops being tight but keep in mind that we operate in different timeframes. My stops are just right for my style of trading.

If you are using a target, then a better bet would be to attempt to get at least 3 to 1 on the wins. That will let you have a lower win percentage and still be profitable. If using a trailing stop for a target, then it doesn't matter as long as you continue trailing regularly for risk management. For example, the short you just put on could be the beginning of a 20, 30 or 40 point move or it could be nothing. We just don't know that right now. So, no matter what time frame you are on, you could still catch a big move. Many traders think that because they are trading a 1, 2 3 minute timeframe, that the stop and profit on each trade will be small or in the case of the profit, limited. Not so!

 

[Buy1Sell2]

Quote from Buy1Sell2:

I am treating it like a daytrade and pulling my stop down to 1395.25 and will trail down further during the day today.

Stop trailed down to 1394.75

 

[Buy1Sell2]

05-12-08 08:03 AM



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Quote from Buy1Sell2:

I am treating it like a daytrade and pulling my stop down to 1395.25 and will trail down further during the day today.
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Stop trailed down to 1394.75


Stop trailed down to 1394.25

 

[volente_00]

Quote from Buy1Sell2:

For example, the short you just put on could be the beginning of a 20, 30 or 40 point move or it could be nothing. We just don't know that right now. So, no matter what time frame you are on, you could still catch a big move.

And for that reason alone is why scaling out is better in an unknown trading environment.



10 trades

2 contracts, 3 point stop , 10 point target

no scale trying to get 10 point on everytrade ~ 30 % win rate

losses = 7 trades x 2 contracts x 3 point stop = - 42 points

wins = 3 trades x 2 contracts x 10 point target = +60 points


net +18 points



scaling out


2 contracts 3 point target on half, stop then to break even, , 3 point initial stop 80% win rate



2 contracts x 3 points x 2 losing trades = - 12 point


2 contracts x {(10 +3) points / 2 } x 2 winning trades = +26 points



other 6 trades

1 contracts x 3 points x 6 winning trades = 18 points
1 contract x 0 points (break even stop hit) 0 points


Net = 32 points



Which would you rather have after 10 trades ?


18 or 32 points ?

 

[volente_00]

Quote from Buy1Sell2:

05-12-08 08:03 AM



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Quote from Buy1Sell2:

I am treating it like a daytrade and pulling my stop down to 1395.25 and will trail down further during the day today.
--------------------------------------------------------------------------------



Stop trailed down to 1394.75


Stop trailed down to 1394.25

Why trail down a stop on a losing trade ?

 

[blaster1]

Short 92.25, stop 93.25. Delayed post due to loss of data feed. Placed order right before it went down.

Edit: stopped @b/e.

 

[Buy1Sell2]

05-12-08 08:17 AM

05-12-08 08:03 AM



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Quote from Buy1Sell2:

I am treating it like a daytrade and pulling my stop down to 1395.25 and will trail down further during the day today.
--------------------------------------------------------------------------------



Stop trailed down to 1394.75


Stop trailed down to 1394.25
Holding stop right here for a bit

 

[mbusch]

Quote from mbusch:

Short ES from 1392, triple divergence on MACD on 1/2/3-minute charts. Stop 1394.25.

Covered 1/2 at 1388.25 for +3.75, moving stop to breakeven on remaining half.

 

[Pekelo]

I thought you got stopped out when we hit 1394.5 around 7:40...

Did you move your stop?

 

[Jayford]

Quote from mbusch:

Covered 1/2 at 1388.25 for +3.75, moving stop to breakeven on remaining half.

what happened to that 94.25 stop? did you cancel it (it woulda been hit several times).