ES Journal Archive (2006 - 2008)

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Quote from Lawrence Chan:

I think we are talking about several different kinds of stops here.

disaster stops -

An absolute stop out point that you are not willing to lose even 1 cent more than that on a per trade basis.

It is recommended by most system traders that this stop be put in as soon as a position is put on because of possible sudden events.

actual stops -

The price point you think your original conjecture in entering a position is no longer valid.

It may or may not be a price level - it can be the price action, the time delay, etc. that changes the scenario completely.

e.g. a divergence short in 5-min failed to materialize in 30 mins

For discretionary traders who trade divergence, the 2 kinds of stops can be very different.

For trend following setups the 2 kinds of stops can be the same, though not necessary.
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TY! Exactisimo
 
Quote from Mins:

So do you have discretionary control over you strats?? Do you choice when to turn them on?
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At all times.
I have the utmost respect for ES and treat it as I would treat any extremely dangerous animal.

regards
f9
 
To further explain that,

1. my disaster stops are at least 10 pts away from the entry price.

2. my real stops are much less than that

3. it takes a lot of discipline and experience to pull the trigger on #2.

So if I fail to do #3, #1 save my a** :)
 
Quote from Lawrence Chan:

To further explain that,

1. my disaster stops are at least 10 pts away from the entry price.

2. my real stops are much less than that

3. it takes a lot of discipline and experience to pull the trigger on #2.

So if I fail to do #3, #1 save my a** :)
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TY again! You've put it beautifully
 
Quote from volente_00:

...bowing out with a small loss and having a clear mind to enter the next high probability setup.
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which you would miss out on if you stop trading after you are down -3 points on a trade

ImPO it would be better to have a daily stop of -9 & reducing your position size by /3, otherwise you will be missing out, especially so considering your rules of 10,20,30 which can all take place on 1 day.
 
I see a huge spike in volume (100k on two 3min bars each) in ES this morning at 9am EST. It doesn't look like a fat finger, price didn't move. Looks more like a controlled exchange of a lot of contracts.

Does anybody else see it? I have IB with ensign charts.

If it is real, any explanation on what it might be?
 
I don't believe in soft stops especially if you are using tight stops.

In the long run if your wrong it just results in bigger losses imo. I don't see how half the people on this journal have no hard stops but then type that they got out at -1??

No way imo that is even possible, ES will rip through your level and most likely make you give up even more as you tried to get filled on an exit.

In long run it just means a lot for slippage being factored into your profits.

I call bullshit on anyone who has not hard stop and then when price blows through them and they then type -1. Total crap if you ask me, no way in hell they are sitting there waiting for price to get to a favourable exit. Most likely if price did move up slightly offering a exit then the trader will most likely just hold onto the trade without exiting as it confirms their original reason for entering the trade.

I find it concerning so many traders actually believe that people get the exits they type in this journal without hard stops - worrying that there are so many paper traders.
 
exactly what u said, a controlled exchange between 2 houses or banks or 1 of each, brokers call it a cross,meaning 2 customers ,1 buyer, 1 seller,who are proprietary over locals,crossed the trade,just a guess
 
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