Well, technically you should have a volatility measure and use that to set the stop on a daily basis as it changes.
From Micros to Millions: 2% per day
- Thread starter sstheo
- Start date
I was thinking it would be too difficult, but I have to set the auto-stops each day anyway on each different instrument. The simplicity of a fixed stop is nice, but I will at least consider the % of ATR idea.
Same as my algorithm
. On the 1 minute chart i have a minimum 40 ticks SL on NQ, but the stop can be larger depending on the low of the candle that triggered the entry. Same for 5 minute charts but there the minimum SL is 60 ticks for me.However Syswizard is right, a stop based on volatility is better. I am also working on that.
Why not? You are just teasing/maybe baiting him not encouraging him. If you know something he needs to know tell him plainly what it is. Give the man some real executable practical stuff, if you know some. It ain’t gonna hurt YOU is it? Don’t be so secretive. Spill the beans! Why come on ET and tell traders “it is out there”? Show them what it is, where it is, and how it works. Wishing good luck never helped any trader.
That's a mighty tight stop on the ES in this environment. Your entries truly are great if you can use such tight stops now.
Note that the comment was a reply to Hilmi, not sstheo. As such, it shouldn't be in this journal probably.
I think I got the gist of it, though.
If this is established based on MAE analysis of real trades, then this is a good and correct idea. But, if this arose out of your desires and intellectual inferences, then this is a bad idea that will destroy the established style of trading. Golden principle: while it works - don't change anything!
One or more posters have asked "What is your edge?" My journal is about (1) money management, (2) position sizing, (3) being consistent, and (4) having a goal. But none of these are worth a hill-o-beans if I don't make a profit!
So here goes. Each of these could have an entire book written about it. But here is my condensed version.
Based on the really tough feedback so far on these pages, some of you may say, "nothing special." And I would agree. We all have different ingredients in our trading cakes, but this is MY recipe with a very special blend of ingredients. I really love my carrot cake recipe.
Here are the first 5 of 10:
1) Horizontal Support & Resistance & Trendlines. The value of S & R lines, is probably the only thing that doesn't change on this list. This will always be #1 for me. They are the embodiment of human emotion. The desire to be at "break-even" is so strong that trapped traders who have been under water for a while on a trade will often get out close to their entry to "feel whole" again. This is usually what creates the strong reversals at key points. I am a top/bottom/reversal hunter who is constantly thinking about "Who is in pain right now?"
This is from today. Notice the rectangle. The people who got long here were upside down as much at 30 ES points! What did they do when price finally got close to the entry again? "Whew... I am outa here!" is what they said. And down we went again. This happens on all time frames every single day.
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2) Moving averages, especially the 50 sma. Moving averages are sometimes called "Dynamic Support/Resistance." Check out the 60 min ES chart from today. If this doesn't get your inner-trader salivating, I don't know what would. Crazy man! You gotta watch the MA's!
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3) Range Trading. The market is ranging 70% of the time. Here is my method to scalp the ranges. (I wrote this on MQL5 almost 8 years agohttps://www.mql5.com/en/forum/10647
Despite all the crazy moves, look at these ranges from today. What is your range trading strategy?
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4) Internals: NYSE-Tick. My 1 minute $Tick indicator with a 30 ma Keltner band helps me see emotional highs and lows in the market. This is my fear and greed indicator. When we get above 600 or below -600, then I start to look for reversals. Barring the fed talking-- at the extremes the market moves are unsustainable most of the time. Mmmm, this is a great one.
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5) Internals: Up volume/Down volume & Advance/Decline There are different way to visualize this data, but these essence is that the underlying strength of the market can be seen because the red line is above the green line on both charts. Today was a down day both in price and in the internals, as you can see. Of course a late day rally didn't change the fundamental internal participation.
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Next up:
6) Cumulative Delta
7) VWAP
8) Entering in a pullback
9) Break of Two
10) Volume Profile: Value Area and Point of Control
If you enjoy having your inner trader salivate; 1-5 with the exception of 4 can be simplified into 1 parallelogram based envelope that encapsulates price with 3pt channels. When combined with volume, one can ‘know that they know’ what to anticipate with PA on the HRE.
There is a lotta drool around here today.... Simplification is a great goal for all traders, including yours truly. I don't fully comprehend; post a screen shot here or privately to me? Thanks.
No no not privately ...PUBLICLY.