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Making my use of stops more methodical and effective
- Thread starter improvingstops
- Start date
Here is the correct placement of stops.
Buying .....
place your stop 1 tic above the lowest low that forms after you are filled and before you exit.
Selling ...
Place your stop 1 tic below the highest high that forms after you are filled and before you exit.
I think you will find these two golden rules more than satisfactory.
Buying .....
place your stop 1 tic above the lowest low that forms after you are filled and before you exit.
Selling ...
Place your stop 1 tic below the highest high that forms after you are filled and before you exit.
I think you will find these two golden rules more than satisfactory.
Quote from sosueme:
Here is the correct placement of stops.
Buying .....
place your stop 1 tic above the lowest low that forms after you are filled and before you exit.
Selling ...
Place your stop 1 tic below the highest high that forms after you are filled and before you exit.
I think you will find these two golden rules more than satisfactory.
This seems a rather arbitrary choice. The market is neither that clean nor easy, especially these days. What about a trending market? A choppy market? A sideways market? When the market is going against or with your trade? Without testing this idea, it has a questionable basis.
A better choice is probably to look on your OWN past trading, and try and find decent values that would get you out at an acceptable level, that also maintains overall profitability, and avoids being overexposed/overleveraged.
One old rule, is use stops that to get out of the 20% WORST past trades for your system on a particular intrument (type). Calculating it separately for shorts and for longs is probably a good idea, since they tend to act differenetly. One may adjust this for any % of trades you elect to have stopped out. Considering ATR/volatility is often also suggested.
Quote from TraderZones:
This seems a rather arbitrary choice. The market is neither that clean nor easy, especially these days. What about a trending market? A choppy market? A sideways market? When the market is going against or with your trade? Without testing this idea, it has a questionable basis.
-----------------------------
TZ
I cannot urge you strongly enough to carefully reread my post.
A combination of your immense reasoning powers and a full appreciation for what is and what is not possible, will lead you to the conclusion (more slowly than some others) that my stop placement, when applied, will permit you to always exit for a profit.
Just imagine that, every trade a winning trade and I gave it to you here on ET.
Quote from sosueme:
TZ
I cannot urge you strongly enough to carefully reread my post...
A combination of your immense reasoning powers and a full appreciation for what is and what is not possible, will lead you to the conclusion (more slowly than some others) that my stop placement, when applied, will permit you to always exit for a profit.
Just imagine that, every trade a winning trade and I gave it to you here on ET.
You just blew away all credibility anyone could have for you as a trader...
A) You gave a mindless Trading 101 concept (you think you invented "1 tick above or below"?) As I said, the market does NOT work that way. Unless of course, you care to provide a spreadsheet with thousands of non cherry picked trade examples demonstrating your Trading for Dummies idea.
B) Anyone who thinks all trades profitable or even gives a hoot about "winning%" is not even to the level of paper trader yet.
C) The conclusion you seek that you will always exit at a stop, will only repel serious traders who know a juvenile when they see one
Seriously, which daycare center did you learn how to trade?
Quote from sosueme:
my stop placement, when applied, will permit you to always exit for a profit.
Just imagine that, every trade a winning trade and I gave it to you here on ET.
using stop will never give you a winning trade every time,
within a period of time, I can achieve that, but not with a stop. Stop will ruin your goal of "every trade is a winning trade."
you have to let it go and forget about stop, stop is stupid, never use stop, never never never use a stop.
stop is always associated with loss, hence stop-loss. You never hear stop-win, do you?
stop is for newbies.
again, never use stop and you will be liberated, you will no longer be bothered by loss.
After you give up stop, you will find life is much better, trading is much easier, food tastes more delicious.......
ps: you need an unending supply of capital.
Quote from TraderZones:
You just blew away all credibility anyone could have for you as a trader...
A) You gave a mindless Trading 101 concept (you think you invented "1 tick above or below"?) As I said, the market does NOT work that way. Unless of course, you care to provide a spreadsheet with thousands of non cherry picked trade examples demonstrating your Trading for Dummies idea.
B) Anyone who thinks all trades profitable or even gives a hoot about "winning%" is not even to the level of paper trader yet.
C) The conclusion you seek that you will always exit at a stop, will only repel serious traders who know a juvenile when they see one
Seriously, which daycare center did you learn how to trade?
Hello TraderZones,
I havent been through all your posts, but you are obviously an experienced and skillful trader who is prepared to share some of your knowledge.
I guess that you are what ET really needs, as some of the other Posters don't make sense to me.
jorge
Quote from jorgez:
Hello TraderZones,
I havent been through all your posts, but you are obviously an experienced and skillful trader who is prepared to share some of your knowledge.
I guess that you are what ET really needs, as some of the other Posters don't make sense to me.
jorge
Shameless self-flattery.
You are traderzone himself, you don't deceive me.
Quote from TraderZones:
You just blew away all credibility anyone could have for you as a trader...
A) You gave a mindless Trading 101 concept (you think you invented "1 tick above or below"?) As I said, the market does NOT work that way. Unless of course, you care to provide a spreadsheet with thousands of non cherry picked trade examples demonstrating your Trading for Dummies idea.
B) Anyone who thinks all trades profitable or even gives a hoot about "winning%" is not even to the level of paper trader yet.
C) The conclusion you seek that you will always exit at a stop, will only repel serious traders who know a juvenile when they see one
Seriously, which daycare center did you learn how to trade?
TraderZone
Well I did give you the opportunity to re read my post, but you chose the PRIZE IDIOT route instead.
Anyone who has reached sim stage will tell you that the strategy I outlined is an impossible spoof designed to suck in Idiots like yourself who do not pay attention to what they see, but chose emotional reaction instead.
There are a couple of simple techniques that when applied soon sort out who trades
and who does not.
You allowed yourself to be trapped by one of them.