Opinions on Using Fixed Profit Targets

[SimpleMeLike]

Hello All,

What are your thoughts on predefined stop loss and profit targets or bracket orders?

My trading style with one contract has been to:

1. Enter the trade
2. Set a stop loss in a good location (preferably below some price action support or resistance)
3. Pick a profit target level (at some resistance level if long) and wait for price to break that level for more profits.

The problem I face sometimes is price comes to the level and retrace down (if long) and I lose some profits. It makes my decision making kind of challenging. Of course one contract is somewhat a challenge too.

Lately, I been thinking of just exit a certain profit. For example, aim for 20 ticks profit per trade using 20 tick stop loss. That means with a win rate greater then 50% I be profitable on the year. Obviously, I want a higher win rate then 50% (hopefully between 60% and 70%)

I appreciate your comments, opinions, or advice. Thank you.

 

[destriero]

60-70% win rate in delta1 at 1:1 risk. lol good luck! First day, I see.

 

[SimpleMeLike]

60-70% win rate in delta1 at 1:1 risk. lol good luck! First day, I see.

Thanks for the response destriero,

What are you suggesting or stating? Please explain what you mean?

Are you stating 60-70% win rate is not doable?

 

[destriero]

Thanks for the response destriero,

What are you suggesting or stating? Please explain what you mean?

Are you stating 60-70% win rate is not doable?

Not at 1:1 at 20-ticks. No.

 

[SimpleMeLike]

Not at 1:1 at 20-ticks. No.

I appreciate the response.

 

[John9999]

I struggled like hell with this issue... in the end I just saw too many trades go WAY WAY further without me on board after my fixed exit. Also, I got very confused as to what to do next. So, now I use a trailing method that follows moving averages.. good luck

 

[IronFist]

Based on my research, trend following systems require being in until the direction changes.

https://www.elitetrader.com/et/threads/daytrading-2-1-for-small-traders-the-complete-method.282485/

 

[smallfil]

Trend following systems use 2 ATR trailing stop. ATR is Average True Range and the 2 means 2 standard deviations. That should keep you in the trend for a long time. Deep pullbacks can hit your ATR stops and cause huge drawdowns is the risk you have to deal with.

 

[Van_der_Voort_4]

Lately, I been thinking of just exit a certain profit. For example, aim for 20 ticks profit per trade using 20 tick stop loss.

What's wrong with 50/50 and having winners larger than losers?
Did you work on this?

Today psychologically you want to have some kind of control over what will happen,at some later date you might admit to yourself that you will not have any.Have to take what's given to you and be thankful and build your logic based on that.
There is a reason why it takes so long,part of it is work on getting to know yourself,the humility which will ground confidence.

 

[mjf61]

Not at 1:1 at 20-ticks. No.

Dest,

Apologies for sending through on this thread, but I do not seem to have sufficient posts to send PM.

What am I missing on the below -

Buy 100 shares of TUR at 19
Sell SEP 19 call for 3.30
Buy SEP 18 put for 0.80

If TUR above 19 at expiry then I make $250
If TUR below 18 at expiry the I make $150
If TUR between 18-19 at expiry I make between $150-250

I'm sure I'm missing something...