"Scaling out" is inferior behavior

[volente_00]

Quote from Buy1Sell2:

A trader who has determined that 10 is the optimal number of points would wait for the 10 without question. If the market exhibits obvious reversal,then you exit completely with no scale out. If it doesn't exhibit obvious reversal, then he will most likely get those full 10 points. Personally, I use trailing stops in the direction of the trade unless I am building a position starting extremely small. Once I get the size on that I desire, then certainly stops are in outside reaction highs/lows. What the prudent trader would do with the 9 point profit is use a trailing stop so that the -19 does not occur, while leaving the entire position on to get the 10 pts.

How big of trailing stop would you use in this situation ?

 

[Buy1Sell2]

Quote from volente_00:

How big of trailing stop would you use in this situation ?

Trailing stop MUST be outside the recent reaction high/low. If the market never makes a reaction high/low the stop does not move.

 

[volente_00]

Quote from Buy1Sell2:

Trailing stops are always outside reaction highs/lows, never in the noise. That stop must make sense with regard to the 2 percent based upon the current total liquid net worth.

So if the reaction low was more than 20 points, you would place the stop that far out which could result in a winning trade turning into a loser ?

 

[FanOfFridays]

Quote from Buy1Sell2:

A trader who has determined that 10 is the optimal number of points would wait for the 10 without question. If the market exhibits obvious reversal,then you exit completely with no scale out. If it doesn't exhibit obvious reversal, then he will most likely get those full 10 points.

Oh my God

 

[volente_00]

Ok, help me out here.

Say I have a full position avg short on from 1393 right now in ES. Where will my trailing stop be at this point in time ?

 

[FanOfFridays]

Quote from Buy1Sell2:

Those who use profit targets can definitely determine how often a trade runs a particular number of points.

I see. You can determine this at the moment you place the trade, right? For any particular trade?

Good Lord.

 

[illiquid]

Wow this thread keeps getting longer going nowhere. It will rival the "trendfollowing delusion shattered" thread quite soon at this rate.

B1S2 trades his long-term technical "trendfollowing" methodology (aka "hope I got lucky and fundamentals agree with my position this time"), everyone else trades everything else, and never the twain shall meet. You'll have better luck in the Religion and Politics forum for seeing someone change their minds.

 

[Buy1Sell2]

Quote from volente_00:

So if the reaction low was more than 20 points, you would place the stop that far out which could result in a winning trade turning into a loser ?

Certainly! The market must show me obvious reversal or if I was using a profit target must hit that target. I have been riding the ES up from Mid June except for 20 points in exactly that fashion. (I missed roughly 20 points while I was tinkering with the day trading). The trade became profitable but until the market made a new reaction low, my system told me not to move the stop into the noise. That is how you ride trades long term.

 

[Buy1Sell2]

Quote from volente_00:

Ok, help me out here.

Say I have a full position avg short on from 1393 right now in ES. Where will my trailing stop be at this point in time ?

If I had a full short on in ES, the stop would be above the reaction high of 1398. The stop would be set at your comfort level according to your account size.

 

[volente_00]

I've seen many traders go broke letting winners turn into losses. But if it works for you, more power to ya.