Understanding the Risk vs Reward of Multiple Contracts

K-Pia said:
No Sir. I don't. Debit Spread with options for Intraday trades ?
4 ES Pts is like Scalpin for me. It happens so fast that I couldn't hedge.
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You had use word Option, so I understood it as a hedge, thank you for clearing that up.
 
I have tried this, but often times it was more of a pat on the back trade, for every 19 lots I take off at 2pts, I let one ride for more, and what this should tell most is I am only at 5% profitable when going for more than 2 points, that is what you learn through back testing. But day trading, my personality is not geared to stay in longer than 3 minutes 20 seconds on one trade and I might be in another four signals before first one is complete. Thank God for automation.
 
So you'd like to switch from 4 CONSISTENT Points,
To a GAMBLE of +2 (6Pts) or -X (xPts) in average (2 Contracts) ?

What doesn't make sense is to HOPE for you to catch runners.
It doesn't depend on preference. Cause it ain't what make a good trader.
Not how you want to trade multiple contracts. It adds opportunities and constraints.
See if it brings opportunities for you (Experiment, Test (Backtest)). If so then exploit them.
Otherwise go ahead. For some it's a game changer. For some not ... It's not preferences,
Dude, we're talking business ! Not vacations or whatever. However .. We can't tell.
 
Handle123 said:
I have tried this, but often times it was more of a pat on the back trade, for every 19 lots I take off at 2pts, I let one ride for more, and what this should tell most is I am only at 5% profitable when going for more than 2 points, that is what you learn through back testing. But day trading, my personality is not geared to stay in longer than 3 minutes 20 seconds on one trade and I might be in another four signals before first one is complete. Thank God for automation.
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Thank you.

You trade 20 contracts? Wow that is alot. I'm only at 1 contract and still trying to get to $4000 in sim. I keep trying
 
K-Pia said:
So you'd like to switch from 4 CONSISTENT Points,
To a GAMBLE of +2 (6Pts) or -X (xPts) in average (2 Contracts) ?
More...

K-Pia,

Allow me to clarify.

I currently trade 1 contracts for 4pts profit per trade. Stop loss is 2 pts. Make $200, with risk of -$100

I would like to upgrade to 2 contracts for 4pts profit per trade. Stop loss is 2 pts. Make $400, with risk of -$200

I am asking

1. When would you recommend a trader move from 1 contract to 2 contracts?

Thanks
 
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K-Pia said:
What doesn't make sense is to HOPE for you to catch runners.
It doesn't depend on preference. Cause it ain't what make a good trader.
Not how you want to trade multiple contracts. It adds opportunities and constraints.
See if it brings opportunities for you (Experiment, Test (Backtest)). If so then exploit them.
Otherwise go ahead. For some it's a game changer. For some not ... It's not preferences,
Dude, we're talking business ! Not vacations or whatever. However .. We can't tell.
More...

Thank you K-Pia for explaing

I understand your point now.

I have to test what works best for me. So i will start monitoring this while I back test.
 
Turveyd said:
If your profiting, from 1 contract then just go to 2 contracts, do exactly the same, don't over think it and hey presto, you've got double the profit.

Total no brainer to me!!
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Thank you so much TurvWyd. This is why I love ET for the combined opinions and help.

That make soo much sense. Simplicity. I will try that. That make sense to.

And it doesn't change how I currently trade.
 
I trade all in and all out. Have tried various optimization strategies and have found them to be more trouble than they are worth. As stated in this thread, it's a matter of personal preference but I am fine with wins more frequent and larger than losses (but not 2-1).
 
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