What do you think method of taking 2 ticks per trade

[Bad_Badness]

Yeah to Maxinger. a four tick loss plus spread and commissions will add up quickly. So really he is talking 5.3 tick loss to a 0.7 tick gain. What could go wrong?

2 ticks imo is too small because you pay 1 tick for entry and about .3 ticks in comms. Absolute percentages matter.... Also it is not as if ES moves a small number of ticks per minute or hour. There is a sweet spot of trimming gains relative to commissions, spread and risk. 2 ticks is a bit like saying you should eat your bait instead of fishing with it.

 

[Turveyd]

Aren't commisions not far off 2 ticks? So +$25 - comms per trade, fair play for living on $75 - comms.

 

[maxinger]

Yeah to Maxinger. a four tick loss plus spread and commissions will add up quickly. So really he is talking 5.3 tick loss to a 0.7 tick gain. What could go wrong?

2 ticks imo is too small because you pay 1 tick for entry and about .3 ticks in comms. Absolute percentages matter.... Also it is not as if ES moves a small number of ticks per minute or hour. There is a sweet spot of trimming gains relative to commissions, spread and risk. 2 ticks is a bit like saying you should eat your bait instead of fishing with it.

A reward risk ratio of 1:2 is extremely bad. It simply means the newbie trader is still struggling.

He probably started with rr ratio of 2:1.

Then it degraded to 1:1 and further degraded to 1:2 to 1:5 to 1:10 to...

 

[murray t turtle]

....."don't lose money in the long term".
If it works it works. I presume you have some positive expectancy for each trade-

%%
Prefer more than 2 ticks;
but most anything can work in as bull market uptrend.I can eat like a king on 20% hit rate for fast flying doves doVes.
Have also a plan b\ because ''almost never have a losing trade''=small sample.

 

[PytagorasOfSamos]

My target is 2 ticks, and my stop loss is 4 ticks. I make 3 successful trades a day trading 2 contracts, and then I am done for the day. I suppose most people would say my target should be a least 4 ticks. But this method is working for me, and I am able to support myself financially. I am curious, nonetheless.

Sounds awful on many levels. Done for the day, you have edge or you don’t.