YM traders...I've got a question for you

[bmills313]

I've got my entries down and my strategy has been working wonderfully, but I notice in the big moves I'll capture just a bit before getting stopped out. I'm experimenting once I reach a certain price moving my stop to some function based on ATR.

As it stands right now, my strategy is very quick and let's say a movement is 50 points. I'm probably capturing 20-25 points, max, and a lot of the time I hit my first stop/target which in most cases is probably like 8-9 points. My time in a trade rarely exceeds 3-4 minutes right now and some of these sustained rallies might go on for 20+ minutes. I'm always looking for ways to let those winners run and capture more of the potential profits and I feel like my initial stops work great but I need to work on the exit stops so I might grab 40-points of that movement instead of 25.

Does anyone use stops based on ATR when trading these trends? I'm experimenting with it now and I'm wondering if a 2-ATR stop is too wide. It's worked amazing the last couple days with the big moves but I wonder how well it works on days with a little less ebb and flow to the market.

Any thoughts or suggestions would be greatly appreciated!

bmills

 

[vrtrop22]

my stops/targets come from fibonacci lines. I have found using anything less than 15 ticks on the ym is disaster if you want to catch large moves.

 

[2012]

oh you would like to know where my stop is wouldn't you

just kiddin, I am not mad, I am happy you asked this question

the answer is, it depends at what point do you consider trade to be a loser

hopefully not at 80% loss

 

[bmills313]

Quote from vrtrop22:

my stops/targets come from fibonacci lines. I have found using anything less than 15 ticks on the ym is disaster if you want to catch large moves.

Yeah, all my stops & targets come from fibs as well and I view the 50% line as the real turning point in a trade, good or bad.

It seems that on the chart I'm using and the settings I like, 2-ATR turns out to be 16-24 ticks depending on time of day and volatility and I'm liking the results.

Thanks for the advice!