Your stop loss and limit

K

kisiadam

Hi,

I have been trading ES for about a year and I used to create OCO (one cancels other) orders, where one stop loss order would be -6 and one limit order would be +18. In other words, if I entered long and ES went down 6 down or up 18 points my broker software (TOS) would sell it automatically. I haven't been much successful.

What I'd like to know if you guys use OCO orders like this, what interval you are using? -1 points and +4 points ? -4 points and +20 points? What works for you?
 
Quote from ivanbaj:

Did you fail consistently?

If you did, you may have something. Try 18 points stop and 6 points profit.
More...
No I did not fail consistently. I never held a position over night (I should've mentioned this earlier). But the thing is that sometimes I had a chance to get +15 lets say, but I wouldn't take it, and market would go down. I am thinking of doing -4 and +12, but I don't want to see ES go up 20 after going down -4.5 and wiping me out.
Also, I don't want to do 18 points stop and 6 points profit, because if I lose once, it will erase my 3 trades' gains. Don't you guys think it is not the most reasonable thing to do?
 
Quote from kisiadam:

No I did not fail consistently. I never held a position over night (I should've mentioned this earlier). But the thing is that sometimes I had a chance to get +15 lets say, but I wouldn't take it, and market would go down. I am thinking of doing -4 and +12, but I don't want to see ES go up 20 after going down -4.5 and wiping me out.
Also, I don't want to do 18 points stop and 6 points profit, because if I lose once, it will erase my 3 trades' gains. Don't you guys think it is not the most reasonable thing to do?
More...

It can be very reasonable if your win rate is >80%.
 
Quote from kisiadam:

No I did not fail consistently. I never held a position over night (I should've mentioned this earlier). But the thing is that sometimes I had a chance to get +15 lets say, but I wouldn't take it, and market would go down. I am thinking of doing -4 and +12, but I don't want to see ES go up 20 after going down -4.5 and wiping me out.
Also, I don't want to do 18 points stop and 6 points profit, because if I lose once, it will erase my 3 trades' gains. Don't you guys think it is not the most reasonable thing to do?
More...

Depends. It can work with +6 and -18 if you have high win%

Read up on Profit Factor. PF of 1.5 is the same no matter how you achieve it. 1:3 or 3:1
 
Consider scaling in. If you have enough capital to be able to trade more than 1 contract and if your system is not based on a binary logic (Yes/No) then you can scale in if the price moves against you but your system logic still stays the same. You will reduce your average price and improve your chance of success. If the price goes even more against you reverse, and double or triple your position.

The classic and static 1:3, enter and wait may not be for you. Set it and forget it may not work.

It is very scary to trade that way. Mama bird has kicked you out of the nest. Fly or die.
 
thanks for your kind answer, but I am not tyring to change my strategy. I just want to know what is the risk/reward ratio of others who daytrade ES.
 
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