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Old Jun 26th, 2012, 11:18 AM   #1
applejuice
Registered User
 
Join Date: Jun 2011
Posts: 47
Oh hai?

Does anyone have a strong opinion on this?
I have been developing an intense focus on the price ladder, with charts/profile by my side as support tools. I'm scalping FESX, typically taking winners and losers of 1/2/3 ticks, with a few outliers (good and bad) 4/5/6/7.

A big problem I am having is, I am micromanaging my trades excessively. If you stare at the price ladder long enough, you can find a million reasons to buy or sell.
And so it is, I can pick out a good entry, only to scratch it, or take 1/2 tick winner, and then watch it move another 5 ticks in my favour. My win rate simply is not good enough to offset the inevitable -1/-2 tick losers that mount up during the session, not to mention transaction costs.

I am seriously considering telling myself, for the rest of the week, to take either +3 tick winners, -2 tick losers, and scratch only if a +2/3 tick winner comes back to me - so that I give all trades a bit of room to breathe.

No doubt I'll take some -3/-4 tick losers along the way, but overall this profit/loss ratio target should work, assuming I can hit something a little better than 50/50 win rate.

+3/-2 ratio Pros: It prevents me from micromanaging trades, and helps me to remain relaxed during the session

+3/-2 ratio cons: To simply conjur up +3 winner / -2 loser as my target... it seems pretty arbitrary and therefore possibly stupid?

Help ?
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Old Jun 26th, 2012, 06:43 PM   #2
Froglet
 
 
Join Date: Jun 2011
Posts: 152
I don't set targets, because it leads to prejudice and emotional stress.

I just trade.

All the targets are set by computers anyhow. Do you really think your 2.05 STOP LOSS will hit first or the 2.049 or 2.051?

Show hand = giving brokers your target!

As a result, the liquidity bot will flush your stop loss.
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Old Jun 27th, 2012, 02:46 PM   #3
tommo
 
 
Join Date: May 2005
Posts: 129
Why not try it for a week or two. There is only one way to tell if it works. I would be interested to hear how you get on. I have predominantly made money scalping the order book and works for me. But want to develop into running trades longer (still intraday) for 5-10 ticks. But can't make the transition. I have tried forcing myself to a ratio of 2:6 or around that and usually find I end up around break even. Probably down after round turns. I think you need to set your entry and exit based on factors in the Market rather than discretionary numbers in order to get an edge big enough to cover costs
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Old Jul 2nd, 2012, 02:15 PM   #4
murray t turtle
 
 
Join Date: Dec 2001
Location: tn
Posts: 6,595
Quote:
Quote from Froglet:

I don't set targets, because it leads to prejudice and emotional stress.

I just trade.

========
I usually dont set targets ;
good trends tend to trend better both ways- some say ''better than i deserve''

But when one is trading somehing that doesnt trend that well,[Like ES, other index derivatives...] I like targets.As a practical matter, some net profit is better than nothing.

I am not saying I specialize in trading things that do not trend well Wisdom is profitable to direct.

Lots of money has been in 1999,, 2008 with ES...some of it made with huge drawdowns- but you will never comvince me any ''turtle'' wanted to have a huge drawdown. Stuff happens
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Old Jul 12th, 2012, 01:17 PM   #5
spider348
 
 
Join Date: Jan 2007
Posts: 29
I set profit targets for the day and stop loss for the day depending on how I see the market action shaping up. Personally, I tend to over trade and I almost always lose money in phase 1 and 3 of the daily market cycle.
This also translates into price targets and price stop losses based on the "patterns" I trade. So for every trade I have an idea of what my limits will be for the day and it changes each day.
I need to have some kind of a plan, otherwise I just churn.
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Old Jul 13th, 2012, 04:48 PM   #6
intradaybill
 
 
Join Date: Feb 2008
Posts: 2,962
If I may a few questions:

(1) How long have you been scalping this instrument in actual trading?
(2) What commission do you pay?
(3) How many trades you do per day?
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