Registered: Aug 2007
02-07-12 05:51 PM
In my backtesting of ES, small stops work well trading S/R in chop, but in trending markets, larger stops are required. In my own trading, I don't use any Protective stops trading ES, but I do not recommend, I also average down on each trade as well. I think stops are more for a catastrophic occurence, the ES is seldom in this state except for release of reports or new flashes.
It still comes down to your money management rules, whether it is price or time, last thing you want happen is to have Protective stop to be engaged. I had seen way too many traders thru the years allow their stops to take them out of a trade when they could have gotten out earlier to save some tics cause Price had changed trend, or trendlines or pivots gotten violated.
Many traders get into that "hope" phase, like a deer in headlites cause their trade is against them. Too many concentrate on getting in, when they should work on getting out, 5% of the trade is getting in, 95% is the exit.