Registered: Jan 2006
Posts: 8117

Are there any traders on ET who don't use stops? If so, what is your rationale?

Registered: Jul 2001
Posts: 434

Not using stops may make you money on many trades but eventually will be a disaster.

Stop loss I use is based on the charts.

I know that 1.5% is the max % of my account I am willing to risk on a trade.

If I can get outside the noise with that stop I take the trade.

If I can't I'll wait for a better entry or pass on the trade.

The extremely difficult thing for me is how the exit.

I came in this morning long ER and ended up selling at 722 around 10:00 (3.6 pts below the highest bid)

Exits are tough.

Maybe wait till 9:40 and if ES breaks 9:30 LOD sell or just sell based on a % of 9:30 gap gets filled sell.

Would love to be able to hold a few days what seems like a good entry but I can't stomach this much of a pullback.

Well SPX up 4 pts Dow up 50 and ES making new lows
Well I'm done for today don't want to give back any of my gains.

Registered: Jan 2006
Posts: 8117

When you say "outside the noise" , what exactly does that mean. Let's say if you were looking to short--

Registered: Jul 2001
Posts: 434

putting a stop in an area that price has not trade at.

Registered: Jan 2006
Posts: 8117

ok--so you wait for entry that enables you to do that. Is that area generally at the top of congestion or outside it as well from your experience. Sounds like you fade , is that right?

Registered: Jan 2006
Posts: 352

About noise, you need to investigate about volatility bands and ATR (Average True Range). They give you statistical data to avoid the noise. But it is no holly grail. Just a statistical edge.

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