Think outside of the box. Imagine 2 pips stop which works in 20% of time (in reality much more often than that), but when works, makes say 50 pips profit. I am sure you wouldn't refuse to average like that.
By the way again, before I met Xspurt a few years ago, I also couldn't imagine how 6 or less pip stops are possible. But things change. World is more how we see it. What is "objective" for one is "fantastic" for another.
Here are examples of actual trades made in October 2011. How in the world you would need more than 6 pips stop on those signals, which are obvious momentum breakouts? In the first case it never went against the trade by even 2 pips if remember right. And such trades do happen every day. Just the matter of focus to see them in time. http://www.cornixforex.com/2011/10/when-price-does-not-go-up-it-falls-down/
Oanda or futures? One thing to remember is when volatility breaks out , that stop increases the probability in your favour. Great!Well done!
All the negativity makes these pros fink , great traders need somebody for entertainment and , others need to keep improving by constant critical reviews.
Thank you. Oanda. Only use futures around news, when Oanda tends to increase spreads in an upredictable manner.
They key to successfully using tight stops is simply to wait when momentum is about to explode, preferably in the direction of some bigger swing. That's it, not hard technically at all.
2 tick stops? Interesting, I only turned profitable when I stopped trying to be so precise with my entries. I modified my trade management strategy to accomodate the fact that I can't call the starts and ends of price swings. Though the leverage of futures requires a high degree of precision that I simply do not have, thus I'm still working on finding a way to day trade them profitably. If you guys are all trading with stops that tight, how do you deal with getting stopped out of trades that eventually go in your favor? That must happen a lot. Do you re-enter, or just wait for the next trade?
Well, 2 ticks is more of an extreme. Most of the time it's like 6 or even 10+ (when volatility is very high and so is noise level). As for those which stop you out and go in your favour there are two nuances: 1) if reason to take the trade is still intact, you may try for a "2nd mouse" entry, which is often good. 2) Trading is poker. Bad beats do happen. Getting stopped out and seeing price going in your favor is no different from folding cards on the turn to see there it would be a winner on the river. Just odds. It hurts when you are not confident that on average you make money with this approach, but with more practice you simply stop to care. If you are get used to fold a lot and know it's just business which makes you money in the long term, you are not stressed about the outcome of single trades anymore.