Day Trading "Ladders": Sequence of OTO trailing stops

Discussion in 'Trading' started by KCalhoun, Sep 2, 2021.

  1. KCalhoun

    KCalhoun

    Here's a new strategy I'm testing... any ideas?

    Set 3 or more OTO trades using tight trailing stops, spaced .4 - .6 apart

    example: buy ABC 20.3 with .2 trailing stop, also add orders at 20.7 and 21.1

    You create a trading ladder, each entry is a rung

    I tested it yesterday and will do a lot more, to find best t/s values eg .1 vs .2 vs .3...... and to find best increments/width of rungs, eg .4 vs .7

    I think it has excellent potential... anyone have lessons learned from similar strategies? thx
     
  2. Stuff like that, especially with "finding best values", will work sometimes, then other times it will just lose money.
     
  3. KCalhoun

    KCalhoun

    So far today I'm profitable using it with UVXY TZA recently, but got small stops on the open with MARA and others.
     
  4. KCalhoun

    KCalhoun

    ended up a bit in the red

    trade size up to 500sh; most 100-200 using trailing stops of .08-.15

    test results:

    2SEPT P/L -121
    MARA -6 -4
    CHPT -4
    NIO -2
    UVXY 1 15 -11 32 27 -16 5 -7 -52(hard stop) -28 12 -8 -28 -19
    TZA 36 -17 -21 28
    SQQQ 17
    X -6
    BGFV -3
    ANY -7 -18

    18 stops -258
    8 wins +137

    Lessons Learned:
    - most stops late in day
    - biggest stop was hard stop
    - very tight .1 to .15 trailing stops work best, no advantage in using big .3+ t/s
    - best exits = reset/tighten t/s once it's ran up > .5

    To improve/action items:
    + Stop trading 11-3 unless rockstar charts
    + Avoid wide-spread tickers like ANY
    + Avoid hard stops
    + Avoid inside ranges eg UVXY
     
    Last edited: Sep 2, 2021