https://www.elitetrader.com/et/threads/risk-reward-ratio.375110/page-3#post-5830596 no, not the fast and risk free trades. but it can put you in a shelter right quick.
Hello mervyn, Thank you for the link Very impressive. I enjoy the link . Please tell me more about your type of trading please and how it can put me in the shelter. I like this type of this trading, with big big risk and whatever rewards. Please explain Thank you,
I think we test yesterday's Close (5103.24) in RTH. Rally if it holds; new lows (but maybe muted) if not.
Stepping in front of the freight train with a short at 17.50. 4 point stop. EDIT: Auto-breakeven after 5 points of profit kicked in and kicked me out for a tick.
Nice entry. @Laissez Faire, you seem to do a lot of backtesting. Have you backtested if trailing stops in general and trailing stops to BE in particular is helping or hurting your performance? Edit: is your default R/R about 4 or 5 to 1? FWIW, I do tend to move the stop to BE very quickly, particularly on momentum plays. I am torn about it possibly hurting my performance, though.
Never back-tested it greatly. Just mostly experience and playing it by ear. There's nothing special about B/E in and of itself - meaning it can often be a random price point depending on your entry. In a market like ES which back-fills a ton - putting in B/E stops too soon can be deadly as you'll likely stop out and then the market flips back in your intended direction without you or at a worse price. That said, there's also something about not letting a winner turn into a loss, so I try to respect that principle and rather chance on getting back in if I was stopped out prematurely. Also, for me it's a function about how clearly I understand what's going on. If I feel I have a strong position/edge, I can simply hold confidently. If I'm clueless (like today at the moment), I'm more likely to reduce risk when I can and lock in whatever the market gives. R/R depends, but I try to at least maintain 1:1. Best to have minimum 1 risk for 2 reward, but it can be difficult on ES at times. In summary, it depends.
Thank you, I was asking about the R/R because I know you normally have tight stops, but lately seem to be capturing 20+ points, so I didn't see the need to be so aggressive trailing stops. If you're targeting 1-2 R/R, then it makes more sense.
He pretty much says the same thing every time. But the market still clings on to every word coming out of his mouth.