How much breathing room for the Dow

Discussion in 'Trading' started by Mr.B, Apr 19, 2006.

  1. Mr.B


    I am a Emini Dow trader and I usually hold my winners for atl east 20 or more ticks. My question is how much breathing room do you give the dow when entering a trade before you will take a loss. I am currently using a 5-7 tick stop when entering my trades. Does anyone have a different method.
  2. Pekelo


    It really depends on your strategy and style. I also go for the bigger moves, and I have found that I need to give more breathing room (20 points) because of the volatility. Since your style looks similar to mine, I would say the 5-7 points are too tight.
    Time will tell though...
  3. TraderIam


    Same here, usually about 20 pts as well. 5 pts is very tight depending on your style ya might want to ease up a bit.

    Happy trading:)
  4. Mr.B


    Can others elaborate on their trade execution and where they place there stops. What indicators are you looking for when preparing to enter a trade.
  5. I traded YM for a year but have since switched to ES. I always used a 20 point stop.
  6. TraderIam


    I use adx, williams, rsi, and bollinger bands. I usually look for oversold conditions in the williams and divergence in the rsi. Then I look for a downturn in the adx. I use the bolinger band s for support and resistance. I am only after a few points, but in order to get them I need to give the trade room to happen. I used to place my stops super close because I was scared of lose and then the trade would get stopped out and then go my way and I would actualy lose more money because of my fear.

    Anyhow this is what works for me.

    Happy trading :D :D
  7. Mr.B


    I have been trying to use a 20 tick stop and I feel that once it gets passed 10-15 ticks the market has generaly turned directions by this point and will press beyound 20 ticss and not turn in my favor. I would be interested to hear what others use as a strategy for their exits. I have now been having some difficulty keeping my profits. I am unsure of where to exit on my profitable trades and alot of them seem to retrace 10 or more ticks back to my entry point. Any help would be greatfully appreciated.
  8. except for gap plays, my standard stop is 10 pts.

    a few setups i use have 7 pt stops, and one has a 5 pt stop

    gap plays, position trades, etc. have much larger stops. the above is for intraday
  9. TraderIam


    I do generally keep a 20 pts stop. That is the max. I also look at market conditions. I also take half of my postion of of the table when I reach a predestined stop, that way I could let the other half run. And if it starts to retrace you at least have a small profit or a small loss or breakeven.
  10. Mr.B


    Does anyone hane any other opinions useing such a large stop out mark. Please let me know if you have any disagreements with my statement. I feel as if 10 ticks is a wide enough stop loss. It seems that once it crossed this boundry the market seems to have already turned directions and will more then likely continue and stop you out at 20. Please let me know if this makes sence to anyone else. I just feel that the majority of the positions that pass 10 ticks will more then likely hit the 20 stop. Does anyone have any real percentages to back up the 20 stop. I would like to see some data reguarding this because I may be cutting my losses to early.
    #10     Apr 28, 2006