Is trading YM too risky?

Discussion in 'Index Futures' started by chuckie, Jun 25, 2005.

  1. chuckie



    I've been trading YM for a little while now and am happy with what I've been doing. However, the spikes this week are concerning me. I wasn't in a trade in either case, but what would have happened if I had been?

    I'm wondering what would have happened to my stop had I been long in either instance. Say I had been long with a 10 point stop and all of a sudden there was a huge dip like we have seen. What would have happened to my stop? Where would I have been filled? If I had been filled 150 points away that would be like having 15 losers in a row assuming my average stop is 10 points.

    Are there any ways to protect myself in these cases?

    I know there are risks with trading, but I'm wondering if this market is too easy to move? Should I go back to trading ES?

    Thanks for your thoughts.
  2. If you can watch the screen, then use a stop limit order
    with say an extra 20pts as the limit.

    And exit manually if the move down was a real move (ie not a spike) that went through your stop limit price.
    This manual exit is unlikely to be much worse than having a free
    stop loss in the market but has the advantage of not being
    taken out by spikes.

    If you are away from your screen you cannot rely on this method.
  3. use bracket ordering and trailing stop;
    they are invaluable esp for index futures.