Logical stop-loss for er2

Discussion in 'Index Futures' started by feb2865, Feb 8, 2007.

  1. feb2865



    I would like to know if anybody has calculated a logical-stop loss for er2 based on price movement rather than % of equity. I am looking at 4 points but not sure.

  2. Try using a multiple of the ATR (average true range) for whatever timeframe you're trading.
  3. Did you mean 4 ticks or 4 full points ($400/contract) ?
    WIth the VIX at this low level, I can't imagine how crazy this contract will trade if volatility increases.
    It's very frustrating with many runs against "obvious" stop levels during the day. I quit trading it and moved to the NQ....as my stops kept getting hit and then the eRL moved back in my direction. You gotta use your head on this guy. With tight stops, expect a VERY low %win/loss ratio. With wide stops expect a decent win percentage, but you'll take some big "hits". My experience would suggest 2 full points as a stop loss for swing trading during the day.
  4. feb2865


    I am talking about 4 points = 40 ticks
  5. if it's obvious where they are gunning for the stops, then why wouldn't you ENTER there, instead of entering elsewhere and getting stopped out.

    that's a big part of successful trading - taking the opposite side of the losertrader (tm)
  6. 4XIS4U


    Easier said than done.

  7. feb2865


    Thank you guys I really appreciate your efforts but I think I am not making myself clear. Simply trying to establish an average stop-loss based on er2 average volatility . I've been doing some backtesting and I find that 4 full points, based on the actual contract is a good average. Just want to know if anybody has another take.

  8. tyler19


    do you have a profit target and how long do you plan on staying in the trade for?
  9. feb2865


    Yes I have a profit target and I plan to to stay on a trade as either my target is reached, the market changes pattern or my stop is hit.
  10. tyler19


    well how big is the profit target. How is your win/loss ratio looking?
    #10     Feb 8, 2007